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HAGIHARA INDUSTRIES INC. (7856) AI Stock Analysis

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JP:7856

HAGIHARA INDUSTRIES INC.

(TSE/TYO:7856)

Select Model
Rating:70Outperform
Price Target:JPY 2,185.00â–²(15.61% Upside)
Action:reiterated
Date:08/06/26

The score is primarily driven by solid financial stability (notably low leverage) but offset by declining profitability and negative recent revenue growth. Technicals are mixed with limited momentum despite a generally supportive longer-term trend. Valuation is moderately favorable, helped by an attractive dividend yield and a reasonable P/E.

Positive Factors
Conservative leverageVery low leverage and a strong equity base provide financial resilience across the next several quarters. This reduces dependence on borrowing, limits interest-related pressure, and preserves capacity to fund operations or pursue opportunities if industrial demand remains uneven.
Negative Factors
Declining net profitabilityThe sharp decline in net margin shows that less of each sales yen is converting into bottom-line earnings. If this persists, it can weaken internal capital generation, reduce the benefit of stable gross margins, and constrain investment or shareholder returns.

HAGIHARA INDUSTRIES INC. (7856) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%JP:7856+25.39%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 26.67B
Dividend Yield
3.97%
Average Volume (3M)
111.74K
Price to Earnings (P/E)
15.4
Beta (1Y)
0.47
Revenue Growth
0.76%
EPS Growth
-4.20%
Country
Japan
Employees
1,292
Sector
General
Sector Strength
55
Industry
Manufacturing - Textiles

HAGIHARA INDUSTRIES INC. Business Overview & Revenue Model

Company Description

Hagihara Industries Inc., headquartered in Kurashiki, Japan, and established in 1962, specializes in manufacturing and distributing flat yarns along with related industrial machinery. Its Plastics Business segment provides a broad array of textile pr...

How the Company Makes Money

HAGIHARA INDUSTRIES makes money primarily by manufacturing and selling synthetic resin–based industrial materials and finished products, generating revenue from (1) product sales of resin-fiber and resin-sheet materials (e.g., polypropylene woven fab...

HAGIHARA INDUSTRIES INC. Financial Statement Overview

Summary

Financially stable overall with a strong balance sheet (low debt-to-equity of 0.15), but profitability and growth are weakening: net margin declined (9.98% in 2023 to 5.62% in 2025) and latest revenue growth is negative (-2.5%). Cash generation is decent but not strong, with a moderate free-cash-flow-to-net-income ratio (0.45) and volatile FCF growth.

Income Statement

72Positive

Balance Sheet

78Positive

Cash Flow

68Positive
Financial statement breakdown
BreakdownTTMOct 2025Oct 2024Oct 2023Oct 2022Oct 2021
Income Statement
Total Revenue33.00B31.94B33.12B31.25B29.95B27.71B
Gross Profit8.89B8.41B8.89B8.36B7.85B8.14B
EBITDA4.23B3.60B3.83B3.55B2.86B3.65B
Net Income1.73B1.79B1.52B3.12B943.03M1.62B
Balance Sheet
Total Assets44.85B42.73B42.58B42.65B38.45B34.79B
Cash, Cash Equivalents and Short-Term Investments4.33B5.86B5.60B6.14B5.31B7.44B
Total Debt4.33B4.52B5.45B6.69B4.49B2.40B
Total Liabilities12.70B11.77B13.48B14.53B12.50B9.55B
Stockholders Equity32.11B30.94B29.08B28.10B25.94B25.24B
Cash Flow
Free Cash Flow2.04B2.04B1.08B169.51M-3.66B149.40M
Operating Cash Flow4.49B4.49B4.42B4.58B1.05B1.59B
Investing Cash Flow-2.77B-2.77B-3.15B-4.65B-4.17B-1.61B
Financing Cash Flow-1.68B-1.68B-1.73B1.04B706.53M-311.02M

HAGIHARA INDUSTRIES INC. Technical Analysis

Technical Analysis SentimentNeutral
Last Price1890.00

Price Trends

50DMA1943.15Negative
100DMA1832.45Positive
200DMA1745.89Positive

Market Momentum

MACD-5.15Positive
RSI35.24Neutral
STOCH-7.87Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7856, the sentiment is Neutral. The current price of 1890.00 is below the 20-day moving average (MA) of 1981.20, below the 50-day MA of 1943.15, and above the 200-day MA of 1745.89, indicating a neutral trend. The MACD of -5.15 indicates Positive momentum. The RSI at 35.24 is Neutral, neither overbought nor oversold. The STOCH value of -7.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7856.

HAGIHARA INDUSTRIES INC. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7856 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3201JP:320174OutperformJPY 127.41B13.05―2.31%-0.33%40.20%
JP:7856JP:785670OutperformJPY 27.35B15.37―3.97%0.76%-4.20%
JP:7447JP:744770OutperformJPY 50.11B18.94―4.18%1.31%6.19%
JP:3104JP:310463NeutralJPY 110.36B18.76―2.36%14.36%22.61%
JP:3002JP:300259NeutralJPY 121.80B28.274.18%3.58%-4.36%49.85%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:3501JP:350155NeutralJPY 15.85B-28.85―3.54%2.33%-144.00%

* General Sector Average

Performance Comparison

0%25%50%75%JP:7856JP:3002JP:3104JP:3201JP:3501JP:7447Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7856 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7856HAGIHARA INDUSTRIES INC.1890.00344.2822.27%
JP:3002Gunze 4110.00504.7314.00%
JP:3104Fujibo Holdings, Inc.3265.001035.3746.44%
JP:3201Japan Wool Textile Co., Ltd.2074.00487.8530.76%
JP:3501Suminoe Textile Co., Ltd.1131.00-40.81-3.48%
JP:7447Nagaileben Co., Ltd.1673.00-15.94-0.94%

HAGIHARA INDUSTRIES INC. Corporate Events

Hagihara Industries Completes Treasury Share Allotment to Development Bank of Japan

Sep 30, 2026

Hagihara Industries Inc. has completed payment for the disposal of 486,600 treasury shares via a third-party allotment to Development Bank of Japan Inc. at 1,863 yen per share, raising approximately 906.5 million yen. The transaction, tied to a broad...

Hagihara Industries Corrects Data on Alliance and Treasury Share Disposal

Sep 10, 2026

Hagihara Industries Inc., listed on the Tokyo Stock Exchange Prime Market under securities code 7856, operates in Japan as a manufacturing and industrial materials company. The firm actively uses equity financing measures, including treasury share di...

Hagihara Industries Forms Growth-Focused Alliance With DBJ and Issues Shares

Sep 7, 2026

Hagihara Industries has entered a capital and business alliance with Development Bank of Japan to support its medium- to long-term growth strategy and execution of its “LINK THE LEAP” plan. DBJ, a government-owned policy-based financial i...

Hagihara Industries Revives and Revises Shareholder Benefit Program

Sep 7, 2026

Hagihara Industries has reversed its earlier decision to abolish its shareholder benefit program after October 2026, opting instead to resume and partially modify the scheme from the fiscal year ending October 2027. The move follows strong feedback f...

Hagihara Industries Revises and Extends Shareholder Benefit Program

Sep 7, 2026

Hagihara Industries Inc. has finalized the details of its shareholder benefit program for investors holding at least 100 shares as of the end of October 2026. The benefits include a range of consumer goods, regional food products, museum shop items,...

Hagihara Industries Delivers Strong Profit Growth and Raises Dividend Outlook

Sep 7, 2026

For the nine months ended July 31, 2026, Hagihara Industries posted net sales of ¥25,110 million, up 4.4% year on year, with operating profit jumping 38.2% and ordinary profit 45.0%. Despite this profit growth, profit attributable to owners of p...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 06, 2026