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Hokushin Co., Ltd. (JP:7897)
:7897
Japanese Market
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Hokushin Co., Ltd. (7897) AI Stock Analysis

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JP:7897

Hokushin Co., Ltd.

(7897)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
¥106.00
▼(-4.50% Downside)
Action:Reiterated
Date:08/17/26
The score is held back primarily by weakening profitability (loss/near-breakeven results and negative operating profit), despite a healthier balance-sheet leverage profile and a notable 2026 rebound in operating and free cash flow. Technicals are moderately positive but somewhat stretched, while valuation is a key risk given the very high P/E relative to current earnings strength.
Positive Factors
Improving leverage
Lower leverage improves solvency and financial flexibility, reducing balance-sheet pressure during periods of weak earnings. The decline in debt-to-equity provides a durable foundation for investment and operations if profitability remains challenged.
Negative Factors
Persistent profitability deterioration
Recent losses and negative operating profit weaken earnings quality and limit the company’s ability to reinvest, reward shareholders, or absorb further cost pressure. A sustained recovery in operating profitability is needed to restore durable financial strength.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage
Lower leverage improves solvency and financial flexibility, reducing balance-sheet pressure during periods of weak earnings. The decline in debt-to-equity provides a durable foundation for investment and operations if profitability remains challenged.
Read all positive factors

Hokushin Co., Ltd. (7897) vs. iShares MSCI Japan ETF (EWJ)

Hokushin Co., Ltd. Business Overview & Revenue Model

Company Description
Founded in 1950, Hokushin Co., Ltd. specializes in the manufacturing and marketing of medium density fiberboards (MDF). The firm's base of operations is located in Kishiwada, Japan....
How the Company Makes Money
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Hokushin Co., Ltd. Financial Statement Overview

Summary
Overall financials are mixed. Profitability has deteriorated sharply (near-breakeven in 2025 and a small net loss in 2026 with negative operating profit), which is the main drag. Offsetting this, leverage is moderate and improving (debt-to-equity down to ~0.78x), and 2026 showed a meaningful rebound in operating cash flow (~¥0.92B) with strongly positive free cash flow (~¥0.51B), though cash flow has been inconsistent over time.
Income Statement
38
Negative
Balance Sheet
54
Neutral
Cash Flow
61
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue11.24B10.27B10.22B10.98B12.89B10.78B
Gross Profit1.38B1.39B1.34B1.54B1.98B1.74B
EBITDA321.12M334.18M378.17M548.34M767.65M850.02M
Net Income17.64M-27.58M20.34M158.74M332.41M377.34M
Balance Sheet
Total Assets14.51B13.07B13.73B14.34B14.38B13.60B
Cash, Cash Equivalents and Short-Term Investments1.67B1.67B1.68B1.71B1.67B1.67B
Total Debt5.47B4.57B5.02B5.05B5.08B5.10B
Total Liabilities8.71B7.18B7.91B8.40B8.59B8.07B
Stockholders Equity5.80B5.89B5.82B5.94B5.79B5.54B
Cash Flow
Free Cash Flow0.00506.00M-60.37M127.14M143.36M-59.58M
Operating Cash Flow0.00923.46M268.67M259.55M463.70M176.16M
Investing Cash Flow0.00-436.11M-199.89M-80.74M-329.76M-243.59M
Financing Cash Flow0.00-499.91M-93.31M-144.74M-134.40M-71.94M

Hokushin Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price111.00
Price Trends
50DMA
101.86
Positive
100DMA
102.25
Positive
200DMA
105.68
Positive
Market Momentum
MACD
1.66
Negative
RSI
75.76
Negative
STOCH
91.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7897, the sentiment is Positive. The current price of 111 is above the 20-day moving average (MA) of 103.95, above the 50-day MA of 101.86, and above the 200-day MA of 105.68, indicating a bullish trend. The MACD of 1.66 indicates Negative momentum. The RSI at 75.76 is Negative, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7897.

Hokushin Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
¥30.16B9.363.72%0.40%167.42%
60
Neutral
¥5.04B7.243.01%-1.41%-40.14%
57
Neutral
¥8.94B6.971.90%7.74%82.31%
56
Neutral
¥3.94B3.719.19%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
52
Neutral
¥3.09B64.121.80%2.96%
48
Neutral
¥1.00B-0.95
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7897
Hokushin Co., Ltd.
109.00
-24.46
-18.33%
JP:3877
Chuetsu Pulp & Paper Co., Ltd.
2,239.00
598.79
36.51%
JP:3878
Tomoegawa Corporation
877.00
158.44
22.05%
JP:3896
AWA PAPER & TECHNOLOGICAL COMPANY, Inc.
419.00
27.00
6.89%
JP:7808
C.S. LUMBER CO.,INC
2,711.00
-639.11
-19.08%
JP:7815
Tokyo Board Industries Co., Ltd.
371.00
-235.00
-38.78%
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 17, 2026