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Hokushin Co., Ltd. (7897) AI Stock Analysis

JP:7897

Hokushin Co., Ltd.

(TSE/TYO:7897)

Select Model
Rating:68Neutral
Price Target:JPY 129.00â–²(17.27% Upside)
Action:reiterated
Date:09/30/26

The overall score is driven by strong technical momentum and excellent cash flow generation, which are counterbalanced by poor recent profitability and an elevated P/E ratio. While the company faces bottom-line challenges, a successfully deleveraged balance sheet and solid liquidity provide a resilient foundation for future recovery.

Positive Factors
Improving LeverageLower leverage improves financial flexibility and reduces the balance-sheet burden carried by the building-materials business. If maintained, the trend should support resilience through construction cycles and leave more capacity for product investment, working capital, or other strategic needs.
Negative Factors
Profitability DeteriorationRecent losses weaken internally generated capital and reduce the durability of shareholder returns. Persistent operating losses would limit reinvestment and make the business more vulnerable to construction-market softness, especially if pricing or product mix does not improve.

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

-15%-10%-5%0%5%10%15%20%25%30%JP:7897+0.99%EWJ+16.91%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 3.23B
Dividend Yield
1.75%
Average Volume (3M)
410.61K
Price to Earnings (P/E)
67.1
Beta (1Y)
0.40
Revenue Growth
1.75%
EPS Growth
―
Country
Japan
Employees
167
Sector
General
Sector Strength
55
Industry
Paper, Lumber & Forest Products

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

Hokushin generates revenue primarily through (1) selling its manufactured building and interior materials (notably decorative/laminated panels and related interior finishing components) to customers involved in new construction and renovation, and (2...

Hokushin Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. While the company struggles with stagnating revenues and recent net losses, it maintains a strong balance sheet with reduced debt levels and exceptional recent cash flow generation.

Income Statement

35Negative

Balance Sheet

75Positive

Cash Flow

85Very Positive
Financial statement breakdown
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 Flow0506.00M-60.37M127.14M143.36M-59.58M
Operating Cash Flow0923.46M268.67M259.55M463.70M176.16M
Investing Cash Flow0-436.11M-199.89M-80.74M-329.76M-243.59M
Financing Cash Flow0-499.91M-93.31M-144.74M-134.40M-71.94M

Hokushin Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price110.00

Price Trends

50DMA110.40Negative
100DMA105.64Positive
200DMA106.11Positive

Market Momentum

MACD0.44Positive
RSI46.20Neutral
STOCH37.50Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7897, the sentiment is Negative. The current price of 110.00 is below the 20-day moving average (MA) of 112.85, below the 50-day MA of 110.40, and above the 200-day MA of 106.11, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 46.20 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7897.

Hokushin Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7897 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:7897JP:789768NeutralJPY 3.23B67.06―1.75%1.75%―
JP:3896JP:389666NeutralJPY 3.95B3.51―0.51%9.19%―
JP:3877JP:387765NeutralJPY 27.52B8.61―5.34%0.40%167.42%
JP:3878JP:387859NeutralJPY 8.84B6.95―1.72%7.74%82.31%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7808JP:780855NeutralJPY 4.87B7.00―3.04%-1.19%-40.06%
JP:7815JP:781541NeutralJPY 824.23M0.26――――

* General Sector Average

Performance Comparison

-50%-25%0%25%JP:7897JP:3877JP:3878JP:3896JP:7808JP:7815Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:7897 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7897Hokushin Co., Ltd.110.001.080.99%
JP:3877Chuetsu Pulp & Paper Co., Ltd.2043.00469.7529.86%
JP:3878Tomoegawa Corporation857.0089.3611.64%
JP:3896AWA PAPER & TECHNOLOGICAL COMPANY, Inc.393.0037.6710.60%
JP:7808C.S. LUMBER CO.,INC2632.00-383.10-12.71%
JP:7815Tokyo Board Industries Co., Ltd.312.00-282.00-47.47%
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: Sep 30, 2026