Hokuriku Gas Co., Ltd. (9537) AI Stock Analysis

Hokuriku Gas Co., Ltd.

(TSE/TYO:9537)

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Rating:85Outperform

Price Target:JPY 5,246.00▲(25.50% Upside)

Action:upgraded

Date:08/21/26

Hokuriku Gas earns a strong overall score, predominantly driven by its pristine, zero-debt balance sheet and a highly compelling valuation. An exceptionally attractive P/E ratio of 6.45 provides deep value for investors, while the company's recent transition to robust net profitability bolsters its fundamental profile. Although technical indicators are largely neutral, the stock's defensive stability and strong cash generation make it a resilient investment.

Positive Factors

Very Low LeverageMinimal debt and expanding equity provide substantial financial resilience. This strengthens the company’s ability to maintain its pipeline network, absorb operating volatility, and fund necessary investment without relying heavily on external financing.

Negative Factors

Margin VolatilityUneven margins show that earnings remain sensitive to the relationship between gas procurement costs and customer rates. The lower-margin regulated model may limit profitability expansion and leave results vulnerable when cost recovery is delayed.

Hokuriku Gas Co., Ltd. (9537) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 19.51B
Dividend Yield: 1.91%
Average Volume (3M): 667
Price to Earnings (P/E): 6.0
Beta (1Y): 0.20
Revenue Growth: 1.67%
EPS Growth: 34.46%
Country: Japan
Employees: 652
Sector: General
Sector Strength: 55
Industry: Regulated Gas

Hokuriku Gas Co., Ltd. Business Overview & Revenue Model

Company Description

Hokuriku Gas Co.,Ltd. is a prominent utility company primarily engaged in Japan's natural gas industry. The firm is responsible for the production, distribution, and retail of gas to residential and commercial customers across specific regions, inclu...

How the Company Makes Money

The company primarily makes money by selling city gas to end users. Revenue is generated through recurring consumption-based charges (based on metered gas usage) and customer tariffs/fees associated with providing service (e.g., basic charges embedde...

Hokuriku Gas Co., Ltd. Financial Statement Overview

Summary

The company boasts a remarkable profitability turnaround and robust operating cash flow generation. Most notably, it maintains a fortress-like balance sheet with virtually zero leverage, providing exceptional defensive stability against macroeconomic pressures.

Income Statement

85Very Positive

Balance Sheet

95Very Positive

Cash Flow

88Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	64.45B	64.44B	61.77B	61.41B	69.63B	52.36B
Gross Profit	24.97B	25.08B	16.41B	13.62B	14.81B	15.94B
EBITDA	15.03B	9.71B	7.34B	5.13B	6.46B	7.34B
Net Income	3.23B	3.18B	1.95B	-1.76B	420.15M	953.81M
Balance Sheet
Total Assets	69.90B	71.51B	65.19B	63.03B	64.22B	64.08B
Cash, Cash Equivalents and Short-Term Investments	8.28B	8.23B	8.75B	7.19B	6.97B	6.75B
Total Debt	62.89M	69.23M	109.67M	1.15B	188.74M	661.77M
Total Liabilities	11.85B	14.58B	13.04B	13.32B	13.08B	13.36B
Stockholders Equity	54.67B	53.56B	48.83B	46.44B	47.90B	47.51B
Cash Flow
Free Cash Flow	0	3.05B	3.64B	35.39M	694.82M	3.25B
Operating Cash Flow	0	9.01B	7.76B	4.75B	5.54B	7.96B
Investing Cash Flow	0	-10.00B	-4.94B	-5.06B	-4.09B	-4.97B
Financing Cash Flow	0	-401.84M	-1.40B	299.84M	-1.05B	-1.09B

Hokuriku Gas Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price4180.00

Price Trends

50DMA4269.30Negative

100DMA4278.00Negative

200DMA4375.44Negative

Market Momentum

MACD-24.43Negative

RSI43.09Neutral

STOCH43.38Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9537, the sentiment is Negative. The current price of 4180.00 is below the 20-day moving average (MA) of 4196.25, below the 50-day MA of 4269.30, and below the 200-day MA of 4375.44, indicating a bearish trend. The MACD of -24.43 indicates Negative momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 43.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9537.

Hokuriku Gas Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:9537 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:9537	85Outperform	JPY 20.16B	6.03	―	1.91%	1.67%	34.46%
JP:9543	75Outperform	JPY 101.52B	10.47	7.33%	3.25%	0.10%	40.92%
JP:9534	74Outperform	JPY 78.11B	8.32	―	3.05%	0.69%	-22.03%
JP:9533	73Outperform	JPY 466.98B	25.98	3.73%	1.75%	-2.49%	-30.83%
JP:9536	62Neutral	JPY 100.51B	9.54	8.87%	2.51%	-5.67%	20.75%
JP:9539	62Neutral	JPY 41.10B	9.82	―	2.08%	1.76%	18.95%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:9537 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:9537	Hokuriku Gas Co., Ltd.	4180.00	608.01	17.02%
JP:9533	TOHO GAS Co	1286.00	178.47	16.11%
JP:9536	SAIBU GAS HOLDINGS CO. LTD.	2788.00	969.82	53.34%
JP:9543	SHIZUOKA GAS CO. LTD.	1369.00	280.94	25.82%
JP:9534	Hokkaido Gas Co., Ltd.	870.00	187.56	27.48%
JP:9539	Keiyo Gas Co., Ltd.	1250.00	104.20	9.09%

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 21, 2026

Hokuriku Gas Co., Ltd. AI Stock Analysis