HOKURIKU ELECTRICAL CONSTRUCTION CO.,LTD.1930

Results over the years

From the five-year summary in the latest annual report (consolidated where available). Operating profit is shown only for the two years the report tags.

Why the market may be pricing it low

• Over 30% of sales depend on orders from parent Hokuriku Electric Power Group, making results vulnerable to cuts in utility investment.

  当社グループの売上高において、当社のその他の関係会社である北陸電力㈱を中心とする北陸電力グループからの受注工事量は大きな割合を占めているRisk factors

• The company itself says its home region, Hokuriku, faces faster aging and depopulation than big cities, accelerating economic shrinkage.

  大都市圏に比べ少子高齢化や人口減少のペースが速く、経済規模縮小と労働力減少が加速度的に進展していくと考えられるManagement policy

• Parent Hokuriku Electric Power holds nearly half of shares outstanding, limiting float and reducing the chance of shareholder-driven change.

  北陸電力株式会社 49.4%Shareholders

What could close the gap

• Progress on the mid-term plan's M&A and overseas expansion could shift perception away from dependence on the parent utility.

  Ｍ＆Ａ・海外をはじめとする新たな事業領域の拡大や人財への積極投資など、成長のための施策を確実に遂行していくManagement policy

• Management ties dividends to DOE with capital-cost awareness; a future increase in the DOE target could reshape shareholder return expectations.

  資本コストや株価を意識した経営の実現に向けて株主の皆様に対する利益還元強化の姿勢を明確に示すため、ＤＯＥを配当にあたっての指標としているDividend policy

• Backlog is expected to hit a record high; if this translates into confirmed revenue and profit growth, it could prompt reassessment.

  2025年度からの繰越工事高が前連結会計年度をさらに上回り過去最高となるMD&A

How a buyer could still lose (value trap)

• A rise in receivables caused operating cash flow to drop sharply from the prior year, so cash generation lagged reported profit growth.

  営業活動によるキャッシュ・フローは、売上債権の増加などがあったものの、税金等調整前当期純利益の計上などにより、5億54百万円の資金増加(前連結会計年度比70億49百万円減)となったMD&A

• Operating cash flow was only ¥554 million, about a tenth of the ¥5.12 billion operating profit, showing weak cash conversion.

  Based on the figures below

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✓ROA up on last year
• ✗Cash flow exceeds net profit
• ✓Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• ✓Gross margin up on last year
• ✓Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

¥61.0bn

Operating profit

¥5.1bn

Net profit

¥3.9bn

Operating cash flow

¥0.6bn

Cash

¥20.0bn

Debt

¥0.1bn

Equity

¥46.1bn

Annual report for the year to 2026-03-31