Hirata (TSE:6258) Stock Shrugs Off A Sharp Earnings Surge

The market barely blinked at Hirata today. The stock closed at ¥3,165, roughly in line with its strong 7 day and 30 day gains, even as the latest quarter showed earnings power that looks far punchier than the share price reaction suggests.

For a company often treated as a steady automation supplier, Q1 FY2027 landed with Basic EPS of ¥86.07 and net income of ¥2,636m on revenue of ¥25,883m. The bigger story sits in the trailing picture, where earnings over the past year and a P/E of 12.8x present a profit profile that does not fully match the muted move in the stock.

Impressed by Hirata's earnings power but wondering if the current P/E leaves enough margin of safety? Compare this setup against 18 high quality undervalued stocks.

Q1 2027 Earnings Summary

• Revenue (Q1 2027 vs Q1 2026): ¥25,883 m vs. ¥22,128.999 m (up about 16.9%)
• Net Income (Excl. Extra Items, Q1 2027 vs Q1 2026): ¥2,636 m vs. ¥1,166.991 m (up about 126%)
• Basic EPS (Q1 2027 vs Q1 2026): ¥86.07 vs. ¥38.15 (up about 126%)
• Trailing Twelve Month Net Income (Excl. Extra Items, Q1 2027 TTM vs Q1 2026 TTM): ¥7,546.009 m vs. ¥5,222.483 m (up about 44.5%)

Prefer clear charts instead of another wall of financial figures and footnotes? See Hirata's full financial picture, including a clear view of its valuation, in the company report for Hirata.

Hirata earnings and the bullish automation story

For investors leaning positive on Hirata, the latest quarter gives that view some backing. Revenue rose from ¥22,128.999 m to ¥25,883 m and net income more than doubled to ¥2,636 m, which points to improving earnings power from its automation and equipment mix. Trailing twelve month net income of ¥7,546.009 m is also higher than the prior year period. That sits reasonably well with a thesis that EV, semiconductor and factory automation exposure is feeding through into healthier profitability right now.

Where the Hirata bear case still has room

The bear case around cyclicality does not disappear with one strong quarter. The 90 day share price return is down about 9.6% even after a solid 7 day and 30 day bounce, which hints at earlier market concerns around orders or capex sensitivity. Earnings and revenue are moving in a positive direction, yet the share price has not fully kept pace. That disconnect leaves room for worries about how durable this upswing might be if EV and semiconductor customers slow spending.

After a 9.6% 90 day share price decline and an unstable dividend history, consider whether you are missing deeper structural risks. Review our risk analysis for Hirata which shows 2 important warning signs.

Stay Ahead With Hirata Insights

If Hirata's recent earnings strength and subdued share price reaction have your attention, register for free with Simply Wall St and add it to your Watchlist so you can track price against fair value and wait for a setup that fits your plan. When you decide to take a position, use the Portfolio Command Center to cut through noise and focus on the key fundamental and valuation updates that matter to your holdings. For the longer journey, lean on the Community to see how other investors are thinking about Hirata and similar stocks. This way you can spot potential catalysts and risks earlier and keep a step ahead of the wider market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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