Improved Gross MarginA sharp gross-margin improvement in FY2025 suggests stronger pricing power or better cost control at the core product level. If sustained, higher gross margins create room to cover fixed operating costs, improve operating leverage and form the first structural step toward restoring profitability.

Lower LeverageDeclining debt-to-equity reduces financial risk and interest burden, improving solvency headroom. A more moderate leverage profile enhances the company's ability to withstand cyclical weakness, pursue selective investments or refinance maturities without immediate pressure on cash flows.

Operating Cash Flow Turned PositiveRestoring positive operating cash flow indicates the business is beginning to generate cash from core activities rather than relying on financing. Sustained OCF supports working-capital needs, discretionary capex and gradual deleveraging, improving medium-term financial flexibility.

Bears Say

Consecutive Loss-Making YearsPersistent operating and net losses over multiple years erode equity, limit reinvestment capacity and can damage supplier/customer confidence. Without durable operating-profit recovery, losses increase the risk of capital shortfalls or the need for dilutive financing.

Revenue Pullback And Shrinking Asset BaseA meaningful revenue decline reduces scale and weakens economies of scale and pricing leverage. Coupled with a shrinking asset base, this constrains operational flexibility and future growth capacity, making a stable recovery harder without clear demand improvement.

Inconsistent Free Cash FlowVolatile and inconsistent free cash flow limits the firm's ability to fund capex, repay debt, or sustain dividends without external financing. In combination with recent losses, uneven FCF raises refinancing and operational risk if adverse conditions persist.

6347 FAQ

What was Placo Co., Ltd.’s price range in the past 12 months?

Placo Co., Ltd. lowest stock price was ¥182.00 and its highest was ¥431.00 in the past 12 months.

What is Placo Co., Ltd.’s market cap?

Placo Co., Ltd.’s market cap is ¥3.88B.

When is Placo Co., Ltd.’s upcoming earnings report date?

Placo Co., Ltd.’s upcoming earnings report date is Aug 07, 2026 which is in 170 days.

How were Placo Co., Ltd.’s earnings last quarter?

Placo Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥1.69 earnings per share for the quarter, beating the consensus estimate of N/A by ¥1.69.

Is Placo Co., Ltd. overvalued?

According to Wall Street analysts Placo Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Placo Co., Ltd. pay dividends?

Placo Co., Ltd. pays a Annually dividend of ¥6 which represents an annual dividend yield of 1.67%. See more information on Placo Co., Ltd. dividends here

What is Placo Co., Ltd.’s EPS estimate?

Placo Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Placo Co., Ltd. have?

Placo Co., Ltd. has 10,287,476 shares outstanding.

What happened to Placo Co., Ltd.’s price movement after its last earnings report?

Placo Co., Ltd. reported an EPS of ¥1.69 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1%.

Which hedge fund is a major shareholder of Placo Co., Ltd.?

Currently, no hedge funds are holding shares in JP:6347

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Placo Co., Ltd.

Placo Co., Ltd. manufactures and sells plastic molding machines and recycling equipment in Japan. It offers inflation film molding machines, blow molding machines, and environmental equipment. The company's products are used in the production of biodegradable plastics and automobile parts, as well as in the reduction of carbon dioxide emissions. The company was founded in 1940 and is headquartered in Saitama, Japan.