Palma Co. Ltd. (3461) AI Stock Analysis

• Market Cap: ¥3.61B
• Dividend Yield: 2.25%
• Average Volume (3M): 15.80K
• Price to Earnings (P/E): 29.4
• Beta (1Y): 0.88
• Revenue Growth: -17.73%
• EPS Growth: 51.27%
• Country: JP
• Employees: 40
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 8.82
• Shares Outstanding: 6,765,489
• 10 Day Avg. Volume: 7,220
• 30 Day Avg. Volume: 15,803
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥564.00 ▲(7.02% Upside)

Palma Co. Ltd.'s stock score is primarily influenced by its strong technical momentum, despite challenges in financial performance, particularly in cash flow. The valuation suggests the stock is expensive, but the dividend yield offers some compensation.

Positive Factors

Strong Equity Base

A strong equity base provides a solid financial foundation, enhancing the company's ability to withstand economic fluctuations and invest in growth opportunities.

Improved Leverage

Reduced leverage indicates a more conservative financial approach, lowering financial risk and improving long-term stability.

Operational Efficiency

Enhanced operational efficiency suggests better management of resources, which can lead to sustained profitability and competitive advantage.

Negative Factors

Revenue Decline

Declining revenue trends can indicate challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

Cash Flow Challenges

Negative cash flows highlight liquidity issues, which can constrain the company's ability to invest in growth and meet financial obligations.

Low Net Profit Margin

A low net profit margin indicates inefficiencies in cost management or pricing strategy, which could affect long-term profitability and competitiveness.

Palma Co. Ltd. Business Overview & Revenue Model

Company Description

Palma Co. Ltd. (3461) is a diversified company based in Japan, primarily engaged in the manufacturing and distribution of consumer electronics and industrial machinery. The company operates in various sectors, including home appliances, telecommunications equipment, and automotive components. Palma Co. Ltd. is recognized for its innovative product offerings, emphasizing quality and sustainability, which cater to both domestic and international markets.

How the Company Makes Money

Palma Co. Ltd. generates revenue through multiple channels, including direct sales of its consumer electronics and industrial machinery. The company has established partnerships with major retailers and distributors, enhancing its market reach. Key revenue streams include the sale of home appliances, telecommunications devices, and automotive parts. Additionally, Palma Co. Ltd. invests in research and development to innovate and introduce new products, which helps to maintain its competitive edge and attract a broad customer base. The firm also explores opportunities in emerging markets, further contributing to its earnings through expanded product lines and localized manufacturing.

Palma Co. Ltd. Financial Statement Overview

Summary

Palma Co. Ltd. demonstrates solid revenue growth and a strong balance sheet with low leverage. However, profitability metrics have weakened, and cash flow conversion remains an area for improvement. The company is well-positioned in terms of equity and debt management, but enhancing profitability and cash flow efficiency will be crucial for future financial health.

Income Statement

Palma Co. Ltd. shows a consistent revenue growth with a 19.39% increase from the previous year. However, the net profit margin decreased from 4.75% to 2.88%, indicating pressure on profitability. The gross profit margin improved to 37.98%, suggesting better cost management. Despite a decline in EBIT and EBITDA margins, the company maintains a positive trajectory in revenue generation.

Balance Sheet

The company's balance sheet reflects a strong equity position with an equity ratio of 65.98%. The debt-to-equity ratio stands at 0.31, indicating low leverage and financial stability. Return on equity decreased to 3.46%, highlighting a need for improved profitability. Overall, the balance sheet is robust with a solid equity base and manageable debt levels.

Cash Flow

Palma Co. Ltd. experienced a significant turnaround in free cash flow, moving from negative to positive, with a growth rate of 142.00%. The operating cash flow to net income ratio is 1.16, showing efficient cash generation relative to earnings. However, the free cash flow to net income ratio is 1.03, suggesting limited cash flow conversion. The cash flow statement indicates improving cash management, though further enhancement is needed.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.31B	2.81B	2.35B	2.78B	3.64B
Gross Profit	1.17B	1.07B	854.43M	717.36M	971.96M
EBITDA	214.30M	151.96M	198.84M	64.51M	162.25M
Net Income	122.48M	80.83M	111.87M	29.49M	80.75M
Balance Sheet
Total Assets	3.79B	3.54B	3.64B	3.63B	4.30B
Cash, Cash Equivalents and Short-Term Investments	2.24B	2.48B	2.70B	3.02B	2.72B
Total Debt	898.65M	716.24M	1.00B	1.12B	1.77B
Total Liabilities	1.37B	1.21B	1.35B	1.44B	2.12B
Stockholders Equity	2.42B	2.34B	2.29B	2.19B	2.18B
Cash Flow
Free Cash Flow	-427.31M	82.94M	-197.56M	895.52M	232.94M
Operating Cash Flow	-416.81M	93.92M	-194.02M	907.65M	246.96M
Investing Cash Flow	29.22M	10.63M	7.94M	53.27M	-27.15M
Financing Cash Flow	141.85M	-319.73M	-131.18M	-662.23M	-808.97M

Palma Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 527.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3461, the sentiment is Positive. The current price of 527 is above the 20-day moving average (MA) of 520.85, above the 50-day MA of 513.80, and above the 200-day MA of 520.97, indicating a bullish trend. The MACD of 4.11 indicates Negative momentum. The RSI at 64.77 is Neutral, neither overbought nor oversold. The STOCH value of 56.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3461.

Palma Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2304	76 Outperform	¥4.93B	8.31	―	4.62%	10.60%	36.51%
6072	64 Neutral	¥4.21B	82.19	―	―	40.61%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3461	63 Neutral	¥3.61B	29.44	―	2.25%	-17.73%	51.27%
4351	63 Neutral	¥3.76B	-29.25	―	1.13%	-17.56%	-356.81%
6092	54 Neutral	¥4.78B	8.18	―	1.54%	3.37%	-27.47%