Palma Co. Ltd. (3461) AI Stock Analysis

• Market Cap: ¥3.68B
• Dividend Yield: 2.25%
• Average Volume (3M): 15.80K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 0.86
• Revenue Growth: -17.73%
• EPS Growth: 51.27%
• Country: JP
• Employees: 40
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 3.87
• Shares Outstanding: 6,765,489
• 10 Day Avg. Volume: 7,220
• 30 Day Avg. Volume: 15,803
• PEG Ratio: 0.58
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 1.57
• P/FCF Ratio: -8.50
• 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)
• Action: Reiterated Date: 12/20/25
• Date: Action: Reiterated 12/20/25

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. provides self-storage business solutions in Japan. It offers outsourcing services, such as tenant applications and eligibility screenings; billing and payment services, rent guarantor services comprising rent reimbursement, and delinquency management; on-site facility management; disposal of abandoned tenant property; information technology services, including portal site and unit inventory control system; and marketing and promotion. The company also provides consulting services, such as market research and analysis, self-storage development, and representing overseas investors and operators. Palma Co., Ltd. was incorporated in 1969 and is headquartered in Chiyoda, Japan.

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. shows operational efficiency and a strong equity base, but struggles with revenue growth and cash flow generation. Improved leverage is a positive, but liquidity issues need addressing.

Income Statement

Palma Co. Ltd. has shown fluctuating revenue trends with a recent decline in total revenue from 2024 to 2025. The gross profit margin has improved to 50.43% in 2025, indicating better cost management. However, the net profit margin remains relatively low at 5.30%, suggesting challenges in converting revenue into profit. The EBIT and EBITDA margins have improved, reflecting operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio has decreased over the years, reaching 0.37 in 2025, indicating a more conservative leverage approach. Return on equity has improved to 5.06%, showing better profitability relative to shareholder equity. The equity ratio stands at 63.84%, suggesting a strong equity base compared to total assets.

Cash Flow

Palma Co. Ltd. faces challenges with negative operating and free cash flows in 2025, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting cash generation concerns. The free cash flow to net income ratio is also negative, suggesting difficulties in generating cash from operations.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 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: Neutral
• Last Price: 527.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 527 is below the 20-day moving average (MA) of 546.45, below the 50-day MA of 542.84, and below the 200-day MA of 530.72, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of 35.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3461.

Palma Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7805	77 Outperform	¥3.56B	7.45	―	1.93%	-1.00%	105.56%
3958	70 Outperform	¥3.35B	13.65	―	3.30%	-3.41%	-24.95%
7919	66 Neutral	¥3.66B	10.58	―	3.69%	0.62%	-24.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3461	63 Neutral	¥3.68B	28.74	―	2.25%	-17.73%	51.27%
7916	61 Neutral	¥5.78B	19.83	―	2.72%	-1.30%	―
3948	53 Neutral	¥7.18B	45.73	―	2.94%	-2.81%	57.37%