POVAL KOGYO CO.LTD. (4247) AI Stock Analysis

• Market Cap: ¥3.28B
• Dividend Yield: 3.05%
• Average Volume (3M): 500.00
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.33
• Revenue Growth: 7.64%
• EPS Growth: 37.45%
• Country: JP
• Employees: 196
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 41.24
• Shares Outstanding: 2,634,800
• 10 Day Avg. Volume: 350
• 30 Day Avg. Volume: 500
• PEG Ratio: -0.69
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.93
• P/FCF Ratio: -120.18
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,459.00 ▲(13.19% Upside)

POVAL KOGYO CO.LTD. demonstrates strong technical momentum and a solid financial foundation, particularly in balance sheet stability. However, concerns about high valuation and declining growth metrics temper the overall outlook. The absence of recent earnings call data limits insights into management's strategic direction.

Positive Factors

Balance Sheet Stability

A strong balance sheet with low leverage enhances financial stability and provides flexibility for strategic investments and growth opportunities.

Operational Efficiency

Efficient operations that generate strong cash flows support ongoing business activities and investments, ensuring long-term sustainability.

Gross Profit Margins

Stable gross profit margins indicate effective cost management and pricing strategies, contributing to sustained profitability.

Negative Factors

Revenue Decline

Decreasing revenue growth suggests potential market challenges or competitive pressures, which could impact future earnings and market position.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to invest in growth or weather economic downturns.

Net Income Decline

A decline in net income growth can signal operational challenges or increased costs, affecting long-term profitability and shareholder value.

POVAL KOGYO CO.LTD. Business Overview & Revenue Model

Company Description

POVAL KOGYO CO.LTD. (4247) is a Japanese company specializing in the development and manufacturing of high-performance materials and components, primarily focused on the electronics and automotive sectors. The company is known for its innovative solutions in the production of electronic parts, including semiconductors and insulating materials, catering to the needs of various industries for enhanced performance and reliability.

How the Company Makes Money

POVAL KOGYO generates revenue through the sale of its specialized electronic components and materials to manufacturers in the electronics and automotive industries. The company's revenue model is based on direct sales of its products, which are often customized to meet specific client requirements. Key revenue streams include bulk orders from large corporations, long-term supply contracts, and partnerships with research institutions for the development of new technologies. Additionally, the company may benefit from government contracts and subsidies aimed at promoting technological advancements, which can further enhance its earnings.

POVAL KOGYO CO.LTD. Financial Statement Overview

Summary

POVAL KOGYO CO.LTD. maintains a solid financial position with strengths in balance sheet stability and operational efficiency. However, the decline in revenue and net income growth, coupled with negative free cash flow, indicates areas of concern that need strategic attention to sustain long-term growth and financial health.

Income Statement

POVAL KOGYO CO.LTD. has demonstrated strong stability in its income statement with consistent gross profit margins and positive net income. However, there is a noticeable decline in net income and revenue growth rate in recent periods, indicating potential challenges in maintaining previous growth levels.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio, indicating minimal leverage. The equity ratio is high, reflecting strong equity financing. However, there has been a slight decrease in stockholders' equity over the periods, warranting attention.

Cash Flow

Cash flow statements reveal robust operating cash flows, but free cash flow has been negative recently due to high capital expenditures. This could pose liquidity challenges if not managed effectively. The operating cash flow to net income ratio remains healthy, suggesting operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.46B	3.38B	3.59B	3.57B	3.48B	3.25B
Gross Profit	1.25B	1.19B	1.26B	1.31B	1.29B	1.21B
EBITDA	377.53M	287.09M	422.71M	536.97M	513.11M	459.83M
Net Income	124.81M	80.50M	185.68M	256.16M	279.84M	211.76M
Balance Sheet
Total Assets	6.85B	7.15B	6.88B	6.65B	6.52B	6.23B
Cash, Cash Equivalents and Short-Term Investments	756.00M	1.03B	834.42M	1.22B	1.24B	1.15B
Total Debt	220.00M	220.00M	20.00M	20.00M	20.00M	20.00M
Total Liabilities	1.17B	1.43B	1.15B	1.11B	1.16B	1.07B
Stockholders Equity	5.67B	5.71B	5.71B	5.52B	5.34B	5.14B
Cash Flow
Free Cash Flow	0.00	-26.15M	-326.62M	43.44M	160.76M	-38.76M
Operating Cash Flow	0.00	483.07M	456.20M	213.15M	313.51M	330.51M
Investing Cash Flow	0.00	-386.14M	-765.07M	-143.04M	-146.53M	-461.97M
Financing Cash Flow	0.00	101.20M	-96.90M	-97.86M	-81.67M	-79.14M

POVAL KOGYO CO.LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1289.00
• 50DMA: Positive
• 100DMA: Positive
• 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:4247, the sentiment is Positive. The current price of 1289 is above the 20-day moving average (MA) of 1286.95, above the 50-day MA of 1256.76, and above the 200-day MA of 1190.75, indicating a bullish trend. The MACD of 13.54 indicates Negative momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 73.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4247.

POVAL KOGYO CO.LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8138	79 Outperform	¥3.98B	4.81	―	2.22%	4.29%	240.24%
4625	78 Outperform	¥3.61B	12.88	―	2.47%	1.79%	31.63%
4247	75 Outperform	¥3.28B	26.10	―	3.05%	7.64%	37.45%
4120	71 Outperform	¥3.13B	10.52	―	3.06%	1.14%	50.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
7446	58 Neutral	¥3.51B	8.44	―	3.29%	7.11%	80.59%
5103	52 Neutral	¥3.56B	-13.49	―	―	-3.45%	56.08%