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

• Market Cap: ¥3.76B
• Dividend Yield: 2.98%
• Average Volume (3M): 500.00
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.37
• Revenue Growth: 7.64%
• EPS Growth: 37.45%
• Country: JP
• Employees: 196
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 36.86
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥1,604.00 ▲(19.88% Upside)
• Action: Reiterated Date: 11/06/25
• Date: Action: Reiterated 11/06/25

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

Strong balance sheet

Low leverage and a high equity ratio provide durable financial resilience, enabling the company to absorb cyclical shocks, fund operations or strategic investments without excessive borrowing, and maintain financial flexibility over the next several months.

Robust operating cash flow

Healthy operating cash generation and a strong operating-cash-flow-to-net-income ratio indicate quality earnings and internal funding capacity, supporting working capital and investment needs and reducing reliance on external financing over the medium term.

Stable margins and profitability

Sustained gross margins and recurring net income point to operational efficiency and pricing or cost advantages that support continued profitability, allowing reinvestment in the business and helping preserve cash flow under typical market conditions.

Negative Factors

Negative free cash flow

Persistently negative free cash flow driven by elevated capex can erode liquidity and force external financing or capital allocation trade-offs, constraining dividends, buybacks, or strategic investments if capex does not translate into higher sustainable returns.

Declining revenue and net income growth

A downward trend in revenue and net income growth erodes the company’s ability to expand margins and invest for the future; if structural, this reduces long-term return potential and signals competitive or demand challenges that need management action.

Slight decrease in equity

A declining shareholders' equity balance, even modest, shrinks the capital buffer available for downturns and can limit borrowing capacity; continued erosion would weaken financial flexibility and heighten funding risk over time.

POVAL KOGYO CO.LTD. Business Overview & Revenue Model

Company Description

POVAL KOGYO Co., Ltd. manufactures and sells special and resin belts in Japan. The company provides belt-related products, including special conveyor, functional, drive, and urethane timing belts; polishing-related products, such as polishing pads; and mounts and cushioning components that are used in polishing glass; and other products comprising nonwoven fabrics and urethane foam products. POVAL KOGYO Co., Ltd. was founded in 1957 and is headquartered in Nagoya, Japan.

How the Company Makes Money

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.46B	3.38B	3.59B	3.57B	3.48B	3.25B
Gross Profit	1.26B	1.19B	1.26B	1.31B	1.29B	1.21B
EBITDA	432.88M	382.60M	444.72M	514.08M	495.74M	447.79M
Net Income	125.67M	80.50M	185.68M	256.16M	279.84M	211.76M
Balance Sheet
Total Assets	6.85B	7.15B	6.88B	6.65B	6.61B	6.33B
Cash, Cash Equivalents and Short-Term Investments	756.44M	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	1.25B	1.17B
Stockholders Equity	5.67B	5.71B	5.71B	5.52B	5.34B	5.14B
Cash Flow
Free Cash Flow	0.00	-26.15M	-326.36M	46.17M	162.80M	-38.65M
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: 1338.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 1338 is below the 20-day moving average (MA) of 1430.70, below the 50-day MA of 1404.96, and above the 200-day MA of 1275.27, indicating a neutral trend. The MACD of 2.19 indicates Positive momentum. The RSI at 51.51 is Neutral, neither overbought nor oversold. The STOCH value of 97.97 is Negative, 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
4116	76 Outperform	¥79.56B	6.04	―	3.04%	1.57%	-33.97%
4362	75 Outperform	¥55.60B	16.36	―	2.92%	3.03%	28.27%
4619	75 Outperform	¥49.76B	8.18	―	5.04%	-3.21%	27.18%
4247	75 Outperform	¥3.76B	9.07	―	2.98%	7.64%	37.45%
4113	69 Neutral	¥13.71B	16.46	―	3.23%	13.09%	89.45%
4968	62 Neutral	¥26.13B	9.97	―	4.27%	5.72%	28.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%