Pola Orbis Holdings (4927) AI Stock Analysis

• Market Cap: ¥283.95B
• Dividend Yield: 3.25%
• Average Volume (3M): 414.45K
• Price to Earnings (P/E): 38.0
• Beta (1Y): 0.23
• Revenue Growth: -0.74%
• EPS Growth: -25.66%
• Country: JP
• Employees: 4,021
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Household & Personal Products
• EPS (TTM): 5.92
• Shares Outstanding: 229,136,150
• 10 Day Avg. Volume: 551,690
• 30 Day Avg. Volume: 414,446
• PEG Ratio: -14.67
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 99.18
• 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: ¥1,249.82
• Price Target Upside: -2.62% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 66 Neutral
• Price Target: ¥1,436.00 ▲(11.88%Upside)

Pola Orbis Holdings scores moderately due to its solid financial foundation and robust balance sheet. However, challenges in revenue growth and profitability, coupled with a high valuation, weigh on the overall score. The technical analysis indicates mixed signals, with some short-term pressure but potential for momentum. The attractive dividend yield partially offsets the high P/E ratio.

Pola Orbis Holdings Business Overview & Revenue Model

Company Description

Pola Orbis Holdings Inc., through its subsidiaries, develops, manufactures, and sells cosmetics and related products in Japan and internationally. It operates through Beauty Care and Real Estate segments. The Beauty Care segment offers cosmetics; skincare products; health foods; and fashion products, such as women's underwear, women's apparel, and jewelry under the POLA, ORBIS, Jurlique, H2O PLUS, THREE, DECENCIA, Amplitude, ITRIM, FIVEISM × THREE, and FUJIMI brand names. The Real Estate segment is involved in the leasing of office buildings and residential properties. The company also involves in the management and operation of buildings. It sells its products through department, directly operated retail, duty-free stores, Internet, and cosmetics stores, as well as through door-to-door sales, and mail-order sales. The company was founded in 1929 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Pola Orbis Holdings generates revenue through the sale of its beauty and personal care products across several brands. The company's primary revenue streams include domestic and international retail sales, e-commerce, and direct sales through its extensive network of beauty consultants. Pola Orbis Holdings leverages its strong brand portfolio to target various segments of the beauty market, from luxury skincare to everyday cosmetics. Additionally, the company invests heavily in research and development to innovate and create new products, which helps drive sales growth. Strategic partnerships and collaborations with other companies in the beauty and fashion industries also contribute to its revenue, expanding its market reach and enhancing brand visibility.

Pola Orbis Holdings Financial Statement Overview

Summary

The company exhibits strong gross margins and a robust balance sheet with low leverage. However, challenges persist in revenue growth and profitability, with declining net profit margins and negative revenue growth being notable issues. Cash flow improvements are promising, but managing capital expenditures and financing will be key.

Income Statement

The income statement shows a mixed performance. Gross profit margin remains strong at approximately 81.3% for 2024, indicating effective cost control and pricing strategy. However, the net profit margin for 2024 is relatively low at around 5.5%, down from 5.6% in 2023, suggesting potential challenges in converting revenue into profit. Revenue growth is negative at -1.7% in 2024, compared to a decline of -1.1% in 2023, reflecting a potential slowdown in sales growth. EBIT and EBITDA margins have also declined slightly, indicating a decrease in operational efficiency.

Balance Sheet

The balance sheet remains robust with a low debt-to-equity ratio of approximately 0.01, highlighting minimal leverage and financial risk. The equity ratio is high at about 82.3%, showcasing a strong capital base. Return on equity for 2024 is modest at 5.6%, reflecting a need for improved profitability. Overall, the company's financial position is stable with ample cash reserves, although profitability could be enhanced.

Cash Flow

Cash flow analysis indicates improvement in free cash flow, rising significantly in 2024 from a deficit in 2023. The operating cash flow to net income ratio is strong at 2.82, suggesting effective cash generation relative to reported profits. The free cash flow to net income ratio is favorable at 1.94, indicating strong cash conversion. However, fluctuations in capital expenditures and financing activities highlight potential areas of concern for long-term cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	170.36B	173.30B	166.31B	178.64B	176.31B
Gross Profit	138.51B	142.08B	135.27B	149.92B	146.33B
EBITDA	22.17B	23.18B	21.27B	25.09B	16.51B
Net Income	9.29B	9.66B	11.45B	11.73B	4.63B
Balance Sheet
Total Assets	200.32B	201.21B	205.94B	208.04B	203.74B
Cash, Cash Equivalents and Short-Term Investments	64.08B	65.14B	81.31B	92.57B	85.10B
Total Debt	2.12B	1.69B	1.88B	2.28B	2.44B
Total Liabilities	35.41B	32.81B	34.48B	34.77B	33.89B
Stockholders Equity	164.89B	168.05B	171.17B	173.05B	169.71B
Cash Flow
Free Cash Flow	18.01B	-1.81B	4.15B	16.63B	15.94B
Operating Cash Flow	26.18B	14.42B	15.55B	23.83B	23.39B
Investing Cash Flow	-12.10B	-18.73B	-12.37B	-2.17B	-3.34B
Financing Cash Flow	-13.38B	-12.38B	-12.67B	-9.10B	-27.13B

Pola Orbis Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1283.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4927, the sentiment is Negative. The current price of 1283.5 is below the 20-day moving average (MA) of 1312.75, below the 50-day MA of 1304.87, and below the 200-day MA of 1338.18, indicating a bearish trend. The MACD of -7.64 indicates Positive momentum. The RSI at 40.64 is Neutral, neither overbought nor oversold. The STOCH value of -8.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4927.

Pola Orbis Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	67 Neutral	£10.26B	6.03	4.94%	3.05%	-1.25%	2.65%
4927	66 Neutral	¥283.95B	38.02	4.49%	3.25%	-0.74%	-25.66%
KBYPF		$2.77B	39.02	5.17%	0.01%	―	―
KOSCF		$2.22B	59.66	2.08%	0.01%	―	―
LIOPF		$2.82B	19.80	7.58%	1.93%	―	―
4928	74 Outperform	¥144.48B	18.03		5.26%	1.51%	5.48%
4911	60 Neutral	¥988.73B	496.62		1.59%	-1.33%	-139.30%

Pola Orbis Holdings Corporate Events

Pola Orbis Holdings Revamps Shareholder Benefit Program to Boost Long-Term Engagement

Pola Orbis Holdings Inc. announced changes to its shareholder benefit program, effective from December 2026, to encourage long-term shareholding and enhance corporate value. The program will now require shareholders to hold shares continuously to receive benefits, with additional loyalty points awarded for extended ownership, aiming to foster greater shareholder engagement and loyalty.

The most recent analyst rating on (JP:4927) stock is a Hold with a Yen1450.00 price target. To see the full list of analyst forecasts on Pola Orbis Holdings stock, see the JP:4927 Stock Forecast page.

Pola Orbis Holdings to Liquidate Orbis Beijing Amid Strategic Shift

Pola Orbis Holdings Inc. announced the dissolution and liquidation of its subsidiary, Orbis Beijing, due to stagnant economic conditions in China and intense competition in the e-commerce market. This strategic move is part of the company’s broader plan to concentrate resources on more promising brands and regions, aiming for stable growth in its global business operations.

The most recent analyst rating on (JP:4927) stock is a Hold with a Yen1450.00 price target. To see the full list of analyst forecasts on Pola Orbis Holdings stock, see the JP:4927 Stock Forecast page.

Pola Orbis Holdings Faces Profit Decline Despite Sales Growth in Q1 2025

Pola Orbis Holdings reported a slight increase in net sales for the first quarter of fiscal 2025, with a 1% year-on-year growth. However, the company experienced a significant decline in profit attributable to owners of the parent, dropping by 58.1% compared to the previous year. The financial results indicate challenges in maintaining profitability despite stable sales, which may impact the company’s market positioning and stakeholder confidence.