Pacific Metals Co., Ltd. (5541) AI Stock Analysis

• Market Cap: ¥66.34B
• Dividend Yield: 9.18%
• Average Volume (3M): 369.32K
• Price to Earnings (P/E): 69.3
• Beta (1Y): 0.61
• Revenue Growth: -35.81%
• EPS Growth: -138.00%
• Country: JP
• Employees: 459
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 98.07
• Shares Outstanding: 19,577,072
• 10 Day Avg. Volume: 482,260
• 30 Day Avg. Volume: 369,320
• PEG Ratio: -0.36
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 2.53
• P/FCF Ratio: 13.38
• 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: 50 Neutral
• Price Target: ¥3,815.00 ▲(44.51% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by weak financial performance (declining revenue and persistent negative margins). Technicals are supportive with strong trend and positive MACD, but overbought signals raise near-term risk. Valuation is a mixed picture: a very high P/E weighs on the score despite an attractive dividend yield.

Positive Factors

Structural EV/battery demand

Exposure to EV and battery supply chains supports sustained demand for nickel and cobalt; this structural market tailwind can underpin long-term revenue opportunities as electrification and renewables expand, reducing reliance on short-term metal price cycles.

Low leverage and stable equity

Low debt-to-equity and a stable equity base provide financial flexibility to fund operations, withstand commodity price swings, and invest in processing capacity or sustainability initiatives. Lower leverage reduces default risk and supports multi‑period strategic moves.

Improving free cash flow

Recent improvement in free cash flow and a positive operating cash flow to net income ratio enhance the firm's ability to self-fund capex, manage liabilities, and maintain payouts. Better cash conversion supports longer-term investments even with slow margin recovery.

Negative Factors

Declining revenue

Material revenue decline over recent years shrinks scale and weakens economies of scale, reducing bargaining power with suppliers and customers. Persistently falling top-line undermines investment capacity and makes strategic recovery dependent on external demand improvements.

Persistent negative margins

Negative gross, EBIT, EBITDA and net margins point to structural cost or pricing pressures; sustained unprofitability erodes shareholder equity, limits reinvestment, and heightens sensitivity to metal price cycles. Restoring margins is critical for durable financial health.

Inconsistent cash flow performance

Inconsistent free cash flow performance complicates capital allocation and increases execution risk. Variable cash generation limits strategic investments, dividend reliability, and the firm’s ability to absorb prolonged commodity downturns, constraining medium-term planning.

Pacific Metals Co., Ltd. Business Overview & Revenue Model

Company Description

Pacific Metals Co., Ltd. produces and sells ferro-nickel and ferro-nickel slag products in Japan and internationally. The company offers ferro-nickel that is used as a raw material for stainless steel; and mineral slag products. It is also involved in waste recycling business. In addition, the company purchases and sells cast forged steel products and various industrial machinery. Pacific Metals Co., Ltd. was founded in 1949 and is based in Hachinohe, Japan.

How the Company Makes Money

Pacific Metals generates revenue primarily through the extraction, processing, and sale of nickel and cobalt products. The company capitalizes on global demand for these metals, particularly from the battery and automotive sectors, as electric vehicles and renewable energy technologies become more prevalent. Key revenue streams include sales of refined nickel and cobalt products to manufacturers and industrial clients. Additionally, Pacific Metals may engage in long-term contracts with strategic partners, ensuring a stable income flow. The company's financial performance is also influenced by fluctuations in commodity prices, production efficiency, and demand from key markets, including Asia and Europe.

Pacific Metals Co., Ltd. Financial Statement Overview

Summary

Income statement weakness (declining revenue and negative gross/EBIT/EBITDA/net margins) drives a low score, partially offset by low leverage, a stable equity base, and some improvement in free cash flow despite inconsistency.

Income Statement

Pacific Metals Co., Ltd. has experienced declining revenue over recent years, with a significant drop in total revenue from 2022 to 2025. The company has struggled with negative gross and net profit margins, indicating challenges in cost management and profitability. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company maintains a low debt-to-equity ratio, suggesting limited leverage and potential financial stability. However, the return on equity has been negative in recent years, indicating poor profitability relative to shareholder equity. The equity ratio remains stable, showing a strong equity base compared to total assets.

Cash Flow

Despite negative free cash flow in earlier years, Pacific Metals has shown improvement in free cash flow growth, particularly in the most recent period. The operating cash flow to net income ratio is positive, indicating some ability to generate cash from operations. However, the overall cash flow performance remains inconsistent.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.59B	13.18B	15.52B	34.85B	57.13B	32.22B
Gross Profit	-7.36B	-5.19B	-7.12B	-10.29B	8.17B	2.16B
EBITDA	-3.45B	-886.00M	-8.76B	-3.96B	5.06B	1.79B
Net Income	-4.20B	-1.67B	-1.07B	-5.03B	11.37B	1.16B
Balance Sheet
Total Assets	62.63B	71.80B	73.79B	78.83B	89.85B	75.48B
Cash, Cash Equivalents and Short-Term Investments	17.50B	26.47B	23.96B	18.35B	29.33B	24.49B
Total Debt	17.00M	16.00M	22.00M	6.00M	7.00M	4.00M
Total Liabilities	4.07B	4.14B	4.73B	6.79B	9.70B	8.47B
Stockholders Equity	58.28B	67.39B	68.79B	71.75B	79.87B	66.74B
Cash Flow
Free Cash Flow	0.00	2.49B	2.23B	-8.59B	6.42B	5.50B
Operating Cash Flow	0.00	3.01B	2.79B	-7.52B	7.86B	5.83B
Investing Cash Flow	0.00	-153.00M	2.00B	974.00M	-2.91B	-1.78B
Financing Cash Flow	0.00	-7.00M	-5.00M	-3.01B	-785.00M	-102.00M

Pacific Metals Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2640.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5541, the sentiment is Positive. The current price of 2640 is below the 20-day moving average (MA) of 3110.35, below the 50-day MA of 2810.78, and above the 200-day MA of 2144.36, indicating a bullish trend. The MACD of 167.35 indicates Negative momentum. The RSI at 78.59 is Negative, neither overbought nor oversold. The STOCH value of 87.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5541.

Pacific Metals Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5715	76 Outperform	¥188.96B	13.60	11.58%	1.62%	9.81%	30.20%
5726	71 Outperform	¥113.89B	22.86	―	1.38%	-3.56%	-30.17%
5727	67 Neutral	¥198.64B	78.62	5.78%	1.49%	0.82%	-1.72%
5711	66 Neutral	¥784.66B	36.87	2.14%	2.83%	-0.64%	-65.65%
5714	66 Neutral	¥687.26B	31.40	5.02%	2.12%	-7.98%	-42.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5541	50 Neutral	¥66.34B	69.31	―	9.18%	-35.81%	-138.00%

Pacific Metals Co., Ltd. Corporate Events

Pacific Metals Returns to Profit but Keeps Cautious Outlook Amid Falling Sales

Pacific Metals Co., Ltd. reported a sharp 37% year-on-year decline in net sales to ¥6.75 billion for the nine months ended December 31, 2025, but swung to a profit attributable to owners of the parent of ¥687 million from a loss of ¥1.76 billion a year earlier, aided by an improvement in ordinary profit despite continued operating losses. The company’s financial position remains solid with an equity ratio above 93%, and it maintained an aggressive shareholder return stance, paying an interim dividend of ¥60 per share and projecting a full-year dividend of ¥120, even as it forecasts a 30.6% drop in full-year net sales and a full-year net loss due to a projected operating loss of ¥6.51 billion, underscoring ongoing earnings pressure amid a challenging market environment.

The most recent analyst rating on (JP:5541) stock is a Hold with a Yen3133.00 price target. To see the full list of analyst forecasts on Pacific Metals Co., Ltd. stock, see the JP:5541 Stock Forecast page.

Pacific Metals Lifts Full-Year Outlook on Strong Equity-Method Gains and Higher Ferronickel Sales

Pacific Metals Co., Ltd. has booked ¥5,981 million in non-operating income for the nine months to December 31, 2025, reflecting strong profit contributions from equity-method affiliates in the Philippines amid robust demand. In response to this performance and updated market assumptions, the company has raised its full-year net sales and ordinary profit forecasts for the fiscal year ending March 31, 2026, shifting from a previously projected ordinary loss to an expected ordinary profit, while narrowing the anticipated net loss as earnings are aided by higher ferronickel sales volume and equity-method income but remain pressured by high raw material, fuel and electricity costs and continued global macroeconomic uncertainty, including potential supply chain and demand risks from U.S. tariff policy and geopolitical tensions.

The most recent analyst rating on (JP:5541) stock is a Hold with a Yen3171.00 price target. To see the full list of analyst forecasts on Pacific Metals Co., Ltd. stock, see the JP:5541 Stock Forecast page.

Pacific Metals Reports No Major Impact from Aomori Earthquake

Pacific Metals Co., Ltd. reported no significant operational impact from the recent earthquake off the east coast of Aomori Prefecture, which affected their Hachinohe Head Office and Manufacturing Plant. The company has confirmed no casualties or major damage and will provide updates if the situation changes, ensuring stakeholders are informed of any potential disruptions.

The most recent analyst rating on (JP:5541) stock is a Hold with a Yen2638.00 price target. To see the full list of analyst forecasts on Pacific Metals Co., Ltd. stock, see the JP:5541 Stock Forecast page.