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

• Market Cap: ¥35.19B
• Dividend Yield: 6.67%
• Average Volume (3M): 415.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• Revenue Growth: -21.40%
• EPS Growth: -637.50%
• Country: JP
• Employees: 459
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Industrial Materials
• EPS (TTM): -117.67
• Shares Outstanding: 19,577,072
• 10 Day Avg. Volume: 410,960
• 30 Day Avg. Volume: 415,300
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥2,070.00
• Price Target Upside: 2.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: ¥2,070.00 ▲(2.27% Upside)

The overall stock score is primarily influenced by the company's financial challenges, including negative profitability and inconsistent cash flow. However, positive technical indicators and a high dividend yield provide some support. The absence of earnings call and corporate events data limits the analysis to these factors.

Positive Factors

Vertically Integrated Model

A vertically integrated model allows Pacific Metals to enhance profitability by controlling costs and ensuring quality across the supply chain, providing a competitive advantage in the metal and mining sector.

Sustainable Practices

Commitment to sustainability can improve long-term viability and appeal to environmentally conscious investors and clients, potentially leading to stronger partnerships and market positioning.

Strategic Partnerships

Strategic partnerships can enhance market reach, facilitate technology sharing, and improve production efficiency, supporting long-term growth and competitive positioning in the industry.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share or pricing power, which can impact long-term growth prospects and financial health if not addressed.

Negative Profit Margins

Negative profit margins reflect difficulties in cost management and operational efficiency, which can hinder profitability and limit reinvestment opportunities for growth.

Inconsistent Cash Flow

Inconsistent cash flow can strain financial flexibility, affecting the company's ability to invest in growth initiatives or weather economic downturns, posing a risk to long-term stability.

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

Company Description

Pacific Metals Co., Ltd. (5541) is a leading company in the metal and mining sector, primarily engaged in the production and processing of non-ferrous metals, including nickel, cobalt, and copper. The company operates in various segments, leveraging advanced technologies to enhance its extraction and refining processes. With a strong focus on sustainable practices, Pacific Metals is committed to minimizing environmental impacts while maximizing resource efficiency.

How the Company Makes Money

Pacific Metals generates revenue primarily through the sale of processed non-ferrous metals such as nickel and cobalt, which are critical components in various industries including electronics, batteries, and stainless steel production. The company operates a vertically integrated model, controlling the supply chain from mining to refining, which enhances profitability. Key revenue streams include direct sales to manufacturers and distributors, long-term contracts with industrial clients, and participation in global metal markets. Additionally, Pacific Metals benefits from strategic partnerships with other industry players and investment in innovative technologies that improve production efficiency and reduce costs.

Pacific Metals Co., Ltd. Financial Statement Overview

Summary

Pacific Metals Co., Ltd. faces significant challenges in profitability and revenue growth, with negative margins and declining revenue. Despite low leverage and a strong equity base, the company struggles with operational inefficiencies and inconsistent cash flow performance.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.18B	13.18B	15.52B	34.85B	57.13B	32.22B
Gross Profit	-5.19B	-5.19B	-7.12B	-10.29B	8.17B	2.16B
EBITDA	-896.00M	-886.00M	-8.76B	-3.96B	13.14B	1.79B
Net Income	-1.67B	-1.67B	-1.07B	-5.03B	11.37B	1.16B
Balance Sheet
Total Assets	71.80B	71.80B	73.79B	78.83B	89.85B	75.48B
Cash, Cash Equivalents and Short-Term Investments	26.47B	26.47B	23.96B	18.35B	29.33B	24.49B
Total Debt	16.00M	16.00M	22.00M	6.00M	7.00M	4.00M
Total Liabilities	4.14B	4.14B	4.73B	6.79B	9.70B	8.47B
Stockholders Equity	67.39B	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: 2024.00
• 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:5541, the sentiment is Positive. The current price of 2024 is above the 20-day moving average (MA) of 2013.00, above the 50-day MA of 1893.56, and above the 200-day MA of 1650.81, indicating a bullish trend. The MACD of 48.96 indicates Positive momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 25.47 is Neutral, 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
Sector *	61 Neutral	$10.48B	7.52	-0.05%	2.87%	2.87%	-36.73%
5541	56 Neutral	¥35.19B	―		6.67%	-21.40%	-637.50%
DWMNF	―	$2.20B	15.24	5.76%	2.76%	―	―
MIMTF	―	$2.29B	36.42	1.33%	4.25%	―	―
TTNNF	―	$785.46M	45.33	4.87%	1.15%	―	―
FUR	―	€635.51M	5.25	15.20%	―	―	―
5726	74 Outperform	¥85.81B	19.16		1.76%	-3.92%	-53.69%

Pacific Metals Co., Ltd. Corporate Events

Pacific Metals Unveils PAMCOvision 2031 Strategy Amid Market Challenges

Pacific Metals Co., Ltd. has announced PAMCOvision 2031, a medium to long-term strategy aimed at restructuring its business portfolio in response to market challenges and sustainability issues. The company plans to diversify into new business areas to enhance growth and corporate value, although it anticipates a slow improvement in business results initially due to the shift in its business model.

Pacific Metals Revises Financial Forecast Amid Inventory and Income Adjustments

Pacific Metals Co., Ltd. has announced a reversal of inventory write-downs and an increase in non-operating income due to strong performance in the Philippines, leading to a revised financial forecast for the fiscal year ending March 31, 2025. Despite challenges such as high procurement costs and a stagnant real estate market in China, the company is adjusting its strategy under its ‘Medium to Long-term Strategy PAMCOvision 2031’ to mitigate losses and improve profitability.

Pacific Metals Announces Change in Major Shareholder

Pacific Metals Co., Ltd. announced a change in its major shareholder, Nippon Steel Stainless Steel Corporation, which reduced its shareholding from 10.54% to 9.99% due to the sale of common stock. This change in shareholder composition is not expected to have any significant impact on the company’s future outlook or operations.

Pacific Metals Co., Ltd. Revises Dividend Policy and Forecast Amid Strategic Shift

Pacific Metals Co., Ltd. has announced a change in its dividend policy to introduce a dividend on equity ratio (DOE) of 4%, replacing the previous target payout ratio of 30%. This change is part of a broader strategy to address challenges in its nickel business and focus on business diversification and strengthening its revenue platform. The company aims to use internal reserves for new business investments and shareholder returns, with a revised year-end dividend forecast of 135 yen per share for the fiscal year ending March 31, 2025, up from a previous forecast of 0.00 yen.

Pacific Metals Reports Strong Non-Operating Income Boost

Pacific Metals Co., Ltd. reported a non-operating income of 3,762 million yen for the nine months ended December 31, 2024, driven by strong performance from its equity-method affiliates in the Philippines. This income positively impacts the company’s consolidated financial results for the fiscal year ending March 31, 2025, reflecting robust demand and strategic investments in its affiliate entities.

Pacific Metals Co., Ltd. Reports Decline in Financial Performance for 2024

Pacific Metals Co., Ltd. reported a decline in net sales and profits for the nine months ending December 31, 2024, compared to the same period in the previous year. Despite the downturn, the company’s equity ratio remains stable, highlighting its financial resilience. The financial forecast for the fiscal year ending March 31, 2025, indicates continued challenges in achieving profitability, with anticipated declines in net sales and operating profits.