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

• Market Cap: ¥39.21B
• Dividend Yield: 8.43%
• Average Volume (3M): 369.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.34
• Revenue Growth: -35.81%
• EPS Growth: -138.00%
• Country: JP
• Employees: 459
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 57.76
• 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): -6,394.26
• Revenue Forecast (FY): ¥2.29T

• Rating: 59 Neutral
• Price Target: ¥2,638.00 ▲(14.00% Upside)

The overall stock score is primarily influenced by strong technical indicators, suggesting bullish momentum. However, financial performance issues, including negative profitability and inconsistent cash flow, weigh down the score. The high dividend yield provides some valuation appeal, but the negative P/E ratio highlights ongoing earnings challenges.

Positive Factors

Vertically Integrated Model

This model enhances profitability by reducing costs and improving efficiency, providing a competitive edge in the metals market.

Sustainable Practices

Commitment to sustainability can improve brand reputation and align with regulatory trends, benefiting long-term business operations.

Strategic Partnerships

Such partnerships can enhance market reach and innovation, supporting revenue growth and competitive positioning.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, potentially impacting long-term growth.

Negative Profit Margins

Negative margins reflect cost management issues, affecting profitability and financial health over the long term.

Operational Inefficiencies

Operational inefficiencies can hinder profitability and competitiveness, requiring strategic improvements for sustainable success.

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

Company Description

Pacific Metals Co., Ltd. (5541) is a prominent player in the metal processing and manufacturing industry, primarily focused on the production of high-quality nickel and cobalt products. The company operates within the mining and metallurgy sectors, supplying essential raw materials for various applications, including battery production, stainless steel manufacturing, and other industrial uses. With a commitment to sustainability and innovation, Pacific Metals emphasizes environmentally responsible practices while delivering reliable metal solutions to its clients worldwide.

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

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	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: 2314.00
• 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 2314 is above the 20-day moving average (MA) of 2277.90, above the 50-day MA of 2119.01, and above the 200-day MA of 1820.17, indicating a bullish trend. The MACD of 68.03 indicates Positive momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 25.51 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
5715	76 Outperform	¥143.21B	9.41	11.58%	1.52%	9.81%	30.20%
5714	69 Neutral	$333.16B	15.33	5.02%	2.46%	-7.98%	-42.51%
5726	67 Neutral	¥76.98B	12.66	―	1.20%	-3.56%	-30.17%
5711	66 Neutral	¥420.94B	28.27	2.14%	3.10%	-0.64%	-65.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5541	59 Neutral	¥39.21B	―	―	8.43%	-35.81%	-138.00%
5727	58 Neutral	$88.11B	25.61	5.78%	1.55%	0.82%	-1.72%

Pacific Metals Co., Ltd. Corporate Events

Pacific Metals Reports Decline in Financial Performance for H1 2025

Pacific Metals Co., Ltd. reported a significant decline in its financial performance for the six months ending September 30, 2025, with net sales dropping by 43% compared to the previous year. The company also experienced operating and ordinary losses, reflecting challenges in the market. Despite these setbacks, the company maintains a strong equity ratio, indicating a stable financial position, and has announced a dividend payment plan for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:5541) stock is a Hold with a Yen2070.00 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 Co., Ltd. Announces Interim Dividend Payment

Pacific Metals Co., Ltd. announced a resolution to pay an interim dividend of 60 yen per share, with a total dividend amount of 1,043 million yen, effective December 3, 2025. This decision aligns with the company’s strategy to maintain a Dividend on Equity Ratio of 4% and utilize internal reserves for future business environment adaptations, technology development, and capital investments.

The most recent analyst rating on (JP:5541) stock is a Hold with a Yen2070.00 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 Revises Financial Forecasts Amid Market Fluctuations

Pacific Metals Co., Ltd. announced a reversal of inventory write-downs and a share of profit from entities using the equity method, leading to revised financial forecasts for the fiscal year ending March 31, 2026. The revisions reflect the company’s response to fluctuating market conditions, including high procurement costs and global economic uncertainties, impacting their profitability and operational strategies.

The most recent analyst rating on (JP:5541) stock is a Hold with a Yen2070.00 price target. To see the full list of analyst forecasts on Pacific Metals Co., Ltd. stock, see the JP:5541 Stock Forecast page.