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

• Market Cap: ¥34.48B
• Dividend Yield: 6.8%
• Average Volume (3M): 348.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -21.40%
• EPS Growth: -637.50%
• Country: JP
• Employees: 459
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Industrial Materials
• EPS (TTM): -117.67
• Shares Outstanding: 19,577,072
• 10 Day Avg. Volume: 410,510
• 30 Day Avg. Volume: 348,830
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 48 Neutral
• Price Target: ―

Pacific Metals Co., Ltd. faces significant financial challenges with declining revenues and negative profitability. The strong equity base is a positive aspect, but operational challenges are a major concern. Technical indicators show mixed signals, while valuation metrics are impacted by negative earnings, although the high dividend yield offers some appeal. These factors result in a below-average stock score.

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

Company Description

Pacific Metals Co., Ltd. is a Japan-based company primarily engaged in the production and sales of ferronickel and other metal products. The company operates in the non-ferrous metal industry, focusing on mining, smelting, and refining operations. Its core products include ferronickel and nickel ore, which are essential materials for the manufacturing of stainless steel and other alloys.

How the Company Makes Money

Pacific Metals Co., Ltd. generates revenue primarily through the production and sale of ferronickel, a key material used in the stainless steel industry. The company sources nickel ore from its own mining operations and third-party suppliers, which it then processes in its smelting and refining facilities to produce ferronickel. This product is sold to manufacturers of stainless steel and other metal alloys. Additionally, the company may engage in strategic partnerships and maintain long-term contracts with major steel producers to ensure stable demand and pricing. Fluctuations in global nickel prices and demand for stainless steel significantly impact the company's earnings.

Pacific Metals Co., Ltd. Financial Statement Overview

Summary

Pacific Metals Co., Ltd. is facing significant financial challenges characterized by declining revenues, negative profitability, and cash flow issues. Despite a strong equity position and low leverage, the company's operational performance is under strain, impacting its overall financial health. The key risk lies in reversing negative profit trends and stabilizing cash flows to improve investor confidence.

Income Statement

Pacific Metals Co., Ltd. is experiencing declining revenues and negative profitability metrics. The TTM (Trailing-Twelve-Months) gross profit margin and net profit margin are negative, reflecting cost pressures and operational challenges. Significant revenue contraction from previous periods, including a sharp decline from 2022 to 2023, indicates a challenging market environment or operational inefficiencies.

Balance Sheet

The company maintains a strong equity base with low debt levels, resulting in a favorable debt-to-equity ratio of 0.0 in the TTM period. However, the return on equity (ROE) is negative due to substantial net losses, which is a concern for investors. The equity ratio indicates a high reliance on equity financing, which can be a double-edged sword in terms of financial strategy.

Cash Flow

Cash flow dynamics are unstable, with negative free cash flow in recent periods. The operating cash flow to net income ratio is not calculable in the TTM period due to zero operating cash flow, indicating cash management challenges. While the company had positive free cash flow in 2022, recent trends show a decline, raising concerns over liquidity.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.18B	15.52B	34.85B	57.13B	32.22B
Gross Profit	-5.19B	-7.12B	-10.29B	8.17B	2.16B
EBITDA	-886.00M	-193.00M	-3.96B	5.06B	-115.00M
Net Income	-1.67B	-1.07B	-5.03B	11.37B	1.16B
Balance Sheet
Total Assets	71.80B	73.79B	78.83B	89.85B	75.48B
Cash, Cash Equivalents and Short-Term Investments	26.47B	23.96B	18.35B	29.33B	24.49B
Total Debt	0.00	22.00M	6.00M	7.00M	4.00M
Total Liabilities	4.14B	4.73B	6.79B	9.70B	8.47B
Stockholders Equity	67.39B	68.79B	71.75B	79.87B	66.74B
Cash Flow
Free Cash Flow	2.49B	2.23B	-8.59B	6.42B	5.50B
Operating Cash Flow	3.01B	2.79B	-7.52B	7.86B	5.83B
Investing Cash Flow	-153.00M	2.00B	974.00M	-2.91B	-1.78B
Financing Cash Flow	-7.00M	-5.00M	-3.01B	-785.00M	-102.00M

Pacific Metals Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1984.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 1984 is above the 20-day moving average (MA) of 1881.50, above the 50-day MA of 1799.04, and above the 200-day MA of 1596.35, indicating a bullish trend. The MACD of 38.61 indicates Negative momentum. The RSI at 69.89 is Neutral, neither overbought nor oversold. The STOCH value of 85.64 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
5703	76 Outperform	€120.46B	9.74	5.70%	3.72%	5.43%	23.72%
5706	73 Outperform	$528.18B	14.42	11.71%	1.77%	6.34%	-19.70%
Sector *	70 Outperform	¥183.51B	11.39	5.69%	3.04%	2.62%	-12.22%
5714	68 Neutral	$301.98B	13.90	5.76%	2.93%	-9.15%	-31.58%
5713	53 Neutral	$1.03T	46.94	1.31%	2.76%	5.12%	-63.31%
5541	48 Neutral	¥34.48B	―		6.80%	-21.40%	-637.50%
5707	47 Neutral	$8.72B	―	-82.83%	―	-12.02%	88.82%

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.