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

• Market Cap: ¥51.09B
• Dividend Yield: 9.18%
• Average Volume (3M): 369.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• 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: ¥3,063.00 ▲(16.02% 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

Structural demand exposure

Pacific Metals' core business supplies nickel and cobalt used in batteries, EVs and industrial stainless steel. This alignment with multi-year electrification and renewable energy trends supports structurally durable end-market demand, underpinning revenue potential over the coming 2–6 months and beyond.

Low financial leverage

A low debt-to-equity ratio and a strong equity base provide financial flexibility to fund maintenance, process improvements or downturns without aggressive refinancing. That balance-sheet strength helps the firm weather commodity cycles and supports longer-term operational stability.

Improving cash generation

Recent improvement in free cash flow growth and positive operating-cash-flow to net-income indicate the business is beginning to convert operations into cash more reliably. Sustained FCF recovery would support reinvestment, working capital and optionality for strategic initiatives.

Negative Factors

Declining revenue trend

A multiyear decline in revenue reduces scale and pricing power and hampers the firm’s ability to absorb fixed costs. Persistent top-line contraction undermines long-term investment capacity and raises execution risk for returning margins to sustainably positive levels.

Negative profit margins

Sustained negative gross and net margins point to structural cost or pricing weaknesses and operational inefficiencies. Without margin recovery, profitability cannot sustain reinvestment or returns to shareholders, and the business remains vulnerable to price or cost shocks.

Negative return on equity

Negative ROE signals the company is not generating acceptable returns on invested capital, limiting its ability to attract capital and justify equity. Continued negative ROE constrains long-term growth funding and raises questions about capital allocation effectiveness.

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

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: 2640.00
• 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 2640 is below the 20-day moving average (MA) of 2816.35, above the 50-day MA of 2480.88, and above the 200-day MA of 2000.25, indicating a bullish trend. The MACD of 158.63 indicates Positive momentum. The RSI at 65.06 is Neutral, neither overbought nor oversold. The STOCH value of 73.17 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	77 Outperform	¥167.86B	11.04	11.58%	1.62%	9.81%	30.20%
5726	71 Outperform	¥84.56B	13.90	―	1.38%	-3.56%	-30.17%
5727	68 Neutral	¥132.45B	38.50	5.78%	1.49%	0.82%	-1.72%
5714	64 Neutral	¥548.26B	27.12	5.02%	2.12%	-7.98%	-42.51%
5711	63 Neutral	¥581.11B	39.03	2.14%	2.83%	-0.64%	-65.65%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5541	59 Neutral	¥51.09B	-70.80	―	9.18%	-35.81%	-138.00%

Pacific Metals Co., Ltd. Corporate Events

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.

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.