Powdertech Co., Ltd. (5695) AI Stock Analysis

• Market Cap: ¥6.53B
• Dividend Yield: 6.33%
• Average Volume (3M): 760.00
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.26
• Revenue Growth: 4.80%
• EPS Growth: 97.52%
• Country: JP
• Employees: 263
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 17.23
• Shares Outstanding: 2,970,000
• 10 Day Avg. Volume: 560
• 30 Day Avg. Volume: 760
• PEG Ratio: 1.43
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 17.54
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥2,366.00 ▼(-0.17% Downside)

Powdertech Co., Ltd. demonstrates financial stability with a strong balance sheet and attractive dividend yield. However, the stock faces challenges with weak market momentum and potential overvaluation, impacting its overall attractiveness.

Positive Factors

Strong Balance Sheet

A strong equity base with low debt reliance enhances financial stability, providing Powdertech with resilience against economic fluctuations.

Cash Flow Improvement

Significant improvement in free cash flow indicates effective cash management, supporting future investments and operational flexibility.

Revenue Growth

Consistent revenue growth reflects Powdertech's ability to expand its market presence and adapt to industry demands, supporting long-term prospects.

Negative Factors

Declining Profit Margins

Decreasing EBIT margins suggest challenges in cost management, potentially impacting profitability and requiring strategic adjustments.

Low Return on Equity

A declining ROE indicates reduced profitability from shareholders' equity, which may affect investor confidence and necessitate efficiency improvements.

Profitability Challenges

A relatively low net profit margin highlights challenges in converting sales into profit, suggesting a need for operational enhancements to boost profitability.

Powdertech Co., Ltd. Business Overview & Revenue Model

Company Description

Powdertech Co., Ltd. (5695) is a leading provider of advanced powder coating solutions, specializing in the development and manufacturing of high-performance powder coatings for various industrial applications. The company operates primarily in the coatings sector, serving markets such as automotive, appliances, architecture, and general manufacturing. Powdertech is known for its commitment to innovation, sustainability, and quality, offering a diverse range of products that enhance durability and aesthetic appeal in coated surfaces.

How the Company Makes Money

Powdertech Co., Ltd. generates revenue primarily through the sale of its powder coating products to various industries. The company's revenue model includes direct sales to manufacturers and distributors, as well as customized solutions tailored to specific customer needs. Key revenue streams consist of bulk orders from large industrial clients, ongoing contracts for consistent supply, and specialty coatings for specific applications. Additionally, Powdertech may benefit from strategic partnerships with equipment manufacturers and distributors, enhancing its market reach and customer base. The company's focus on research and development also positions it to capitalize on emerging trends in eco-friendly and high-performance coatings, potentially increasing its market share and revenue over time.

Powdertech Co., Ltd. Financial Statement Overview

Summary

Powdertech Co., Ltd. shows moderate revenue growth and a strong balance sheet with low debt. However, challenges in profit margins and return on equity suggest areas for improvement in operational efficiency and profitability.

Income Statement

Powdertech Co., Ltd. has shown moderate revenue growth of 6.87% from 2024 to 2025. The gross profit margin stands at 23.23% while the net profit margin is at 3.48%, indicating a decent ability to convert sales into actual profit. However, the declining EBIT margin from 4.75% to 3.64% suggests potential challenges in managing operational costs.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 80.79% in 2025, reflecting strong financial stability and low reliance on debt, evidenced by a low debt-to-equity ratio of 0.06. However, return on equity (ROE) has decreased to 2.49%, highlighting a reduction in profitability from shareholders' equity.

Cash Flow

Powdertech Co., Ltd. experienced a significant improvement in free cash flow, turning positive in 2025 with a free cash flow growth rate of 280.41%. The operating cash flow to net income ratio is strong at 2.69, suggesting effective cash generation from operations. However, the free cash flow to net income ratio is 1.11, indicating room for improvement in cash efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.19B	9.14B	8.55B	8.83B	8.84B	7.71B
Gross Profit	2.17B	2.12B	2.02B	2.31B	2.60B	1.70B
EBITDA	1.12B	1.12B	1.08B	1.57B	1.84B	1.06B
Net Income	303.24M	318.42M	280.55M	544.19M	817.84M	172.77M
Balance Sheet
Total Assets	15.81B	15.82B	14.99B	14.74B	15.43B	14.09B
Cash, Cash Equivalents and Short-Term Investments	447.22M	2.80B	367.67M	3.15B	3.99B	3.26B
Total Debt	706.58M	714.70M	15.15M	14.91M	14.79M	7.85M
Total Liabilities	3.24B	3.03B	2.29B	2.09B	3.10B	2.35B
Stockholders Equity	12.57B	12.78B	12.70B	12.65B	12.33B	11.74B
Cash Flow
Free Cash Flow	0.00	352.88M	-195.61M	-628.23M	957.77M	-42.40M
Operating Cash Flow	0.00	856.86M	180.40M	648.14M	1.99B	1.01B
Investing Cash Flow	0.00	-504.26M	-378.01M	-1.26B	-1.04B	-1.04B
Financing Cash Flow	0.00	-275.71M	-235.59M	-234.71M	-234.35M	-474.31M

Powdertech Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2370.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5695, the sentiment is Positive. The current price of 2370 is above the 20-day moving average (MA) of 2285.85, above the 50-day MA of 2255.55, and above the 200-day MA of 2121.43, indicating a bullish trend. The MACD of 28.48 indicates Negative momentum. The RSI at 64.77 is Neutral, neither overbought nor oversold. The STOCH value of 77.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5695.

Powdertech Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4990	68 Neutral	¥5.03B	8.89	―	1.26%	0.80%	63.33%
4624	66 Neutral	¥5.25B	11.57	―	1.39%	2.67%	37.55%
5695	63 Neutral	¥6.53B	21.61	―	6.33%	4.80%	97.52%
4406	62 Neutral	¥8.31B	15.20	―	1.35%	-2.76%	-25.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4119	56 Neutral	¥5.34B	―	―	2.97%	37.67%	-117.29%
4100	46 Neutral	¥7.40B	-2.00	―	―	12.11%	46.97%