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

• Market Cap: ¥7.84B
• Dividend Yield: 6.58%
• Average Volume (3M): 760.00
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.30
• Revenue Growth: 4.80%
• EPS Growth: 97.52%
• Country: JP
• Employees: 263
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 15.16
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ¥2,883.00 ▲(24.11% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

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 very high equity ratio and minimal leverage provide durable financial resilience, lowering bankruptcy and refinancing risk. This capital structure supports longer-term investment, buffer against downturns, and flexibility to fund capex or strategic initiatives without heavy debt costs.

Improved free cash flow generation

A large improvement in free cash flow and strong operating cash flow relative to net income indicate higher earnings quality and internal funding capacity. Persistent positive FCF enhances ability to fund dividends, reduce leverage, or invest in growth without relying on external capital.

Healthy gross margin

A gross margin above 20% implies product-level pricing power or manufacturing efficiency in specialty chemicals. This margin base gives the company structural capacity to absorb SG&A and raw material volatility, supporting medium-term profitability if cost discipline continues.

Negative Factors

Low return on equity

ROE near 2.5% signals weak conversion of shareholder capital into profit, especially given the high equity base. Persistently low ROE can indicate poor capital allocation or low operating leverage, limiting long-term shareholder returns and reducing attractiveness for reinvestment.

Thin and falling margins

Low net margin and a declining EBIT margin point to structural cost pressures or pricing erosion. If operating margin compression persists, it will constrain cash generation and the ability to fund growth or dividends, making profitability sensitive to input cost or demand shifts.

Reported revenue trend weakness

Negative reported revenue growth suggests shrinking top-line scale or weakening demand. Over a multi-month horizon, declining revenues reduce economies of scale, strain fixed-cost coverage and make margin recovery harder, increasing the need for strategic action to restore growth.

Powdertech Co., Ltd. Business Overview & Revenue Model

Company Description

Powdertech Co., Ltd. manufactures and sells carriers for electrophotography in Japan and internationally. The company offers ferrite carrier materials for electrophotographic applications, such as copiers, printers, and multi-function printers; and iron powders for disposable pocket warmer and oxygen absorber. Powdertech Co., Ltd. was founded in 1952 and is based in Kashiwa, Japan.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 2323.00
• 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 2323 is below the 20-day moving average (MA) of 2566.60, below the 50-day MA of 2444.06, and above the 200-day MA of 2238.53, indicating a bullish trend. The MACD of 93.97 indicates Negative momentum. The RSI at 63.90 is Neutral, neither overbought nor oversold. The STOCH value of 71.90 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
4623	72 Outperform	¥6.67B	10.85	―	3.50%	-8.27%	-3.23%
4629	70 Outperform	¥8.05B	9.17	―	2.51%	2.26%	51.04%
4624	66 Neutral	¥6.22B	12.02	―	1.39%	2.67%	37.55%
4119	66 Neutral	¥7.49B	-8.05	―	2.84%	37.67%	-117.29%
5695	63 Neutral	¥7.84B	26.87	―	6.58%	4.80%	97.52%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.32B	-10.61	―	―	8.66%	-239.07%