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

• Market Cap: ¥7.47B
• Dividend Yield: 6.58%
• Average Volume (3M): 760.00
• Price to Earnings (P/E): 38.3
• Beta (1Y): 0.35
• 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: 1.46
• 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: ¥2,746.00 ▲(18.21% 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

Balance Sheet Strength

An equity ratio of ~80.8% and minimal leverage give Powdertech durable financial resilience. Low debt reduces financial risk, preserves borrowing capacity for capex or strategic moves, and supports consistent capital return policies and flexibility through economic cycles.

Improving Cash Generation

A large jump to positive free cash flow and a strong operating cash flow to net income ratio (2.69x) indicate improving cash conversion from core operations. This strengthens capacity to fund reinvestment, maintain dividends, and reduce leverage without relying on external financing.

Stable Revenue and Gross Margin

Mid-single-digit revenue growth with a healthy gross margin suggests sustained product demand and some pricing power in specialty chemicals. A stable top-line and solid gross margin form a base for margin recovery if operational efficiency and cost control improve.

Negative Factors

Low and Falling ROE

ROE at ~2.5% signals the company is generating minimal returns on shareholders' capital despite a strong equity base. Persistently low ROE reflects weak capital efficiency or low profit generation and limits retained-earnings growth for financing expansion.

Shrinking Operating Margins

A decline in EBIT margin points to rising operating costs or margin pressure that erodes the company's ability to convert sales into operating profit. Sustained margin compression makes long-term earnings and cashflow improvement harder without structural cost fixes.

Modest Cash Conversion Efficiency

A FCF-to-net-income ratio near 1.1 means accounting profits only modestly translate into free cash. Ongoing working capital or capex inefficiencies could constrain dividend sustainability and reinvestment capacity if not improved over the medium term.

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

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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	2.21B	2.11B	2.39B	2.75B	1.86B
EBITDA	1.07B	1.07B	1.08B	1.54B	1.86B	1.08B
Net Income	302.82M	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	2.72B	3.15B	3.99B	3.26B
Total Debt	706.58M	714.70M	15.15M	14.91M	11.79M	6.85M
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	-177.53M	-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: Neutral
• Last Price: 2323.00
• 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:5695, the sentiment is Neutral. The current price of 2323 is below the 20-day moving average (MA) of 2632.70, below the 50-day MA of 2514.92, and above the 200-day MA of 2275.98, indicating a neutral trend. The MACD of 17.26 indicates Positive momentum. The RSI at 49.81 is Neutral, neither overbought nor oversold. The STOCH value of 64.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥6.59B	7.93	―	3.50%	-8.27%	-3.23%
4629	70 Outperform	¥7.76B	8.04	―	2.51%	2.26%	51.04%
4624	66 Neutral	¥5.75B	6.39	―	1.39%	2.67%	37.55%
4119	66 Neutral	¥8.27B	2.66	―	2.84%	37.67%	-117.29%
5695	63 Neutral	¥7.47B	38.30	―	6.58%	4.80%	97.52%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.25B	-15.17	―	―	8.66%	-239.07%