PIOLAX, Inc. (5988) AI Stock Analysis

• Market Cap: ¥45.25B
• Dividend Yield: 5.08%
• Average Volume (3M): 112.10K
• Price to Earnings (P/E): 50.0
• Beta (1Y): 0.96
• Revenue Growth: -3.80%
• EPS Growth: -66.97%
• Country: JP
• Employees: 2,883
• Sector: Consumer Cyclical
• Sector Strength: 77
• Industry: Auto - Parts
• EPS (TTM): -2.47
• Shares Outstanding: 37,054,100
• 10 Day Avg. Volume: 110,550
• 30 Day Avg. Volume: 112,103
• 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: ¥2,024.00
• Price Target Upside: 10.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥2,024.00 ▲(10.36% Upside)

PIOLAX, Inc. scores well on financial performance due to its strong balance sheet and effective cash flow management, which are the most significant factors. Technical analysis indicates short-term bullish momentum but highlights potential risks due to overbought signals. Valuation is a concern with a high P/E ratio, though the dividend yield offers some compensation. The absence of earnings call and corporate events data limits the analysis to these factors.

PIOLAX, Inc. Business Overview & Revenue Model

Company Description

PIOLAX, Inc. (5988) is a Japanese company primarily engaged in the manufacturing and sale of automotive and industrial components. The company specializes in producing plastic fasteners, precision springs, and other components used in various automotive applications. PIOLAX serves a broad range of industries, with a focus on providing innovative solutions that enhance the performance and efficiency of automotive systems.

How the Company Makes Money

PIOLAX, Inc. generates revenue through the design, manufacture, and sale of its core products, which include plastic fasteners, precision springs, and other automotive components. The company supplies these components to major automotive manufacturers and suppliers, forming long-term partnerships within the automotive industry. PIOLAX benefits from the ongoing demand for high-quality, durable components that are essential in the assembly and maintenance of vehicles. The company's revenue streams are primarily driven by sales contracts with automotive OEMs (Original Equipment Manufacturers) and tier-one suppliers, who rely on PIOLAX's products to ensure the safety, functionality, and efficiency of their vehicles.

PIOLAX, Inc. Financial Statement Overview

Summary

PIOLAX, Inc. demonstrates financial stability with strong equity positions and effective cash flow management. Despite recent revenue challenges, the company maintains solid margins and a robust balance sheet, positioning it well for future growth opportunities.

Income Statement

PIOLAX, Inc. has experienced fluctuating revenue trends with a noticeable decline in the most recent year. The company reported a gross profit margin of 21.4% and a net profit margin of 2.8% for the latest period, which indicates moderate profitability but reduced performance when compared to the previous year. Nonetheless, the EBIT and EBITDA margins stood at 3.8% and 12.3% respectively, showcasing decent operational efficiency.

Balance Sheet

The balance sheet of PIOLAX, Inc. is robust with a strong equity base, as evidenced by a high equity ratio of 85.8%. The debt-to-equity ratio is low at 0.68, indicating low leverage and financial stability. The return on equity (ROE) for the latest period is 2.0%, which suggests room for improvement in generating returns for shareholders.

Cash Flow

The company's cash flow statement reveals a positive trend in free cash flow generation, with a free cash flow growth rate of 329.2% in the latest year. The operating cash flow to net income ratio is 4.5, indicating strong cash generation relative to net earnings. Additionally, the free cash flow to net income ratio is 2.0, reflecting effective cash conversion.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	63.35B	64.55B	58.42B	55.14B	50.15B
Gross Profit	13.53B	15.51B	14.69B	15.08B	12.84B
EBITDA	7.77B	8.63B	7.54B	8.51B	7.58B
Net Income	1.79B	4.01B	3.38B	4.22B	3.96B
Balance Sheet
Total Assets	105.46B	121.42B	115.46B	109.67B	106.05B
Cash, Cash Equivalents and Short-Term Investments	35.68B	37.27B	38.84B	38.04B	38.56B
Total Debt	614.00M	291.00M	277.00M	404.00M	1.67B
Total Liabilities	13.68B	13.47B	11.21B	11.34B	12.31B
Stockholders Equity	90.45B	106.30B	102.67B	96.89B	92.41B
Cash Flow
Free Cash Flow	3.57B	832.00M	1.71B	3.75B	4.75B
Operating Cash Flow	8.12B	8.37B	6.07B	6.44B	7.34B
Investing Cash Flow	3.34B	-8.57B	-5.00B	-3.86B	-2.58B
Financing Cash Flow	-6.47B	-4.70B	-2.44B	-4.69B	300.00M

PIOLAX, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1834.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5988, the sentiment is Positive. The current price of 1834 is above the 20-day moving average (MA) of 1792.45, above the 50-day MA of 1783.44, and below the 200-day MA of 2156.13, indicating a neutral trend. The MACD of 11.38 indicates Negative momentum. The RSI at 59.14 is Neutral, neither overbought nor oversold. The STOCH value of 56.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5988.

PIOLAX, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7250	81 Outperform	¥131.58B	10.03		2.41%	-1.29%	-26.66%
5970	79 Outperform	¥82.89B	7.36		4.48%	-6.49%	-16.68%
7292	77 Outperform	¥77.33B	12.28		3.08%	4.49%	5.84%
5988	71 Outperform	¥45.25B	49.97		5.08%	-3.80%	-66.97%
7241	70 Outperform	¥80.69B	12.50		3.75%	-11.96%	-46.82%
7287	66 Neutral	¥93.78B	14.12		3.00%	0.60%	172.55%
Sector *	63 Neutral	£1.73B	9.28	4.55%	3.48%	0.65%	-43.22%

PIOLAX, Inc. Corporate Events

PIOLAX, Inc. Announces Strategic Reorganization to Boost Competitiveness

PIOLAX, Inc. announced a strategic reorganization involving the absorption of its subsidiary, PIOLAX BUSINESS SERVICE CO., LTD., and the transfer of its insurance agency business to another subsidiary, KHK SALES CO., LTD. This move aims to enhance competitiveness and operational efficiency in response to significant changes in the automotive industry. The reorganization is structured as a simplified merger and split, allowing for streamlined decision-making and resource allocation without the need for shareholder meetings.

PIOLAX, Inc. Reports Decline in Q1 2025 Financial Results

PIOLAX, Inc. reported a decline in its financial performance for the three months ending June 30, 2025, with net sales decreasing by 4.1% and significant drops in operating and ordinary profits. The company also experienced a substantial decrease in profit attributable to owners of the parent, reflecting challenges in maintaining profitability. Despite these setbacks, the company has maintained its dividend forecast for the fiscal year ending March 31, 2026, indicating a commitment to shareholder returns.

PIOLAX, Inc. Advances Share Repurchase Strategy

PIOLAX, Inc. has announced the acquisition of its own shares, repurchasing 143,200 common shares at a total cost of JPY 251,172,800 during July 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 1,200,000 shares by March 2026, aiming to enhance shareholder value and optimize capital structure.

PIOLAX, Inc. Reports Progress in Share Repurchase Program

PIOLAX, Inc. announced the acquisition of 310,200 of its own shares, amounting to JPY 572,074,800, during June 2025, as part of a broader plan approved by its Board of Directors to repurchase up to 1,200,000 shares. This move is part of a strategic initiative to manage its capital structure and potentially enhance shareholder value.

PIOLAX, Inc. Announces Share Repurchase Program

PIOLAX, Inc. has announced the acquisition of its own shares, purchasing 99,400 common shares at a total cost of JPY 202,859,600 through market acquisition on the Tokyo Stock Exchange. This move is part of a broader resolution by the Board of Directors to acquire up to 1,200,000 shares, reflecting a strategic initiative to enhance shareholder value and optimize capital structure.

PIOLAX, Inc. Announces Strategic Organizational and Personnel Changes

PIOLAX, Inc. announced organizational and personnel changes effective July 1, 2025, to enhance its responsiveness to the evolving automobile industry. The company will establish a new Sales Strategy Office and consolidate its Fuji Branch into the Yokohama Branch to strengthen its sales efforts and resource utilization. These changes are expected to have minimal impact on the current fiscal year’s financial results.