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PIOLAX, Inc.
(5988)
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Rating:48Neutral
Price Target:
¥1,530.00
▼(-11.66% Downside)
Action:Reiterated
Date:05/14/26
The score is held back primarily by deteriorating financial performance—especially the FY2026 swing to a net loss and sharply negative free cash flow—alongside a bearish technical trend (price below key moving averages and negative MACD). A high dividend yield provides some support, but the negative P/E reflects loss-making conditions and adds valuation risk.
Positive Factors
Solid balance sheet
A meaningful equity cushion and moderate debt-to-equity (~0.38) provide financial flexibility over the medium term, enabling the company to absorb cyclical downturns in auto production, fund necessary capex or working capital, and support program continuity without immediate refinancing pressure.
Negative Factors
Net loss in FY2026
Transitioning to a net loss and compressed operating margins signals structural pressure on profitability. Over the medium term this undermines internal funding for reinvestment, raises strain on dividend sustainability, and diminishes the buffer to absorb prolonged weak auto production or price competition.
Read all positive and negative factors
Positive Factors
Negative Factors
Solid balance sheet
A meaningful equity cushion and moderate debt-to-equity (~0.38) provide financial flexibility over the medium term, enabling the company to absorb cyclical downturns in auto production, fund necessary capex or working capital, and support program continuity without immediate refinancing pressure.
Read all positive factors
PIOLAX, Inc. (5988) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥41.65B
Dividend Yield5.52%
Average Volume (3M)108.00K
Price to Earnings (P/E)―
Beta (1Y)0.87
Revenue Growth-2.06%
EPS Growth-103.40%
CountryJP
Employees2,784
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.26
Shares Outstanding37,054,100
10 Day Avg. Volume157,980
30 Day Avg. Volume107,999
Financial Highlights & Ratios
PEG Ratio18.98
Price to Book (P/B)0.62
Price to Sales (P/S)0.65
P/FCF Ratio-6.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)54.8
Revenue Forecast (FY)¥62.00B
PIOLAX, Inc. Business Overview & Revenue Model
Company Description
PIOLAX, Inc. is a manufacturing enterprise dedicated to the engineering, production, and sale of a wide array of specialized parts and products for key sectors including automotive, medical, consumer goods, and security. Within the automotive doma...
How the Company Makes Money
PIOLAX makes money mainly by manufacturing and selling automotive components to vehicle OEMs and automotive parts suppliers. Its revenue is primarily generated from: (1) Springs business: sales of various precision springs and spring-related parts...
PIOLAX, Inc. Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 62.05B | 63.35B | 64.55B | 58.42B | 55.14B |
| Gross Profit | 13.73B | 13.53B | 15.51B | 14.12B | 14.63B |
| EBITDA | 5.91B | 6.74B | 8.63B | 7.54B | 8.51B |
| Net Income | -20.00M | 1.79B | 4.01B | 3.38B | 4.22B |
Balance Sheet | |||||
| Total Assets | 101.42B | 105.83B | 121.99B | 116.02B | 109.67B |
| Cash, Cash Equivalents and Short-Term Investments | 26.34B | 35.68B | 37.27B | 38.84B | 38.04B |
| Total Debt | 24.57B | 614.00M | 291.00M | 277.00M | 404.00M |
| Total Liabilities | 35.27B | 14.04B | 14.04B | 11.77B | 11.34B |
| Stockholders Equity | 64.86B | 90.45B | 106.30B | 102.67B | 96.89B |
Cash Flow | |||||
| Free Cash Flow | -6.56B | 3.57B | 1.02B | 1.82B | 3.89B |
| Operating Cash Flow | 3.00B | 8.12B | 8.37B | 6.07B | 6.44B |
| Investing Cash Flow | -7.56B | 3.34B | -8.57B | -5.00B | -3.86B |
| Financing Cash Flow | -3.14B | -6.47B | -4.70B | -2.44B | -4.69B |
PIOLAX, Inc. Technical Analysis
Positive
1732.00
Price Trends
1580.10
Positive
1604.52
Positive
1645.28
Positive
Market Momentum
24.54
Negative
67.98
Neutral
81.58
Negative
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 1732 is above the 20-day moving average (MA) of 1609.10, above the 50-day MA of 1580.10, and above the 200-day MA of 1645.28, indicating a bullish trend. The MACD of 24.54 indicates Negative momentum. The RSI at 67.98 is Neutral, neither overbought nor oversold. The STOCH value of 81.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5988.
PIOLAX, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | ¥123.59B | 12.13 | ― | 3.01% | 12.36% | 11.04% | |
74 Outperform | ¥575.79B | 9.96 | 8.58% | 2.62% | 8.21% | 72.79% | |
70 Outperform | ¥471.30B | 13.87 | ― | 1.60% | -0.11% | -21.95% | |
69 Neutral | ¥112.91B | 10.51 | ― | 5.78% | 1.24% | 188.67% | |
65 Neutral | ¥142.54B | 9.86 | ― | 3.30% | -1.91% | 7.52% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
48 Neutral | ¥41.65B | -6,411.54 | ― | 5.35% | -2.06% | -103.40% |
* Consumer Cyclical Sector Average
JP:5988
PIOLAX, Inc.
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PIOLAX, Inc. Corporate Events
PIOLAX Revises Medium-Term Plan to Reflect Shifting Business Environment
May 12, 2026
PIOLAX, Inc. has revised its Medium-Term Management Plan for fiscal years 2025 to 2027 after a Board decision, reflecting changes in the recent business environment and the operating performance of its group companies. The updated plan signals tha...
Piolax Misses Profit Target Despite Meeting Revenue and Operating Forecasts
May 12, 2026
Piolax reported that its full-year FY2026 consolidated results slightly exceeded earlier forecasts for net sales and operating and ordinary profits, but net profit attributable to owners of the parent turned negative. Revenue and profit metrics we...
PIOLAX Swings to Small Loss but Keeps Dividend and Targets Modest Recovery
May 12, 2026
PIOLAX reported a 2.1% decline in net sales to ¥62.0 billion for the fiscal year ended March 31, 2026, with operating profit down 38.3% and ordinary profit down 57.3%, resulting in a slight net loss attributable to owners of the parent. Profi...
PIOLAX Delays FY2026 Earnings Release by One Day Amid Audit Review
May 11, 2026
PIOLAX, Inc. has postponed the announcement of its financial results for the fiscal year ending March 31, 2026, which had been scheduled for May 11. The delay stems from its auditor determining that certain accounting treatments require further co...
PIOLAX Reports Progress on Ongoing Share Buyback Program
May 8, 2026
PIOLAX, Inc. reported the latest progress of its share buyback program authorized by its board in February 2026, conducted under provisions of the Companies Act. Between April 1 and April 30, 2026, the company repurchased 73,600 common shares on t...
PIOLAX cuts profit forecast on overseas impairment but keeps dividend plan
Apr 27, 2026
PIOLAX, Inc. plans to book about ¥400 million in impairment losses on fixed assets at certain overseas subsidiaries for the fiscal year ending March 31, 2026, after determining that changes in the business environment and production realignme...
PIOLAX Reports Progress on Share Buyback Program
Apr 3, 2026
PIOLAX, Inc. has disclosed the status of its ongoing share buyback program, reporting the repurchase of 129,400 common shares on the Tokyo Stock Exchange between March 1 and March 31, 2026, at a total cost of about JPY 216.8 million. This activity...
PIOLAX Reshapes Board With New Director and Chairman’s Retirement
Mar 24, 2026
PIOLAX, Inc. has announced changes to its board of directors following a March 24, 2026 board meeting, with the new structure to be finalized at the June 25, 2026 shareholders meeting. Executive Officer Yuri Yamamoto will be promoted to director, ...
Piolax to Book ¥2.956 Billion in Subsidiary Dividends With No Impact on Consolidated Results
Mar 24, 2026
PIOLAX, Inc. announced it will receive a total of ¥2.956 billion in dividends from five consolidated subsidiaries between April and June 2026, a move aimed at improving capital efficiency within the group and enhancing overall financial manag...
PIOLAX Begins Execution of Share Buyback Program on TSE
Mar 4, 2026
PIOLAX, Inc. has disclosed the progress of its share buyback program authorized by its board on February 12, 2026, under provisions of the Companies Act. Between February 13 and February 28, 2026, the company repurchased 39,000 of its common share...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.