PIOLAX, Inc. (5988) AI Stock Analysis

• Market Cap: ¥59.97B
• Dividend Yield: 5.79%
• Average Volume (3M): 81.15K
• Price to Earnings (P/E): 34.8
• Beta (1Y): 0.99
• Revenue Growth: -1.86%
• EPS Growth: -55.33%
• Country: JP
• Employees: 2,883
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Parts
• EPS (TTM): -2.47
• Shares Outstanding: 37,054,100
• 10 Day Avg. Volume: 120,600
• 30 Day Avg. Volume: 81,153
• PEG Ratio: -0.95
• Price to Book (P/B): 0.71
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ¥2,112.00 ▲(15.35%Upside)

PIOLAX, Inc. demonstrates strong financial stability with effective cash flow management, which supports its overall score. However, technical analysis reveals weak stock momentum, and a high P/E ratio suggests potential overvaluation. A strong dividend yield provides some offset, offering investors income potential.

PIOLAX, Inc. Business Overview & Revenue Model

Company Description

PIOLAX, Inc. (5988) is a Japanese corporation engaged in the manufacturing and distribution of automotive and industrial components. The company specializes in the production of fasteners, springs, and interior components primarily for the automotive industry. PIOLAX is known for its innovative solutions and high-quality products that cater to major automobile manufacturers globally.

How the Company Makes Money

PIOLAX, Inc. generates revenue primarily through the sale of its automotive and industrial components. The company's key revenue streams include the manufacturing and distribution of fasteners, springs, and interior components used by major automobile manufacturers. PIOLAX partners with various automotive companies, which significantly contributes to its earnings. By leveraging its expertise in component design and manufacturing, PIOLAX maintains strong relationships with its clients, ensuring consistent demand for its products. Additionally, the company's focus on innovation and quality helps it to secure long-term contracts and partnerships, further enhancing its revenue potential.

PIOLAX, Inc. Financial Statement Overview

Summary

PIOLAX, Inc. demonstrates a sound financial position with strong equity and low debt, supporting its stability. The income statement reflects effective cost management, but there is a need to address recent declines in revenue and cash flow generation. Overall, the financial health is positive, but attention to cash flow management is crucial for future growth.

Income Statement

PIOLAX, Inc. shows a strong gross profit margin of 22.5% TTM, indicating effective cost management. The net profit margin is healthy at 3.1% TTM, although it has decreased from the previous year. Revenue growth has been modest, with a slight decline over the most recent period. EBIT and EBITDA margins suggest stable operational efficiency, though there is room for improvement.

Balance Sheet

The company exhibits financial stability with a robust equity ratio of 87.8% TTM, reflecting strong shareholder backing and low leverage, as evidenced by a debt-to-equity ratio of 0.0. Return on equity is solid at 1.9% TTM, though it has room to grow. The balance sheet indicates a secure financial position with ample liquidity.

Cash Flow

Cash flow analysis shows a decrease in free cash flow over time, with a notable lack of operating cash flow in the TTM period. The company previously had strong free cash flow to net income ratios, but recent results suggest potential cash flow management challenges. Historical data indicates capacity for improvement in generating cash flow.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
64.33B	64.55B	58.42B	55.14B	50.15B	62.48B
	Gross Profit
14.48B	15.51B	14.69B	15.08B	12.84B	16.99B
	EBIT
2.52B	4.76B	3.95B	5.22B	4.02B	6.75B
	EBITDA
7.03B	9.47B	7.54B	8.51B	7.58B	10.67B
	Net Income Common Stockholders
1.98B	4.01B	3.38B	4.22B	3.96B	5.23B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
34.33B	37.27B	38.84B	38.04B	38.56B	33.58B
	Total Assets
118.91B	121.42B	115.46B	109.67B	106.05B	101.75B
	Total Debt
0.00	291.00M	277.00M	404.00M	1.67B	200.00M
	Net Debt
-33.52B	-35.36B	-36.70B	-35.10B	-31.29B	-31.22B
	Total Liabilities
13.13B	13.47B	11.21B	11.34B	12.31B	10.30B
	Stockholders Equity
104.39B	106.30B	102.67B	96.89B	92.41B	90.11B
Cash Flow		Free Cash Flow
0.00	832.00M	1.71B	3.75B	4.75B	4.50B
	Operating Cash Flow
0.00	8.37B	6.07B	6.44B	7.34B	8.58B
	Investing Cash Flow
0.00	-8.57B	-5.00B	-3.86B	-2.58B	-6.19B
	Financing Cash Flow
0.00	-4.70B	-2.44B	-4.69B	300.00M	-3.67B

PIOLAX, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1831.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5988, the sentiment is Negative. The current price of 1831 is below the 20-day moving average (MA) of 1946.25, below the 50-day MA of 2047.60, and below the 200-day MA of 2276.06, indicating a bearish trend. The MACD of -75.40 indicates Positive momentum. The RSI at 24.20 is Positive, neither overbought nor oversold. The STOCH value of 5.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5988.

PIOLAX, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5970	82 Outperform	¥73.61B	5.92		5.84%	-1.56%	-5.89%
7287	80 Outperform	¥80.29B	13.23		3.60%	1.29%	19.15%
7292	79 Outperform	¥68.79B	11.76		3.97%	4.40%	3.95%
7250	72 Outperform	¥79.24B	5.70		3.98%	-0.59%	-20.67%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
5988	61 Neutral	¥59.97B	34.81		5.79%	-1.86%	-55.33%
7241	61 Neutral	¥64.48B	10.38		0.83%	-11.15%	-51.63%

PIOLAX, Inc. Corporate Events

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.

PIOLAX, Inc. Announces Leadership Changes to Enhance Corporate Value

PIOLAX, Inc. announced a change in its leadership structure, with Yukihiko Shimazu stepping down as Representative Director and Chairman to become Director and Chairman without representative authority. This shift reflects a strategic review of responsibilities aimed at enhancing corporate value. Additionally, Shigeru Masuda has been promoted to Managing Director, and there are changes in the roles of substitute directors, indicating a broader restructuring of the company’s management team.

PIOLAX, Inc. Proposes Amendment for Flexible Dividend Policy

PIOLAX, Inc. has announced a proposal to amend its Articles of Incorporation to allow for a more flexible capital and dividend policy. This change, which will be decided at the upcoming shareholders’ meeting, aims to enable the Board of Directors to make decisions on dividends of surplus, enhancing the company’s ability to manage its financial strategies effectively.

PIOLAX, Inc. Announces Strategic Reversal of General Reserve

PIOLAX, Inc. announced a strategic financial move to reverse a portion of its general reserve, reallocating ¥20 billion to retained earnings. This decision aims to enhance financial flexibility and ensure stable profit returns amid changing management environments, without affecting the company’s net assets or profitability.

PIOLAX, Inc. Announces Strategic Share Buyback Plan

PIOLAX, Inc. has announced a strategic decision to acquire up to 1,200,000 of its own shares, representing 4.6% of its total issued shares, as part of a capital policy aimed at enhancing corporate value. This move, which involves an investment of up to ¥2 billion, is expected to strengthen the company’s financial position and provide value to shareholders, reflecting its commitment to growth and stability in the market.

PIOLAX, Inc. Reports Decline in Financial Performance for FY 2025

PIOLAX, Inc. reported a decrease in its financial performance for the fiscal year ended March 31, 2025, with net sales declining by 1.9% and significant drops in operating and ordinary profits. The company also announced a reduction in dividends per share, reflecting a challenging economic environment and impacting its financial outlook for the coming year.