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PIOLAX, Inc. (JP:5988)
:5988
Japanese Market
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PIOLAX, Inc. (5988) AI Stock Analysis

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JP:5988

PIOLAX, Inc.

(5988)

Rating:63Neutral
Price Target:
¥1,900.00
▲(8.45%Upside)
The overall score reflects strong financial stability and effective cash flow management, which are the most significant factors. However, bearish technical indicators and a high P/E ratio suggest caution, balancing the positive financial performance.

PIOLAX, Inc. (5988) vs. iShares MSCI Japan ETF (EWJ)

PIOLAX, Inc. Business Overview & Revenue Model

Company DescriptionPIOLAX, 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 MoneyPIOLAX, 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
75
Positive
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
85
Very Positive
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
80
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue63.35B64.55B58.42B55.14B50.15B
Gross Profit13.53B15.51B14.69B15.08B12.84B
EBITDA7.77B8.63B7.54B8.51B7.58B
Net Income1.79B4.01B3.38B4.22B3.96B
Balance Sheet
Total Assets105.46B121.42B115.46B109.67B106.05B
Cash, Cash Equivalents and Short-Term Investments35.68B37.27B38.84B38.04B38.56B
Total Debt614.00M291.00M277.00M404.00M1.67B
Total Liabilities13.68B13.47B11.21B11.34B12.31B
Stockholders Equity90.45B106.30B102.67B96.89B92.41B
Cash Flow
Free Cash Flow3.57B832.00M1.71B3.75B4.75B
Operating Cash Flow8.12B8.37B6.07B6.44B7.34B
Investing Cash Flow3.34B-8.57B-5.00B-3.86B-2.58B
Financing Cash Flow-6.47B-4.70B-2.44B-4.69B300.00M

PIOLAX, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1752.00
Price Trends
50DMA
1827.64
Negative
100DMA
2021.43
Negative
200DMA
2196.39
Negative
Market Momentum
MACD
-18.07
Negative
RSI
44.07
Neutral
STOCH
63.70
Neutral
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 1752 is below the 20-day moving average (MA) of 1752.05, below the 50-day MA of 1827.64, and below the 200-day MA of 2196.39, indicating a bearish trend. The MACD of -18.07 indicates Negative momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 63.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5988.

PIOLAX, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥79.63B6.40
4.59%-1.56%-5.87%
81
Outperform
¥129.34B9.86
2.44%-1.29%-26.66%
77
Outperform
¥72.89B12.46
3.28%4.40%3.95%
70
Outperform
¥74.16B11.93
2.42%-11.15%-51.63%
66
Neutral
¥89.72B14.78
3.26%1.29%20.18%
63
Neutral
¥58.30B33.84
5.16%-1.86%-55.23%
62
Neutral
$17.27B9.93-8.46%3.20%1.63%-26.06%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5988
PIOLAX, Inc.
1,752.00
-636.66
-26.65%
JP:5970
G-Tekt Corporation
1,855.00
111.08
6.37%
JP:7241
Futaba Industrial Co., Ltd.
835.00
97.98
13.29%
JP:7250
Pacific Industrial Co., Ltd.
2,100.00
581.94
38.33%
JP:7287
Nippon Seiki Co., Ltd.
1,536.00
209.31
15.78%
JP:7292
Murakami Corporation
6,640.00
2,025.70
43.90%

PIOLAX, Inc. Corporate Events

PIOLAX, Inc. Reports Progress in Share Repurchase Program
Jul 3, 2025

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
Jun 4, 2025

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
May 30, 2025

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
May 12, 2025

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
May 12, 2025

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
May 12, 2025

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
May 12, 2025

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
May 12, 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.

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.Date of analysis: Jun 18, 2025