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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)

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Neutral 48 (OpenAI - 5.2)
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)

PIOLAX, Inc. Business Overview & Revenue Model

Company Description
PIOLAX, Inc. designs, develops, produces, and sells various parts and products for automotive, medical, and consumer and security industries. It offers valves and fuel parts for filling, storing, and providing petrol; connectors for piping used ar...
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
Overall fundamentals weakened: profitability deteriorated into a small net loss in FY2026 with operating margin compression, and cash flow quality is a key concern as free cash flow turned sharply negative. The balance sheet remains reasonably solid with moderate leverage, but debt increased materially versus prior years, reducing flexibility amid weaker earnings.
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
38
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue62.71B62.05B63.35B64.55B58.42B55.14B
Gross Profit13.81B13.73B13.53B15.51B14.12B14.63B
EBITDA6.46B5.91B6.74B8.63B7.54B8.51B
Net Income1.20B-20.00M1.79B4.01B3.38B4.22B
Balance Sheet
Total Assets94.62B101.42B105.83B121.99B116.02B109.67B
Cash, Cash Equivalents and Short-Term Investments25.22B26.34B35.68B37.27B38.84B38.04B
Total Debt18.85B24.57B614.00M291.00M277.00M404.00M
Total Liabilities29.14B35.27B14.04B14.04B11.77B11.34B
Stockholders Equity64.22B64.86B90.45B106.30B102.67B96.89B
Cash Flow
Free Cash Flow0.00-6.56B3.57B1.02B1.82B3.89B
Operating Cash Flow0.003.00B8.12B8.37B6.07B6.44B
Investing Cash Flow0.00-7.56B3.34B-8.57B-5.00B-3.86B
Financing Cash Flow0.00-3.14B-6.47B-4.70B-2.44B-4.69B

PIOLAX, Inc. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1732.00
Price Trends
50DMA
1606.11
Negative
100DMA
1654.53
Negative
200DMA
1675.43
Negative
Market Momentum
MACD
-19.52
Positive
RSI
41.54
Neutral
STOCH
36.78
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 1732 is above the 20-day moving average (MA) of 1582.30, above the 50-day MA of 1606.11, and above the 200-day MA of 1675.43, indicating a bearish trend. The MACD of -19.52 indicates Positive momentum. The RSI at 41.54 is Neutral, neither overbought nor oversold. The STOCH value of 36.78 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
85
Outperform
¥113.31B10.813.01%12.35%11.03%
74
Outperform
¥526.52B8.118.58%2.62%8.21%72.79%
70
Outperform
¥379.89B12.151.60%-0.11%-21.86%
69
Neutral
¥111.82B12.015.78%1.24%186.45%
62
Neutral
¥107.87B23.213.30%-1.91%7.67%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
48
Neutral
¥38.80B-2,015.545.35%-2.06%-100.49%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5988
PIOLAX, Inc.
1,575.00
-326.35
-17.16%
JP:7282
Toyoda Gosei Co
4,634.00
1,991.80
75.38%
JP:5161
Nishikawa Rubber Co., Ltd.
3,105.00
910.19
41.47%
JP:7283
Aisan Industry Co., Ltd.
1,738.00
-7.61
-0.44%
JP:7988
Nifco Inc.
4,118.00
776.64
23.24%
JP:8117
Central Automotive Products Ltd.
1,963.00
196.95
11.15%

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.Date of analysis: May 14, 2026