Punch Industry Co., Ltd. (6165) AI Stock Analysis

• Market Cap: ¥12.41B
• Dividend Yield: 4.34%
• Average Volume (3M): 65.25K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.75
• Revenue Growth: 7.19%
• EPS Growth: N/A
• Country: JP
• Employees: 3,575
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 5.28
• Shares Outstanding: 27,622,400
• 10 Day Avg. Volume: 83,770
• 30 Day Avg. Volume: 65,246
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥404.00
• Price Target Upside: -10.42% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: ¥404.00 ▼(-10.42% Downside)

Punch Industry Co., Ltd. exhibits a robust financial position with strong cash flow and a healthy balance sheet, positively influencing the overall score. The valuation is attractive due to a low P/E ratio and high dividend yield. However, the technical analysis suggests a neutral outlook with no strong momentum, thus moderating the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for products and effective market positioning, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling strategic investments and debt servicing, which supports long-term growth.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and enhances the company's ability to withstand economic fluctuations.

Negative Factors

Operational Efficiency

Relatively low margins indicate potential inefficiencies, which could limit profitability and competitiveness if not addressed.

Return on Equity

Low ROE suggests the company may not be maximizing shareholder value, which could impact investor confidence and long-term growth potential.

Profit Margin

While improved, the low net profit margin indicates limited profitability, which could affect the company's ability to reinvest in growth opportunities.

Punch Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Punch Industry Co., Ltd. is a Japanese company specializing in the manufacturing and distribution of precision tools and components. The company operates primarily in the metalworking sector, providing high-quality mold and die components that are essential in the production of various industrial products. Their offerings include punches, dies, and other precision tools that cater to a wide range of industries such as automotive, electronics, and consumer goods.

How the Company Makes Money

Punch Industry Co., Ltd. generates revenue through the sale of its precision tools and components. The company serves a diverse client base across multiple industries, which helps to stabilize its income streams. Key revenue streams include the direct sale of standard and custom-made mold and die components. Punch Industry Co., Ltd. also benefits from strategic partnerships and collaborations with other industrial manufacturers, which can enhance its market reach and product distribution. Additionally, the company's focus on high-quality products and customer satisfaction contributes to repeat business and long-term contracts, further driving revenue.

Punch Industry Co., Ltd. Financial Statement Overview

Summary

Punch Industry Co., Ltd. demonstrates strong financial health with consistent revenue growth and improved profitability margins. The balance sheet shows financial stability with low leverage, and cash flow metrics indicate strong liquidity and cash generation capabilities. However, there is room for improving operational efficiency.

Income Statement

Punch Industry Co., Ltd. has demonstrated solid revenue growth with a Revenue Growth Rate of 6.46% from 2024 to 2025. The Gross Profit Margin improved to 26.49%, indicating effective cost management. Furthermore, the Net Profit Margin increased significantly to 2.13% in 2025 from a negative margin in 2024, highlighting a strong turnaround. However, the EBIT Margin of 4.13% and EBITDA Margin of 6.75%, while improved, still suggest room for enhancing operational efficiency.

Balance Sheet

The company maintains a healthy Equity Ratio of 66.77%, indicating a strong capital structure with a high proportion of equity financing. The Debt-to-Equity Ratio stands at 0.14, reflecting low leverage and reduced financial risk. Return on Equity (ROE) improved to 3.94% in 2025, suggesting better utilization of shareholder funds, but still indicates potential for higher returns. The overall balance sheet showcases financial stability with strong equity backing.

Cash Flow

Punch Industry Co., Ltd. reports a robust Free Cash Flow Growth Rate of 244.63%, demonstrating substantial cash flow generation. The Operating Cash Flow to Net Income Ratio is 2.62, indicating strong cash generation relative to profits. Additionally, the Free Cash Flow to Net Income Ratio of 1.44 signifies that the company generates sufficient free cash flow relative to its net income, providing flexibility for investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.82B	40.82B	38.34B	42.80B	39.36B	32.46B
Gross Profit	10.81B	10.81B	10.08B	11.63B	11.44B	9.09B
EBITDA	2.76B	2.76B	1.16B	3.29B	3.87B	2.09B
Net Income	867.00M	868.00M	-577.00M	1.39B	2.04B	477.71M
Balance Sheet
Total Assets	32.97B	32.97B	29.65B	30.46B	28.77B	24.70B
Cash, Cash Equivalents and Short-Term Investments	6.50B	6.50B	6.03B	5.21B	4.82B	4.09B
Total Debt	3.10B	3.10B	3.55B	2.72B	3.39B	4.58B
Total Liabilities	10.93B	10.93B	10.90B	11.40B	12.47B	12.27B
Stockholders Equity	22.01B	22.01B	18.72B	19.03B	16.29B	12.43B
Cash Flow
Free Cash Flow	0.00	1.25B	363.00M	1.27B	1.87B	2.36B
Operating Cash Flow	0.00	2.27B	1.28B	2.56B	2.94B	2.94B
Investing Cash Flow	0.00	-2.42B	-680.00M	-1.55B	-1.10B	-670.20M
Financing Cash Flow	0.00	181.00M	-2.00M	-756.34M	-1.60B	-1.68B

Punch Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 451.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6165, the sentiment is Positive. The current price of 451 is above the 20-day moving average (MA) of 439.15, above the 50-day MA of 410.88, and above the 200-day MA of 392.39, indicating a bullish trend. The MACD of 13.02 indicates Positive momentum. The RSI at 69.64 is Neutral, neither overbought nor oversold. The STOCH value of 65.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6165.

Punch Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5967	70 Outperform	¥13.61B	16.22		1.76%	0.17%	-16.55%
6157	70 Outperform	¥21.04B	15.83		3.56%	3.38%	-2.80%
6165	70 Neutral	¥12.41B	13.67		4.34%	7.19%	―
6380	64 Neutral	¥3.21B	51.33		1.28%	3.83%	-60.31%
Sector *	63 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
6156	57 Neutral	¥7.21B	133.81		5.66%	-0.67%	-283.43%
7726	55 Neutral	¥5.49B	31.09		2.09%	-7.53%	-136.56%

Punch Industry Co., Ltd. Corporate Events

Punch Industry Co., Ltd. Reports Strong Financial Recovery in FY2025

Punch Industry Co., Ltd. reported a significant improvement in its financial performance for the fiscal year ending March 31, 2025, with net sales increasing by 6.5% and operating profit rising by 35.9%. This positive financial outcome indicates a recovery from the previous year’s downturn, suggesting a strengthened market position and potential positive implications for stakeholders.