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

• Market Cap: ¥10.31B
• Dividend Yield: 5.18%
• Average Volume (3M): 35.15K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.75
• Revenue Growth: 6.46%
• EPS Growth: N/A
• Country: JP
• Employees: 3,575
• Sector: Industrials
• Sector Strength: 86
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 8.93
• Shares Outstanding: 27,622,400
• 10 Day Avg. Volume: 38,510
• 30 Day Avg. Volume: 35,153
• PEG Ratio: -0.21
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.07
• 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: 70 Neutral
• Price Target: ¥404.00 ▲(7.16%Upside)

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.

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, primarily for the mold and die industry. The company operates in the industrial sector, providing a wide range of products such as mold and die components, precision machinery parts, and other related products that support various manufacturing processes in industries like automotive, electronics, and consumer goods.

How the Company Makes Money

Punch Industry Co., Ltd. generates revenue through the production and sale of precision tools and components used in mold and die making. The company earns income by supplying these high-precision products to manufacturers in diverse sectors, including automotive and electronics, which require reliable and durable components for their production lines. Key revenue streams include direct sales of mold and die components, as well as custom manufacturing services tailored to specific client requirements. Strategic partnerships and long-term relationships with industrial manufacturers contribute to stable revenue streams, while the company's emphasis on quality and innovation helps maintain its competitive edge in a specialized market.

Punch Industry Co., Ltd. Financial Statement Overview

Summary

Punch Industry Co., Ltd. has exhibited strong financial performance with notable revenue growth and improved profitability margins. The balance sheet reflects financial stability with low leverage, and cash flow metrics indicate strong liquidity and cash generation capabilities. However, there is still room for enhancing 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	39.93B	40.82B	38.34B	42.80B	39.36B	32.46B
Gross Profit	10.52B	10.81B	10.08B	11.63B	11.44B	9.09B
EBITDA	2.66B	2.76B	1.16B	3.29B	3.87B	2.09B
Net Income	839.00M	868.00M	-577.00M	1.39B	2.04B	477.71M
Balance Sheet
Total Assets	31.82B	32.97B	29.65B	30.46B	28.77B	24.70B
Cash, Cash Equivalents and Short-Term Investments	6.09B	6.50B	6.03B	5.21B	4.82B	4.09B
Total Debt	3.52B	3.10B	3.55B	2.72B	3.39B	4.58B
Total Liabilities	11.17B	10.93B	10.90B	11.40B	12.47B	12.27B
Stockholders Equity	20.63B	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: Neutral
• Last Price: 377.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6165, the sentiment is Neutral. The current price of 377 is above the 20-day moving average (MA) of 369.30, above the 50-day MA of 372.78, and below the 200-day MA of 392.36, indicating a neutral trend. The MACD of 1.27 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 87.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	71 Outperform	¥11.25B	10.06		2.13%	10.47%	48.78%
6157	70 Outperform	¥18.84B	14.86		3.97%	3.18%	2.22%
6165	70 Neutral	¥10.31B	11.21		5.18%	6.46%	―
Sector *	65 Neutral	$10.81B	15.65	5.50%	1.89%	3.10%	-27.09%
6380	60 Neutral	¥2.49B	24.83		1.67%	-0.66%	-32.76%
6156	56 Neutral	¥6.98B	132.79		5.87%	-2.14%	-48.88%
7726	56 Neutral	¥5.24B	30.37		2.18%	-6.59%	-65.39%

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.

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 surging by 35.9% compared to the previous year. The company’s comprehensive income saw a remarkable rise of 896.6%, indicating a strong recovery from the previous fiscal year’s downturn. This positive financial outcome reflects the company’s strategic efforts to enhance operational efficiency and market competitiveness, potentially benefiting shareholders and strengthening its industry position.