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

• Market Cap: ¥13.51B
• Dividend Yield: 3.88%
• Average Volume (3M): 38.78K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.81
• Revenue Growth: 5.57%
• EPS Growth: 89.21%
• Country: JP
• Employees: 3,575
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 15.05
• Shares Outstanding: 27,622,400
• 10 Day Avg. Volume: 54,280
• 30 Day Avg. Volume: 38,783
• PEG Ratio: -0.05
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 8.37
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥545.00 ▲(10.32% Upside)

Punch Industry Co., Ltd. demonstrates strong financial performance with robust cash flow and low leverage, contributing significantly to its overall score. The technical analysis indicates bullish momentum, although the high RSI suggests caution due to potential overbought conditions. The valuation is attractive with a low P/E ratio and a solid dividend yield, enhancing the stock's appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Strong cash flow generation enhances financial flexibility, allowing for strategic investments and debt reduction, bolstering long-term stability.

Balance Sheet Health

A strong equity ratio reduces financial risk and enhances the company's ability to withstand economic downturns, supporting sustainable growth.

Negative Factors

Operational Efficiency

Suboptimal operational efficiency can limit profitability and competitiveness, necessitating improvements to sustain long-term growth.

Return on Equity

Low ROE may signal inefficient use of equity capital, potentially impacting investor confidence and long-term value creation.

Profit Margin

While improved, the relatively low net profit margin suggests further cost management is needed to enhance profitability and sustain growth.

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

Company Description

Punch Industry Co., Ltd. (6165) is a leading manufacturer specializing in precision metal components and parts. The company operates primarily in the automotive and electronics sectors, delivering high-quality products that include stamped and machined components, as well as assembly services. With a focus on innovation and technological advancement, Punch Industry aims to meet the diverse needs of its customers by providing customized solutions and maintaining strict quality control standards.

How the Company Makes Money

Punch Industry Co., Ltd. generates revenue through the sale of its precision metal components to various industries, primarily the automotive and electronics sectors. The company operates on a business-to-business (B2B) model, securing contracts with manufacturers who require high-quality, reliable components for their products. Key revenue streams include direct sales of stamped and machined parts, as well as assembly services which add value by providing complete solutions to clients. Additionally, Punch Industry may engage in long-term partnerships with automotive and electronics manufacturers, allowing for steady demand and recurring revenue. The company's emphasis on research and development helps in maintaining its competitive edge, attracting more clients and expanding its market presence.

Punch Industry Co., Ltd. Financial Statement Overview

Summary

Punch Industry Co., Ltd. showcases a strong financial position with consistent revenue growth and improved profitability margins. The balance sheet reflects financial stability with low leverage, while cash flow metrics indicate strong liquidity and cash generation capabilities. Despite some areas for operational efficiency improvement, the company's financial health is robust and supports future growth prospects.

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	41.33B	40.82B	38.34B	42.80B	39.36B	32.46B
Gross Profit	10.93B	10.81B	10.08B	11.63B	11.44B	9.09B
EBITDA	2.84B	2.76B	1.16B	3.29B	3.87B	2.09B
Net Income	869.00M	868.00M	-577.00M	1.39B	2.04B	477.71M
Balance Sheet
Total Assets	30.75B	32.97B	29.65B	30.46B	28.77B	24.70B
Cash, Cash Equivalents and Short-Term Investments	5.30B	6.50B	6.03B	5.21B	4.82B	4.09B
Total Debt	2.75B	3.10B	3.55B	2.72B	3.39B	4.58B
Total Liabilities	10.04B	10.93B	10.90B	11.40B	12.47B	12.27B
Stockholders Equity	20.68B	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: 494.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 494 is above the 20-day moving average (MA) of 458.25, above the 50-day MA of 430.48, and above the 200-day MA of 400.10, indicating a bullish trend. The MACD of 18.08 indicates Negative momentum. The RSI at 69.95 is Neutral, neither overbought nor oversold. The STOCH value of 62.52 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
6165	73 Outperform	¥13.51B	10.92	―	3.88%	5.57%	89.21%
6157	70 Outperform	¥21.91B	17.65	―	3.45%	0.97%	-10.47%
6380	69 Neutral	¥4.28B	26.95	―	0.99%	0.73%	56.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7726	63 Neutral	¥5.66B	67.40	―	1.98%	-6.69%	-80.28%
5967	61 Neutral	¥11.18B	11.46	―	2.18%	-2.69%	6.29%
6156	55 Neutral	¥7.24B	-42.92	―	5.68%	-0.91%	-319.62%

Punch Industry Co., Ltd. Corporate Events

Punch Industry Co., Ltd. Reports Financial Results with Mixed Performance

Punch Industry Co., Ltd. reported its consolidated financial results for the six months ended September 30, 2025, showing a modest increase in net sales by 2.9% year-on-year. The company experienced a significant rise in operating profit by 42.8% and ordinary profit by 70.7%, indicating improved operational efficiency and profitability. However, the comprehensive income was negative, reflecting certain financial challenges. The company has revised its forecast for the fiscal year ending March 31, 2026, with expectations of slight growth in net sales but a decrease in operating profit and profit attributable to owners of the parent, suggesting cautious optimism amidst market uncertainties.

Punch Industry Co., Ltd. Reports Q1 2025 Financial Results

Punch Industry Co., Ltd. reported a 5.3% increase in net sales for the three months ending June 30, 2025, compared to the same period last year. Despite the rise in sales, the company experienced a decline in ordinary profit by 5.6%, indicating challenges in maintaining profitability. The company’s forecast for the fiscal year ending March 31, 2026, shows modest growth in net sales but a significant drop in profit attributable to owners of the parent, suggesting potential operational challenges ahead.