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

• Market Cap: ¥10.04B
• Dividend Yield: 5.33%
• Average Volume (3M): 46.85K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.78
• Revenue Growth: 6.46%
• EPS Growth: N/A
• Country: JP
• Employees: 3,575
• Sector: Industrials
• Sector Strength: 90
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 8.93
• Shares Outstanding: 27,622,400
• 10 Day Avg. Volume: 27,580
• 30 Day Avg. Volume: 46,846
• PEG Ratio: 0.33
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 68 Neutral
• Price Target: ¥401.00 ▲(9.26%Upside)

The overall stock score of 68 is primarily driven by Punch Industry Co., Ltd.'s strong financial performance, highlighted by robust cash flow generation and financial stability. The favorable valuation further supports the score, although current technical analysis indicates bearish market momentum, which poses a risk. The absence of new corporate events or earnings call insights leaves these areas neutral in the assessment.

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

Moderate financial health with stable equity and improving revenue trends. Operational efficiency and cash flow management need enhancement to boost profitability and liquidity.

Income Statement

The company exhibits a moderate gross profit margin and a positive net income for the TTM (Trailing-Twelve-Months), indicating a rebound from previous losses. Revenue growth compared to the previous annual period shows a promising upward trend. However, EBIT and EBITDA margins are relatively low, suggesting room for improvement in operational efficiency.

Balance Sheet

The balance sheet is stable with a solid equity base. The debt-to-equity ratio is low, implying conservative leverage. Return on equity is modest but shows potential for improvement. The equity ratio indicates a healthy proportion of equity financing, reducing financial risk.

Cash Flow

Free cash flow is stagnant with no growth, and operating cash flow is surprisingly absent in the TTM data. The absence of operating cash flow compared to net income raises concerns about cash conversion efficiency. Historical cash flow data shows inconsistencies, highlighting potential volatility in cash generation.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
39.93B	38.34B	42.80B	39.36B	32.46B	35.35B
	Gross Profit
10.52B	10.08B	11.63B	11.44B	9.09B	9.19B
	EBIT
1.48B	1.24B	2.44B	3.04B	1.61B	835.66M
	EBITDA
2.34B	1.16B	3.29B	3.87B	2.09B	-706.21M
	Net Income Common Stockholders
839.00M	-577.00M	1.39B	2.04B	477.71M	-3.49B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.09B	6.03B	5.21B	4.82B	4.09B	3.39B
	Total Assets
31.82B	29.65B	30.46B	28.77B	24.70B	25.58B
	Total Debt
3.52B	3.55B	2.72B	3.39B	4.58B	6.08B
	Net Debt
-2.58B	-2.48B	-2.50B	-1.42B	484.34M	2.69B
	Total Liabilities
11.17B	10.90B	11.40B	12.47B	12.27B	13.83B
	Stockholders Equity
20.63B	18.72B	19.03B	16.29B	12.43B	11.74B
Cash Flow		Free Cash Flow
0.00	363.00M	1.27B	1.87B	2.36B	636.95M
	Operating Cash Flow
0.00	1.28B	2.56B	2.94B	2.94B	2.49B
	Investing Cash Flow
0.00	-680.00M	-1.55B	-1.10B	-670.20M	-1.79B
	Financing Cash Flow
0.00	-2.00M	-756.34M	-1.60B	-1.68B	-772.43M

Punch Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 367.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 367 is below the 20-day moving average (MA) of 367.95, below the 50-day MA of 374.33, and below the 200-day MA of 397.31, indicating a bearish trend. The MACD of -3.46 indicates Negative momentum. The RSI at 41.83 is Neutral, neither overbought nor oversold. The STOCH value of 20.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥11.46B	10.25		2.09%	10.47%	48.78%
6157	70 Outperform	¥17.12B	13.50		4.37%	3.18%	2.22%
6165	68 Neutral	¥10.04B	10.91		5.33%	6.46%	―
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
6156	65 Neutral	¥7.97B	151.50		5.14%	-2.14%	-48.88%
6380	60 Neutral	¥2.61B	25.95		1.60%	-0.66%	-32.76%
7726	55 Neutral	¥4.99B	28.91		3.43%	-6.59%	-65.40%

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.