PEGASUS CO. LTD (6262) AI Stock Analysis

• Market Cap: ¥17.99B
• Dividend Yield: 2.38%
• Average Volume (3M): 84.13K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 1.05
• Revenue Growth: 19.81%
• EPS Growth: N/A
• Country: JP
• Employees: 1,498
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 8.80
• Shares Outstanding: 24,828,600
• 10 Day Avg. Volume: 59,950
• 30 Day Avg. Volume: 84,130
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 9.30
• 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: 75 Outperform
• Price Target: ¥816.00 ▲(5.02% Upside)

PEGASUS CO. LTD scores well due to strong financial performance and bullish technical indicators. The company's robust revenue growth and solid balance sheet provide a stable foundation. While the stock's valuation is on the higher side, the technical analysis suggests continued positive momentum, making it an attractive option in the Industrial - Machinery sector.

Positive Factors

Strong revenue growth

A 25.6% revenue jump demonstrates durable market traction and stronger contract wins. Sustained top-line expansion supports scale benefits, funds R&D and capex, and strengthens bargaining power with OEMs—helping cement long-term competitiveness across commercial and defense segments.

Robust balance sheet

Very low leverage and a 70% equity base provide strong financial flexibility to pursue multiyear aerospace contracts, absorb cyclical shocks, and finance R&D or M&A without stressing liquidity. This lowers refinancing risk and supports durable operational continuity.

Improved cash generation

Transition from negative to positive free cash flow and strong operating cash relative to net income indicate meaningful improvement in cash conversion. Sustainable cash generation funds maintenance, MRO operations and reinvestment, reducing reliance on external funding long-term.

Negative Factors

Modest return on equity

A sub-3% ROE signals the company generates limited returns on shareholder capital despite scale. Persistently low ROE can constrain dividend growth and investor returns, suggesting asset base or pricing power needs improvement to sustainably lift profitability.

Earnings volatility

A ~42% drop in EPS points to material earnings instability that can reflect margin pressure, one-off costs, or cyclical demand swings. Continued EPS volatility undermines planning for capex, dividends and R&D investment, and raises execution risk over the medium term.

Cyclical commercial aerospace exposure

Heavy exposure to commercial aviation cycles entails demand sensitivity and long lead times for orders. Even with defense exposure, commercial downturns can compress revenue and margins for months, making earnings and cash generation vulnerable across economic cycles.

PEGASUS CO. LTD Business Overview & Revenue Model

Company Description

Pegasus Sewing Machine Mfg. Co., Ltd. manufactures and sells industrial sewing machines worldwide. The company offers overedger and safety stitch machines, interlock and double chain stitch machines, and automatic and labor-saving unit machines primarily used for sewing stretchy fabrics, such as underwear, sportswear, and other garments. It also produces and sells lighting, car audio, seat belt, engine bracket, wiper, and engine room parts. The company was formerly known as Mima Sewing Machine Industrial Co., Ltd. and changed its name to Pegasus Sewing Machine Mfg. Co., Ltd. in March 1959. Pegasus Sewing Machine Mfg. Co., Ltd. was founded in 1914 and is headquartered in Osaka, Japan.

How the Company Makes Money

PEGASUS CO. LTD generates revenue through multiple key streams, primarily from the sale of aerospace parts and systems to commercial airlines and defense organizations. The company engages in long-term contracts with major aircraft manufacturers, providing essential components that are critical for aircraft performance and safety. Additionally, PEGASUS earns income from maintenance, repair, and overhaul (MRO) services, ensuring that its clients' fleets operate at optimal efficiency. Strategic partnerships with leading aerospace firms enhance its market presence and facilitate collaborative development projects, further contributing to its revenue. The company also invests in research and development to innovate new products, which helps to capture emerging market opportunities and increase its overall profitability.

PEGASUS CO. LTD Financial Statement Overview

Summary

PEGASUS CO. LTD exhibits strong financial health with notable revenue growth and improved profitability metrics. The balance sheet is solid with low leverage and a strong equity position. Cash flow generation has improved, although there is potential for further enhancement in cash flow efficiency.

Income Statement

PEGASUS CO. LTD has demonstrated strong revenue growth, with a significant increase from 17.54 billion in 2024 to 22.04 billion in 2025, representing a growth rate of 25.64%. The gross profit margin improved to 33.62% in 2025, indicating efficient cost management. However, the net profit margin, although positive at 4.38%, shows room for improvement. The EBIT and EBITDA margins have also improved, reflecting better operational efficiency.

Balance Sheet

The company's balance sheet is robust, with a debt-to-equity ratio of 0.21, indicating low leverage and financial stability. The return on equity (ROE) is 2.97%, which is modest but positive. The equity ratio of 70.00% suggests a strong equity base, providing a cushion against liabilities.

Cash Flow

PEGASUS CO. LTD has shown a positive free cash flow growth rate, turning from negative in 2024 to positive in 2025, indicating improved cash generation. The operating cash flow to net income ratio is 2.53, suggesting strong cash flow relative to net income. However, the free cash flow to net income ratio is 1.45, indicating some room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.07B	22.04B	17.54B	25.29B	20.50B	12.42B
Gross Profit	7.77B	7.41B	5.33B	8.48B	6.64B	4.47B
EBITDA	2.51B	2.97B	1.75B	4.04B	2.84B	1.67B
Net Income	952.02M	964.91M	-72.80M	2.29B	1.57B	707.17M
Balance Sheet
Total Assets	43.86B	46.39B	42.95B	39.51B	35.13B	29.85B
Cash, Cash Equivalents and Short-Term Investments	9.49B	9.46B	9.03B	9.53B	9.77B	8.66B
Total Debt	5.86B	6.74B	8.01B	5.28B	5.22B	4.89B
Total Liabilities	11.76B	12.75B	12.35B	10.31B	9.77B	7.78B
Stockholders Equity	31.01B	32.48B	29.61B	28.30B	24.60B	21.38B
Cash Flow
Free Cash Flow	0.00	1.40B	-1.85B	213.32M	1.12B	1.79B
Operating Cash Flow	0.00	2.44B	765.57M	1.86B	1.88B	2.26B
Investing Cash Flow	0.00	-1.64B	-3.30B	-1.88B	-432.10M	643.39M
Financing Cash Flow	0.00	-1.52B	1.30B	-1.18B	-673.55M	-145.99M

PEGASUS CO. LTD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 777.00
• 50DMA: Negative
• 100DMA: Negative
• 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:6262, the sentiment is Negative. The current price of 777 is above the 20-day moving average (MA) of 755.15, above the 50-day MA of 768.46, and above the 200-day MA of 646.46, indicating a neutral trend. The MACD of -7.25 indicates Positive momentum. The RSI at 36.01 is Neutral, neither overbought nor oversold. The STOCH value of 25.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6262.

PEGASUS CO. LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6317	78 Outperform	¥16.54B	5.05	―	3.41%	-3.27%	572.42%
6262	75 Outperform	¥17.99B	29.61	―	2.38%	19.81%	―
6496	69 Neutral	¥23.50B	14.72	―	1.82%	34.70%	-8.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6210	57 Neutral	¥13.95B	-28.24	―	5.43%	1.46%	89.88%
6203	53 Neutral	¥17.06B	53.81	―	1.73%	26.09%	―

PEGASUS CO. LTD Corporate Events

Pegasus Posts Profit Decline Despite Higher Sales, Lifts Dividend and Buys Back Shares

Pegasus Co., Ltd. reported consolidated net sales of ¥16.5 billion for the nine months ended December 31, 2025, up 3.0% year on year, but operating profit fell 29.9% to ¥893 million and profit attributable to owners of parent dropped 36.5% to ¥628 million, reflecting pressure on profitability despite modest top-line growth. Total assets declined to ¥43.7 billion while equity remained high with a 70.7% equity-to-asset ratio, and the company revised its full-year forecast to project a slight 1.8% decline in net sales to ¥21.64 billion and a sharp fall in net profit, alongside a planned increase in annual dividends to ¥30 per share and the impact of a recently approved treasury share acquisition, signaling a stronger focus on shareholder returns amid weaker earnings.

The most recent analyst rating on (JP:6262) stock is a Buy with a Yen839.00 price target. To see the full list of analyst forecasts on PEGASUS CO. LTD stock, see the JP:6262 Stock Forecast page.