PEGASUS CO. LTD (6262) AI Stock Analysis

• Market Cap: ¥19.30B
• Dividend Yield: 2.38%
• Average Volume (3M): 84.13K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 1.11
• 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): 56.4
• Revenue Forecast (FY): ¥24.40B

• Rating: 75 Outperform
• Price Target: ¥844.00 ▲(8.62% Upside)
• Action: Reiterated Date: 11/08/25
• Date: Action: Reiterated 11/08/25

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

Sustained Revenue Growth

A 25.6% year-over-year revenue jump indicates expanding demand and stronger market penetration in sewing systems. This durable top-line growth supports scale economies, expands installed base for parts/services, and underpins revenue resilience across business cycles over the next 2–6 months.

Low Leverage / Strong Equity Base

Very low leverage and a high equity ratio provide financial flexibility and a buffer against downturns. This strengthens capacity for capex, R&D, or selective M&A without stressing liquidity, enhancing multi-month resilience of operations and strategic optionality.

Improving Margins and Cash Generation

Rising gross margin alongside a shift to positive free cash flow and strong operating-cash-to-net-income conversion reflects better cost control and cash quality. These trends support sustained reinvestment and debt neutrality, improving long-term durability of earnings and funding capacity.

Negative Factors

Earnings Volatility (EPS Decline)

A near-42% drop in EPS signals material earnings volatility that can reflect margin pressure, one-offs, or operational inefficiencies. Such volatility undermines predictability of future profits and complicates planning for dividends or reinvestment, posing a medium-term operational risk.

Low Return on Equity

An ROE below 3% indicates the company generates limited profit from shareholders' capital. Despite a strong equity base, low ROE suggests slow capital turnover or margin constraints, which can limit shareholder returns and make equity capital less productive over the next several quarters.

Profitability and Cash Efficiency Still Limited

A modest net margin and FCF-to-income ratio above 1 but not high indicate profitability and cash conversion have improved yet remain constrained. This limits excess cash for growth initiatives or payouts and means further operational gains are needed to sustain long-term competitive strength.

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 generates revenue primarily from selling industrial sewing machines and related equipment to manufacturers and production facilities. Its earnings are driven by (1) sales of new industrial sewing machine units/systems for factory production lines, (2) sales of replacement parts/consumables and other related components used to maintain and operate installed machines, and (3) service-related revenue associated with supporting deployed equipment (e.g., maintenance/repair activities) where provided. Information on significant partnerships, customer concentration, pricing structure, or the breakdown by geography/product line is null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.07B	22.04B	17.54B	25.29B	20.50B	12.42B
Gross Profit	7.77B	7.11B	5.06B	8.18B	6.39B	4.26B
EBITDA	3.14B	2.89B	1.09B	3.62B	2.68B	1.28B
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	35.43B	29.92B
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	10.06B	7.86B
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	232.93M	1.12B	1.80B
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: Positive
• Last Price: 777.00
• 50DMA: Positive
• 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 Positive. The current price of 777 is below the 20-day moving average (MA) of 789.85, above the 50-day MA of 771.64, and above the 200-day MA of 694.54, indicating a neutral trend. The MACD of -0.92 indicates Positive momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 73.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6262.

PEGASUS CO. LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6262	75 Outperform	¥19.30B	22.08	―	2.38%	19.81%	―
6482	74 Outperform	¥22.87B	46.66	―	2.77%	-4.47%	-24.47%
6203	65 Neutral	¥19.76B	8.12	―	1.73%	26.09%	―
6440	65 Neutral	¥20.15B	10.67	―	―	-2.84%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6151	59 Neutral	¥31.59B	4.17	―	2.13%	1.13%	-66.14%
6217	57 Neutral	¥3.19B	-8.35	―	―	-5.76%	-120.95%

PEGASUS CO. LTD Corporate Events

Pegasus Highlights Capital-Cost Focus in FY2026 Q3 Briefing

Pegasus Co. Ltd. has released briefing materials for the third quarter of the fiscal year ending March 31, 2026, outlining its latest financial performance and updated management approach. The company is emphasizing capital cost considerations, revising its capital cost assumptions, and introducing a new balance sheet management policy aimed at enhancing financial discipline.

The materials also provide an overview of third-quarter results, a consolidated earnings forecast for the full fiscal year, and the shareholder return policy for the period. By formally linking its operations and financial planning to capital costs and share price awareness, Pegasus signals a stronger focus on value creation and transparency for investors and other stakeholders.

The most recent analyst rating on (JP:6262) stock is a Buy with a Yen849.00 price target. To see the full list of analyst forecasts on PEGASUS CO. LTD stock, see the JP:6262 Stock Forecast page.

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.