Improved Gross MarginA sharp improvement in gross margin in FY2025 suggests the company achieved better pricing or cost control. If sustained, higher gross margins provide structural room to cover fixed costs, improve operating leverage, and support recovery in operating profit over the medium term.

Lower LeverageA falling debt-to-equity ratio materially reduces financial risk and interest burden, strengthening liquidity headroom. Improved leverage enhances the firm's ability to fund working capital or selective investment without materially increasing insolvency risk over the next several quarters.

Operating Cash Flow Turned PositiveThe shift to positive operating cash flow signals that core operations generated cash in the latest year, reducing reliance on external funding. Sustained OCF supports working-capital needs and modest reinvestment, improving resilience versus prior years of cash stress.

Bears Say

Consecutive Net LossesTwo straight loss-making years with negative operating profit and net margins indicate the company has not yet restored profitable operations. Persistent losses can deplete equity, constrain strategic options, and make funding growth or restructuring harder over the medium term.

Inconsistent Free Cash FlowVolatile and inconsistent free cash flow limits the firm’s ability to fund capex, pay dividends, or pay down debt without external financing. This uneven cash generation raises the risk that a future downturn would force cuts to investment or require costly financing.

Smaller Operating BaseA declining asset base and a recent large revenue pullback undermine scale advantages and reduce flexibility to capture new opportunities. Shrinking operations can increase unit costs and make recovery harder, pressuring medium-term competitiveness and margins.

6347 FAQ

What was Placo Co., Ltd.’s price range in the past 12 months?

Placo Co., Ltd. lowest stock price was ¥182.00 and its highest was ¥478.00 in the past 12 months.

What is Placo Co., Ltd.’s market cap?

Placo Co., Ltd.’s market cap is ¥3.74B.

When is Placo Co., Ltd.’s upcoming earnings report date?

Placo Co., Ltd.’s upcoming earnings report date is Aug 07, 2026 which is in 150 days.

How were Placo Co., Ltd.’s earnings last quarter?

Placo Co., Ltd. released its earnings results on Feb 13, 2026. The company reported ¥1.69 earnings per share for the quarter, beating the consensus estimate of N/A by ¥1.69.

Is Placo Co., Ltd. overvalued?

According to Wall Street analysts Placo Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Placo Co., Ltd. pay dividends?

Placo Co., Ltd. pays a Annually dividend of ¥6 which represents an annual dividend yield of 1.67%. See more information on Placo Co., Ltd. dividends here

What is Placo Co., Ltd.’s EPS estimate?

Placo Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Placo Co., Ltd. have?

Placo Co., Ltd. has 10,287,476 shares outstanding.

What happened to Placo Co., Ltd.’s price movement after its last earnings report?

Placo Co., Ltd. reported an EPS of ¥1.69 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -1%.

Which hedge fund is a major shareholder of Placo Co., Ltd.?

Currently, no hedge funds are holding shares in JP:6347

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Placo Co., Ltd.

Placo Co., Ltd. manufactures and sells plastic molding machines and recycling equipment in Japan. It offers inflation film molding machines, blow molding machines, and environmental equipment. The company's products are used in the production of biodegradable plastics and automobile parts, as well as in the reduction of carbon dioxide emissions. The company was founded in 1940 and is headquartered in Saitama, Japan.