Placo Co., Ltd. (6347) AI Stock Analysis

• Market Cap: ¥3.54B
• Dividend Yield: 1.67%
• Average Volume (3M): 166.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: -13.82%
• EPS Growth: 81.18%
• Country: JP
• Employees: 75
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -2.04
• Shares Outstanding: 10,287,476
• 10 Day Avg. Volume: 238,100
• 30 Day Avg. Volume: 166,063
• PEG Ratio: 0.32
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.87
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ¥376.00 ▲(13.60% Upside)

The score is held back primarily by weak financial performance (recent losses, revenue decline, and inconsistent free cash flow), partially offset by a favorable technical trend (price above key moving averages with positive MACD) and a modest dividend yield despite a negative P/E.

Positive Factors

Improved Gross Margin

The improvement in gross margin suggests better pricing strategies or cost control, which can enhance profitability and competitive positioning over time.

Lower Leverage

Reduced leverage decreases financial risk, providing more flexibility for strategic investments and weathering economic downturns.

Positive Operating Cash Flow

Positive operating cash flow indicates improved cash generation from core operations, enhancing the company's ability to fund growth and reduce reliance on external financing.

Negative Factors

Revenue Decline

A decline in revenue can signal weakening demand or competitive pressures, potentially impacting long-term growth prospects and market share.

Inconsistent Free Cash Flow

Inconsistent free cash flow limits financial flexibility, making it challenging to invest in growth opportunities or return capital to shareholders consistently.

Profitability Weakness

Sustained profitability weakness can erode equity and reduce the company's ability to invest in innovation or withstand competitive pressures.

Placo Co., Ltd. Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

Placo Co., Ltd. generates revenue through the sale of its industrial machinery and equipment to various industries such as construction and logistics. The company's revenue streams include direct sales of machinery, parts, and accessories, as well as maintenance and after-sales services offered to customers. Key factors contributing to its earnings include its established customer base in Japan and potential export opportunities. Any significant partnerships or collaborations with other companies or governmental bodies further enhance its market position and revenue potential.

Placo Co., Ltd. Financial Statement Overview

Summary

Financial performance is pressured by two consecutive loss-making years and a notable revenue pullback in the latest period. Positives include improved gross margin in FY2025, lower leverage (debt-to-equity improved), and operating cash flow turning positive in FY2025, but free cash flow remains inconsistent.

Income Statement

The earnings profile has deteriorated meaningfully: the company moved from solid profitability in FY2022–FY2023 (positive EBIT and net income) to losses in FY2024 and FY2025, with negative operating profit and negative net margins in both years. A key positive is the sharp improvement in gross margin in FY2025 versus FY2024, suggesting better pricing and/or cost control, but operating costs still outweigh that improvement. Revenue growth was healthy in FY2023–FY2024, yet the latest year shows a large revenue pullback, increasing volatility and making the recovery less certain.

Balance Sheet

Leverage is moderate for the sector and has improved recently: debt-to-equity declined from roughly 0.93 in FY2024 to about 0.73 in FY2025, which reduces balance-sheet risk. However, profitability weakness is pressuring returns on equity (negative in FY2024–FY2025), and total assets have trended down over the last two years, indicating a smaller operating base and potentially reduced flexibility. Overall, the balance sheet looks workable, but sustained losses could erode equity over time.

Cash Flow

Cash generation is mixed and somewhat volatile. Operating cash flow turned positive in FY2025 after being very weak in FY2024 and deeply negative in FY2023, which is a constructive near-term shift. However, free cash flow is not consistently positive (negative in FY2022–FY2023, modestly positive in FY2024, and flat/zero in FY2025), limiting financial flexibility. Cash flow support for earnings also looks uneven across years, reinforcing that working-capital and investment swings remain a key risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	697.76M	2.23B	3.41B	3.00B	2.72B	2.71B
Gross Profit	207.33M	575.61M	429.30M	794.44M	761.04M	938.20M
EBITDA	35.26M	-12.30M	-195.68M	266.98M	283.22M	263.89M
Net Income	38.55M	-95.80M	-251.34M	126.67M	148.97M	109.06M
Balance Sheet
Total Assets	3.05B	3.05B	3.49B	3.73B	3.20B	2.31B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.14B	1.40B	1.40B	1.30B	870.60M
Total Debt	1.15B	1.15B	1.50B	1.43B	722.88M	595.56M
Total Liabilities	1.47B	1.47B	1.89B	1.83B	1.45B	1.03B
Stockholders Equity	1.58B	1.58B	1.60B	1.90B	1.75B	1.28B
Cash Flow
Free Cash Flow	0.00	0.00	18.13M	-613.21M	-37.26M	97.75M
Operating Cash Flow	0.00	101.95M	22.26M	-579.82M	-28.20M	277.66M
Investing Cash Flow	0.00	53.63M	-19.93M	-41.92M	20.96M	-181.93M
Financing Cash Flow	0.00	-412.06M	-8.92M	716.38M	440.42M	-365.36M

Placo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 331.00
• 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:6347, the sentiment is Positive. The current price of 331 is below the 20-day moving average (MA) of 341.50, below the 50-day MA of 335.02, and above the 200-day MA of 268.95, indicating a bullish trend. The MACD of 4.43 indicates Negative momentum. The RSI at 55.20 is Neutral, neither overbought nor oversold. The STOCH value of 41.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6347.

Placo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6400	78 Outperform	¥2.55B	9.52	7.95%	2.50%	3.64%	17.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7719	63 Neutral	¥2.17B	18.42	―	―	21.54%	―
6233	62 Neutral	¥2.20B	12.74	―	2.46%	-2.17%	126.99%
6147	57 Neutral	¥1.46B	-14.91	―	3.08%	-4.18%	-192.32%
6347	54 Neutral	¥3.54B	-116.22	―	1.67%	-13.82%	81.18%
6276	49 Neutral	¥1.21B	-1.84	―	2.93%	-20.33%	-1780.05%