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): 54.2
• Beta (1Y): 0.45
• Revenue Growth: -13.82%
• EPS Growth: 81.18%
• Country: JP
• Employees: 75
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.69
• 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: ¥397.00 ▲(19.94% Upside)
• Action: Reiterated Date: 12/30/25
• Date: Action: Reiterated 12/30/25

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

A meaningful gross-margin recovery in FY2025 signals improved pricing power or cost control at the core operating level. If sustained, higher gross margins provide structural support for profitability leverage as revenue stabilizes, easing the path to restored operating earnings.

Reduced leverage

Lower debt-to-equity reduces balance-sheet risk and interest burden, enhancing financial flexibility. Sustained moderate leverage gives the company longer runway to execute restructuring or invest in core machinery capabilities without a high refinancing or solvency risk over the next several quarters.

Operating cash flow recovered

A return to positive operating cash flow indicates underlying business operations can generate liquidity again. Persistent positive OCF would support working-capital needs and capex, lowering reliance on external funding and improving the firm's ability to execute medium-term strategic plans.

Negative Factors

Consecutive losses

Two straight loss-making years and a recent revenue decline reflect structural profitability weakness. Sustained negative net income erodes equity, constrains reinvestment, and undermines long-term viability of margin recovery unless revenue growth reaccelerates and fixed costs are meaningfully reduced.

Inconsistent free cash flow

Volatile free cash flow limits the company's ability to fund investments, pay dividends, or shore up the balance sheet without external financing. Persistent FCF inconsistency raises refinancing risk and makes long-term planning harder, especially if earnings remain depressed or capex needs rise.

Shrinking asset base & weak returns

Declining total assets and negative ROE indicate a shrinking operating base and impaired capital efficiency. Over time this can reduce competitive scale, limit ability to invest in growth or maintenance, and magnify the impact of fixed costs on margins unless structural recovery occurs.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.23B	3.41B	3.00B	2.72B	2.71B
Gross Profit	563.78M	415.75M	780.23M	745.53M	922.37M
EBITDA	-75.67M	-193.15M	263.83M	273.99M	264.29M
Net Income	-95.80M	-251.34M	126.67M	148.97M	109.06M
Balance Sheet
Total Assets	3.06B	3.49B	3.73B	3.20B	2.31B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.40B	1.40B	1.30B	870.60M
Total Debt	1.14B	1.50B	1.43B	722.88M	595.56M
Total Liabilities	1.47B	1.89B	1.83B	1.45B	1.03B
Stockholders Equity	1.58B	1.60B	1.90B	1.75B	1.28B
Cash Flow
Free Cash Flow	0.00	19.07M	-611.64M	-35.05M	107.34M
Operating Cash Flow	101.95M	22.26M	-579.82M	-28.20M	277.66M
Investing Cash Flow	53.63M	-19.93M	-41.92M	20.96M	-181.93M
Financing Cash Flow	-412.06M	-8.92M	716.38M	440.42M	-365.36M

Placo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 331.00
• 50DMA: Negative
• 100DMA: Positive
• 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:6347, the sentiment is Negative. The current price of 331 is below the 20-day moving average (MA) of 391.60, below the 50-day MA of 380.02, and above the 200-day MA of 302.37, indicating a neutral trend. The MACD of -5.76 indicates Positive momentum. The RSI at 41.96 is Neutral, neither overbought nor oversold. The STOCH value of 32.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6347.

Placo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6360	79 Outperform	¥5.54B	8.84	―	6.61%	-30.65%	-46.85%
6408	67 Neutral	¥6.89B	3.03	―	1.37%	-3.05%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6217	57 Neutral	¥3.19B	-8.35	―	―	-5.76%	-120.95%
6347	54 Neutral	¥3.54B	54.21	―	1.67%	-13.82%	81.18%
6757	49 Neutral	¥4.13B	40.07	―	4.06%	1.44%	-184.10%
6218	47 Neutral	¥3.62B	4.24	―	1.93%	-14.00%	-216.77%