PULSTEC INDUSTRIAL CO., LTD. (6894) AI Stock Analysis

• Market Cap: ¥3.16B
• Dividend Yield: 3.92%
• Average Volume (3M): 1.23K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.38
• Revenue Growth: -1.32%
• EPS Growth: 45.44%
• Country: JP
• Employees: 128
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 64.79
• Shares Outstanding: 1,393,459
• 10 Day Avg. Volume: 940
• 30 Day Avg. Volume: 1,233
• PEG Ratio: 0.76
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.96
• P/FCF Ratio: -15.76
• 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: 76 Outperform
• Price Target: ¥2,652.00 ▲(25.09% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

The stock of PULSTEC INDUSTRIAL CO., LTD. scores well due to its strong valuation metrics and positive technical indicators. While financial performance is stable, the main risks are inconsistent revenue growth and cash flow volatility. The lack of earnings call and corporate events data does not impact the score significantly.

Positive Factors

Margin Sustainability

Consistently high gross margins (>35%) and net margins (>10%) indicate durable pricing power and product differentiation in inspection equipment. These margins support internal R&D/capex, provide buffer to sales volatility, and underpin long-term cash generation and reinvestment capacity.

Balance Sheet Strength

Low leverage and a high equity ratio give the company financial flexibility to fund investments or weather downturns without relying on expensive external financing. A healthy ROE signals efficient use of capital, supporting sustainable shareholder returns over time.

Durable Business Model

Supplying inspection and measurement systems to manufacturers addresses ongoing quality-control needs that persist across cycles. The niche, specialized nature of the equipment fosters customer stickiness and recurring aftermarket or upgrade demand, supporting steady long-term revenue.

Negative Factors

Inconsistent Revenue Growth

Negative recent revenue growth and a pattern of inconsistency undermine scale economies and make long-range planning harder. Without stable top-line expansion, investments in product development or market expansion may be constrained, limiting sustainable earnings growth.

Volatile Cash Flows

Operating cash flow volatility and intermittent negative periods reduce financial flexibility for capex, R&D, and dividends. This unpredictability raises refinancing and timing risk, making it harder to execute consistent long-term investment or return-of-capital plans.

Limited Scale and Resources

A relatively small workforce suggests limited internal resources to scale operations, accelerate new product development, or expand global sales. Smaller scale can constrain competitive reach and increase reliance on key personnel, elevating execution risk over the medium term.

PULSTEC INDUSTRIAL CO., LTD. Business Overview & Revenue Model

Company Description

Pulstec Industrial Co., Ltd. manufactures and sells electronic applied equipment and systems in Japan, Asia, Europe, North America, and internationally. It offers µ-X360s portable X-ray residual stress analyzer, which is used in various industrial fields, such as transportation equipment, bearings, iron and steel structure and components, electric power, heavy machines, and surface modification. The company also offers non-contact surface hardness variation scanner for use in the inspection of machining burn or grinding burn, and quenching variation after heat treatment, as well as destructive or visual inspection by nital etching. In addition, it provides 3D scanners; wavefront sensors; optical disc evaluation systems/stamper evaluation systems for evaluating Blu-ray disc production line and quality control purposes; checkers for inspecting Blu-ray discs; facilitators for use in the inspection of optical discs; and BCA writers that are used in Blu-ray disc production line. The company serves clients in steel and non-ferrous metal, electric machinery and apparatus, car, precision instrument, chemical, and machine industries, as well as trading companies, university research institutions, and other sectors. Pulstec Industrial Co., Ltd. was incorporated in 1969 and is headquartered in Hamamatsu, Japan.

How the Company Makes Money

PULSTEC INDUSTRIAL CO., LTD. generates revenue primarily through the sale of its industrial equipment and automation solutions. Key revenue streams include direct sales of products to manufacturers and businesses that require advanced automation technology. The company may also earn income from service contracts, maintenance agreements, and consulting services related to the implementation and optimization of its equipment. Significant partnerships with major players in various industries further enhance its market reach and revenue potential. Additionally, PULSTEC may benefit from government contracts and grants aimed at promoting industrial innovation and automation, contributing to its overall earnings.

PULSTEC INDUSTRIAL CO., LTD. Financial Statement Overview

Summary

PULSTEC INDUSTRIAL CO., LTD. demonstrates strong profitability and a robust financial position with low leverage. However, inconsistent revenue growth and volatile cash flows could pose challenges. Overall, the company remains financially stable with opportunities for growth if revenue trends stabilize.

Income Statement

The company has maintained strong gross profit margins above 35% across the years, indicating efficient cost management. However, revenue growth has been inconsistent, with a decline in the latest year. Net profit margin is healthy, consistently above 10%, highlighting profitability.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio, reflecting strong financial stability. The equity ratio is high, showing that the company is well-capitalized. ROE is healthy, indicating efficient use of equity to generate profits.

Cash Flow

Cash flow from operations shows volatility with periods of negative cash flow, posing a risk. Free cash flow has seen significant fluctuations, affecting financial flexibility. The operating cash flow to net income ratio is generally favorable, suggesting that earnings are well-supported by cash flows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.45B	2.49B	2.61B	2.45B	2.45B	2.09B
Gross Profit	931.24M	943.92M	1.03B	938.49M	896.61M	753.67M
EBITDA	404.91M	398.47M	487.13M	391.53M	425.56M	269.36M
Net Income	338.20M	355.98M	327.01M	242.93M	340.41M	156.57M
Balance Sheet
Total Assets	4.67B	5.03B	5.18B	4.52B	4.65B	4.00B
Cash, Cash Equivalents and Short-Term Investments	1.89B	1.95B	2.27B	1.98B	2.21B	1.68B
Total Debt	2.16M	3.74M	14.06M	64.38M	174.70M	185.02M
Total Liabilities	973.69M	1.17B	1.51B	1.10B	1.37B	1.01B
Stockholders Equity	3.69B	3.86B	3.67B	3.42B	3.27B	3.00B
Cash Flow
Free Cash Flow	0.00	-150.93M	267.56M	-131.56M	603.78M	617.51M
Operating Cash Flow	0.00	153.13M	398.87M	-105.44M	658.53M	646.11M
Investing Cash Flow	0.00	-374.62M	89.34M	23.86M	-66.30M	-28.40M
Financing Cash Flow	0.00	-159.20M	-146.10M	-226.09M	-71.91M	54.69M

PULSTEC INDUSTRIAL CO., LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2120.00
• 50DMA: Positive
• 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:6894, the sentiment is Positive. The current price of 2120 is below the 20-day moving average (MA) of 2325.05, below the 50-day MA of 2230.14, and above the 200-day MA of 1999.67, indicating a bullish trend. The MACD of 28.36 indicates Positive momentum. The RSI at 53.77 is Neutral, neither overbought nor oversold. The STOCH value of 27.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6894.

PULSTEC INDUSTRIAL CO., LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6894	76 Outperform	¥3.16B	7.86	―	3.92%	-1.32%	45.44%
6647	76 Outperform	¥3.78B	5.14	―	2.20%	14.26%	280.42%
6668	70 Outperform	¥16.92B	9.82	―	1.66%	12.23%	65.42%
6748	70 Outperform	¥10.83B	8.70	―	2.23%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7567	60 Neutral	¥2.62B	38.78	―	2.09%	-5.35%	-36.71%
6943	51 Neutral	¥4.29B	-34.55	―	1.79%	-10.43%	-368.47%