Press Kogyo Co., Ltd. (7246) AI Stock Analysis

• Market Cap: ¥77.21B
• Dividend Yield: 3.67%
• Average Volume (3M): 335.76K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.81
• Revenue Growth: -3.78%
• EPS Growth: -16.61%
• Country: JP
• Employees: 5,602
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 17.73
• Shares Outstanding: 100,000,000
• 10 Day Avg. Volume: 340,440
• 30 Day Avg. Volume: 335,763
• PEG Ratio: -0.40
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.29
• P/FCF Ratio: -2.65K
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: ¥939.00 ▲(14.79% Upside)

Press Kogyo Co., Ltd. scores well due to strong technical indicators and a solid valuation. Financial performance is stable but faces challenges in revenue growth and cash flow sustainability. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong Balance Sheet

A declining debt-to-equity ratio indicates prudent financial management, enhancing financial stability and reducing risk.

Efficient Operations

Efficient operations suggest the company can maintain profitability and competitiveness, supporting long-term growth.

Consistent Gross Profit Margin

Consistent gross profit margins indicate effective cost management, which is crucial for sustaining profitability.

Negative Factors

Declining Revenue Growth

Inconsistent revenue growth can hinder the company's ability to expand and invest in new opportunities, affecting long-term prospects.

Decreasing Net Profit Margin

A declining net profit margin suggests increased cost pressures or reduced pricing power, impacting overall profitability.

Negative Free Cash Flow

Negative free cash flow may limit the company's ability to invest in growth initiatives and could strain financial resources.

Press Kogyo Co., Ltd. Business Overview & Revenue Model

Company Description

Press Kogyo Co., Ltd. engages in the manufacture and sale of automotive and construction machinery parts in Japan and internationally. It offers chassis frames; axles; cabins for construction machinery; and other automotive products, including front bumpers, axle shafts, ABS sensor rings, instrument panels, cowl top panels, door beams, ladder frames, rear under-run protectors for medium duty trucks, and front under-run protectors for heavy duty trucks. The company also provides plastic parts, such as cab rear covers, side covers, transmission covers, under covers, air cleaner brackets, urea water tank brackets, battery trays, and front tire splashes; dies and automatic welders; automated parking systems and parking palette; specially equipped vehicles; and torch cleaners. Press Kogyo Co., Ltd. was founded in 1925 and is headquartered in Kawasaki, Japan.

How the Company Makes Money

Press Kogyo generates revenue primarily through the sale of its precision metal components to automotive manufacturers and industrial machinery producers. The company operates on a B2B (business-to-business) model, securing long-term contracts and partnerships with major automotive companies, which provide a steady stream of income. Key revenue streams include the production of stamped and pressed parts, customized metal components tailored to specific client needs, and ongoing maintenance and support services for its manufacturing systems. Additionally, Press Kogyo benefits from economies of scale, as increased production efficiency and lower per-unit costs contribute to higher profit margins. The company's focus on research and development also enables it to innovate and expand its product offerings, attracting new clients and retaining existing ones.

Press Kogyo Co., Ltd. Financial Statement Overview

Summary

Press Kogyo Co., Ltd. shows solid financial health with a strong balance sheet and efficient operations. However, challenges in revenue growth, declining net profit margins, and concerns over cash flow sustainability slightly dampen the overall financial performance.

Income Statement

Press Kogyo Co., Ltd. has shown a stable gross profit margin around 13-14% over the years, indicating consistent cost management. However, there has been a decline in net profit margin from 4.1% in 2024 to 3.2% in 2025, suggesting some pressures on net income. Revenue growth has been inconsistent, with a notable decrease from 2024 to 2025. EBIT and EBITDA margins are healthy, though slightly declining, which reflects operational efficiency but also hints at potential challenges in maintaining margins.

Balance Sheet

The company maintains a strong balance sheet with a declining debt-to-equity ratio, reaching 0.09 in 2025, which indicates prudent financial management. The equity ratio is robust at 57.6% in 2025, highlighting a strong equity base relative to assets. Return on Equity (ROE) has slightly decreased, pointing to challenges in generating returns, but remains reasonable at around 5.3% in 2025.

Cash Flow

Cash flow management shows mixed results. Operating cash flow remains strong but has decreased significantly from 2024 to 2025. The free cash flow turned negative in 2025, affected by high capital expenditures, which may raise concerns about cash reserves and investment efficiency. The ratio of operating cash flow to net income is favorable, illustrating good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	186.75B	189.88B	197.82B	184.84B	160.06B	153.72B
Gross Profit	25.32B	25.76B	28.44B	27.71B	25.79B	17.26B
EBITDA	22.21B	24.09B	26.07B	22.93B	21.59B	12.57B
Net Income	5.23B	6.08B	8.08B	6.79B	7.11B	1.49B
Balance Sheet
Total Assets	193.98B	197.76B	191.74B	178.40B	172.62B	152.61B
Cash, Cash Equivalents and Short-Term Investments	22.73B	26.27B	28.72B	22.34B	21.57B	17.15B
Total Debt	8.26B	10.07B	7.75B	9.37B	13.94B	10.05B
Total Liabilities	70.52B	70.28B	71.30B	67.32B	69.40B	57.01B
Stockholders Equity	111.66B	113.99B	107.82B	100.27B	94.79B	88.94B
Cash Flow
Free Cash Flow	0.00	-21.00M	11.86B	9.69B	4.93B	-2.61B
Operating Cash Flow	0.00	18.61B	27.23B	21.19B	15.39B	7.10B
Investing Cash Flow	0.00	-17.71B	-14.13B	-9.78B	-10.48B	-9.89B
Financing Cash Flow	0.00	-4.35B	-7.02B	-10.84B	-594.00M	-1.99B

Press Kogyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 818.00
• 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:7246, the sentiment is Positive. The current price of 818 is above the 20-day moving average (MA) of 809.35, above the 50-day MA of 730.54, and above the 200-day MA of 608.00, indicating a bullish trend. The MACD of 21.50 indicates Positive momentum. The RSI at 64.83 is Neutral, neither overbought nor oversold. The STOCH value of 44.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7246.

Press Kogyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7246	79 Outperform	¥77.21B	14.00	5.20%	3.67%	-3.78%	-16.61%
7239	76 Outperform	¥71.10B	5.51	13.32%	5.00%	-10.87%	153.16%
7229	72 Outperform	¥45.05B	8.64	―	2.37%	-13.35%	-19.38%
4246	71 Outperform	¥53.41B	7.74	8.48%	4.59%	1.04%	18.43%
7231	71 Outperform	¥72.00B	8.55	―	3.66%	-6.79%	303.74%
5992	64 Neutral	¥87.93B	45.19	―	1.61%	6.81%	6.68%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Press Kogyo Co., Ltd. Corporate Events

Press Kogyo Announces Strategic Share Buyback and Cancellation

Press Kogyo Co., Ltd. announced its decision to acquire and subsequently cancel up to 2.5% of its common stock as part of a strategic capital policy aimed at returning profits to shareholders. This move is expected to enhance shareholder value and provide the company with greater flexibility in executing its capital strategies.

Press Kogyo Revises Year-End Dividend Forecast Upward

Press Kogyo Co., Ltd. announced a revision to its year-end dividend forecast for the fiscal year ending March 31, 2026, increasing it from 17 yen to 19 yen per share, resulting in an annual dividend of 35 yen per share. This decision reflects the company’s positive outlook on its financial performance, as indicated by the upward revision of its consolidated financial results forecast, potentially enhancing shareholder value and signaling confidence in its operational strategy.

Press Kogyo Revises Financial Forecast Upward for FY 2026

Press Kogyo Co., Ltd. has revised its full-year consolidated financial forecast for the fiscal year ending March 31, 2026, reflecting an expected increase in net sales, operating profit, and profit attributable to owners of the parent. This upward revision is attributed to increased production volumes in the U.S. and Thailand, as well as a weaker yen, enhancing the company’s financial outlook.

Press Kogyo Reports Financial Results and Strategic Moves for 2025

Press Kogyo Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a slight decline in net sales by 3.2% compared to the previous year. Despite this, the company experienced an increase in operating profit by 8.7% and ordinary profit by 4.4%, indicating improved operational efficiency. The company also announced revisions to its cash dividend forecast, with an increase expected for the year ending March 31, 2026. Additionally, Press Kogyo plans to acquire treasury shares, which may impact earnings per share. These strategic financial decisions reflect the company’s efforts to enhance shareholder value and strengthen its market position.