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

• Market Cap: ¥94.96B
• Dividend Yield: 3.67%
• Average Volume (3M): 335.76K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.85
• Revenue Growth: -3.78%
• EPS Growth: -16.61%
• Country: JP
• Employees: 5,602
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 25.93
• 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: ¥1,020.00
• Price Target Upside: 25.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 71.8
• Revenue Forecast (FY): ¥190.00B

• Rating: 79 Outperform
• Price Target: ¥1,127.00 ▲(38.11% Upside)
• Action: Reiterated Date: 12/02/25
• Date: Action: Reiterated 12/02/25

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

Very low leverage (D/E ~0.09) and a robust equity ratio provide durable financial flexibility. This reduces refinancing risk across automotive cycles, enables funding of strategic capex or working capital from internal resources, and preserves optionality for investments without heavy debt.

Consistent gross margins

Sustained gross margins near 13–14% indicate reliable manufacturing efficiency and cost discipline in chassis and axle production. Stable gross profitability creates a structural buffer against raw-material swings and supports medium-term operating earnings resilience.

Diversified OEM & services mix

Revenue from OEM chassis/axle parts, construction-equipment components and logistics services reduces dependence on a single end market. This product-service diversification smooths cyclical auto demand, leverages fixed capacity and creates cross-selling synergies over multiple cycles.

Negative Factors

Declining net profit margin

A falling net margin compresses retained earnings and weakens return on equity. Persistent margin erosion suggests cost pressures or limited pricing power, reducing internal funds for growth and making long-term profitability more sensitive to input-cost volatility.

Negative free cash flow in 2025

Negative FCF driven by elevated capex reduces liquidity and heightens reliance on external funding if prolonged. While investment may be strategic, sustained negative cash conversion increases execution and financing risk and can constrain ability to pursue opportunistic projects.

Inconsistent revenue growth

Volatile top-line performance reflects exposure to OEM production cycles and model-mix effects. Inconsistent revenue complicates capacity planning and margin recovery, making medium-term forecasting and reinvestment decisions less predictable absent new structural demand drivers.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 816.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 816 is below the 20-day moving average (MA) of 938.20, below the 50-day MA of 881.66, and above the 200-day MA of 690.87, indicating a bullish trend. The MACD of 33.17 indicates Negative momentum. The RSI at 75.27 is Negative, neither overbought nor oversold. The STOCH value of 89.58 is Negative, 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
5970	85 Outperform	¥88.82B	9.02	―	4.95%	-5.89%	8.95%
6463	80 Outperform	¥94.46B	11.06	―	3.85%	-4.47%	29.68%
7246	79 Outperform	¥94.96B	13.63	5.20%	3.67%	-3.78%	-16.61%
7239	76 Outperform	¥80.53B	7.14	13.32%	5.00%	-10.87%	153.16%
7231	71 Outperform	¥84.70B	7.70	―	3.66%	-6.79%	303.74%
7245	65 Neutral	¥57.32B	15.57	5.33%	2.09%	1.26%	56.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Press Kogyo Co., Ltd. Corporate Events

Press Kogyo Raises Full-Year Earnings Forecast on Weaker Yen Boost

Press Kogyo Co., Ltd. has revised upward its full-year consolidated forecast for the fiscal year ending March 31, 2026, citing expectations that net sales and all major profit metrics will surpass its previous outlook. The company now projects net sales of ¥200 billion, operating profit of ¥12 billion, ordinary profit of ¥12.5 billion, and profit attributable to owners of parent of ¥7 billion, all above both the prior forecast and the results for the year ended March 31, 2025.

Management attributes the stronger outlook partly to the current business environment, including favorable foreign currency translation effects from a weaker yen. Despite the earnings upgrade, Press Kogyo has left its dividend forecast unchanged, signaling confidence in its cash flow while maintaining a stable shareholder return policy.

The most recent analyst rating on (JP:7246) stock is a Buy with a Yen1031.00 price target. To see the full list of analyst forecasts on Press Kogyo Co., Ltd. stock, see the JP:7246 Stock Forecast page.

Press Kogyo Lifts Profit, Keeps Higher Dividend as Treasury Share Buyback Completed

Press Kogyo reported consolidated net sales of ¥141.4 billion for the nine months ended December 31, 2025, up 2.2% year on year, with operating profit jumping 23.4% to ¥8.9 billion and profit attributable to owners of parent climbing 27.9% to ¥5.7 billion, reflecting improved profitability and higher comprehensive income. The balance sheet remained solid with an equity ratio of 58.1%, the company maintained its dividend forecast at an increased annual ¥35 per share for FY2026, and it upgraded full-year guidance to ¥200 billion in net sales and ¥7.0 billion in profit attributable to owners of parent, incorporating the completed acquisition and cancellation of treasury shares, signaling continued shareholder-return focus and confidence in earnings momentum.

The most recent analyst rating on (JP:7246) stock is a Buy with a Yen1031.00 price target. To see the full list of analyst forecasts on Press Kogyo Co., Ltd. stock, see the JP:7246 Stock Forecast page.

Press Kogyo to Dissolve Loss-Making Chinese Subsidiary in Efficiency Drive

Press Kogyo Co., Ltd. has decided to dissolve PK Manufacturing (Suzhou) Co., Ltd., its wholly owned consolidated subsidiary in China that manufactures construction machinery-related parts, as part of efforts to streamline and improve the efficiency of its operations in the Chinese market amid changing business conditions. The Suzhou subsidiary, established in 2010, has posted consecutive operating and net losses in recent years, and its liquidation, scheduled for completion by December 2028, is expected to have only a negligible impact on Press Kogyo’s consolidated earnings forecast for the fiscal year ending March 31, 2026, according to the company.

The most recent analyst rating on (JP:7246) stock is a Buy with a Yen939.00 price target. To see the full list of analyst forecasts on Press Kogyo Co., Ltd. stock, see the JP:7246 Stock Forecast page.

Press Kogyo Completes Treasury Share Acquisition and Cancellation

Press Kogyo Co., Ltd. has completed the acquisition and cancellation of a significant number of its treasury shares, as per the resolutions passed by its board of directors. This strategic move, involving the acquisition of 1,933,600 shares for approximately 1.5 billion yen and their subsequent cancellation, aims to optimize the company’s capital structure and potentially enhance shareholder value.

The most recent analyst rating on (JP:7246) stock is a Buy with a Yen939.00 price target. To see the full list of analyst forecasts on Press Kogyo Co., Ltd. stock, see the JP:7246 Stock Forecast page.