Pilot Corporation (7846) AI Stock Analysis

• Market Cap: ¥178.72B
• Dividend Yield: 2.59%
• Average Volume (3M): 85.03K
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.40
• Revenue Growth: -0.26%
• EPS Growth: 3.35%
• Country: JP
• Employees: 2,965
• Sector: Industrials
• Sector Strength: 72
• Industry: Business Equipment & Supplies
• EPS (TTM): 71.29
• Shares Outstanding: 40,905,200
• 10 Day Avg. Volume: 70,400
• 30 Day Avg. Volume: 85,033
• PEG Ratio: 1.03
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 16.47
• 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: 75 Outperform
• Price Target: ¥5,275.00 ▲(10.13% Upside)

Pilot Corporation's strong financial performance and reasonable valuation are the primary drivers of its stock score. The technical analysis indicates a strong upward trend, though caution is advised due to overbought signals. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Financial Stability

Pilot Corporation's strong equity ratio and low debt-to-equity ratio indicate robust financial health, providing resilience against economic fluctuations and enabling strategic investments.

Profitability

High gross profit margins reflect Pilot's effective cost management and pricing power, contributing to sustained profitability and competitive advantage in the market.

Cash Generation

Strong cash generation capability enhances Pilot's ability to fund operations, invest in growth opportunities, and return value to shareholders, supporting long-term financial sustainability.

Negative Factors

Profit Decline

A significant decline in profit attributable to owners indicates potential issues in cost control or revenue generation, which could hinder future profitability and shareholder returns.

Operational Efficiency

A decrease in EBIT margin suggests rising operational costs, which could pressure profitability if not managed effectively, affecting long-term financial performance.

Revenue Decline

A decline in net sales could signal challenges in market demand or competitive pressures, potentially impacting Pilot's growth trajectory if not addressed.

Pilot Corporation Business Overview & Revenue Model

Company Description

Pilot Corporation (7846) is a leading Japanese company specializing in the manufacturing and distribution of writing instruments, stationery, and related products. The company operates primarily in the consumer goods sector, offering a wide range of pens, pencils, markers, and other office supplies, as well as high-quality inks and refills. Pilot is known for its innovation in product design and technology, catering to both individual consumers and businesses globally.

How the Company Makes Money

Pilot Corporation generates revenue primarily through the sale of its writing instruments and stationery products. The company has a diverse revenue model that includes direct sales to consumers through retail channels, as well as wholesale distribution to educational institutions and corporate clients. Key revenue streams include sales from flagship products like gel pens, fountain pens, and markers, which are popular both domestically in Japan and internationally. Additionally, Pilot benefits from strategic partnerships with various retailers and distributors, enhancing its market reach and brand visibility. Seasonal promotions and educational programs also contribute to increased sales during peak periods, further bolstering the company's earnings.

Pilot Corporation Financial Statement Overview

Summary

Pilot Corporation demonstrates strong financial health with consistent revenue growth, high profitability margins, and a robust balance sheet with low leverage. The cash flow statement highlights strong cash generation, though there is room for improvement in free cash flow conversion.

Income Statement

Pilot Corporation exhibits strong revenue growth with a 6.40% increase in total revenue from 2023 to 2024. The gross profit margin stands at 51.30%, indicating efficient cost management. The net profit margin is robust at 12.03%, reflecting strong profitability. However, EBIT margin decreased slightly to 14.11%, indicating a slight increase in operational costs. Overall, the company shows solid growth and profitability metrics.

Balance Sheet

The balance sheet reflects strong equity with an equity ratio of 79.15%, showcasing financial stability. The debt-to-equity ratio is low at 0.01, indicating minimal leverage risk. Return on Equity (ROE) is healthy at 10.86%, reflecting efficient use of equity capital. The company maintains a strong cash position, enhancing its financial resilience. Overall, the balance sheet presents a stable financial position with low leverage.

Cash Flow

The company reported a significant increase in operating cash flow to net income ratio at 1.50, showing strong cash generation capability. Free cash flow increased substantially by 29.89%, demonstrating efficient capital allocation. However, the free cash flow to net income ratio is relatively moderate at 0.76, suggesting room for improvement in converting profits into free cash flow. Overall, the cash flow statement highlights robust cash generation with potential for better cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	125.49B	126.17B	118.59B	112.85B	103.06B	87.10B
Gross Profit	66.57B	64.73B	61.88B	60.11B	54.19B	45.24B
EBITDA	24.71B	22.93B	25.10B	26.57B	24.29B	18.47B
Net Income	13.91B	15.18B	13.66B	15.77B	14.27B	9.93B
Balance Sheet
Total Assets	176.17B	176.70B	166.47B	156.54B	143.16B	123.57B
Cash, Cash Equivalents and Short-Term Investments	36.95B	39.98B	39.17B	46.13B	46.52B	38.31B
Total Debt	1.50B	855.00M	2.63B	4.46B	9.41B	14.48B
Total Liabilities	32.33B	35.12B	34.12B	38.55B	40.81B	35.70B
Stockholders Equity	142.95B	139.85B	130.41B	116.55B	101.05B	86.74B
Cash Flow
Free Cash Flow	0.00	11.54B	888.00M	9.24B	16.24B	10.08B
Operating Cash Flow	0.00	22.73B	10.18B	13.75B	19.82B	15.14B
Investing Cash Flow	0.00	-11.05B	-10.71B	-5.35B	-3.60B	-4.46B
Financing Cash Flow	0.00	-11.04B	-7.38B	-8.37B	-7.96B	-5.40B

Pilot Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4790.00
• 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:7846, the sentiment is Positive. The current price of 4790 is above the 20-day moving average (MA) of 4759.30, above the 50-day MA of 4717.40, and above the 200-day MA of 4321.65, indicating a bullish trend. The MACD of 17.24 indicates Positive momentum. The RSI at 54.71 is Neutral, neither overbought nor oversold. The STOCH value of 58.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7846.

Pilot Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7846	75 Outperform	¥178.72B	12.86	―	2.59%	-0.26%	3.35%
7976	74 Outperform	¥107.80B	15.00	―	2.07%	6.39%	-34.84%
7984	72 Outperform	¥421.55B	19.00	8.83%	2.24%	6.29%	8.74%
7975	70 Neutral	¥4.19B	10.43	―	2.03%	3.24%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7962	58 Neutral	¥24.12B	69.24	―	1.65%	-2.71%	―
7992	50 Neutral	¥3.02B	―	―	―	4.11%	33.06%

Pilot Corporation Corporate Events

Pilot Corporation Completes Treasury Share Acquisition

Pilot Corporation has completed the acquisition of its own treasury shares as per the resolution made by its Board of Directors. This strategic move involved acquiring over 1.35 million common shares at a total cost of approximately 6 billion yen, executed through market purchases on the Tokyo Stock Exchange. This acquisition is part of Pilot’s ongoing efforts to manage its capital structure and enhance shareholder value.

Pilot Corporation Reports Stable Financial Performance Amid Market Challenges

Pilot Corporation reported a slight decline in net sales and profits for the nine months ending September 30, 2025, compared to the previous year. Despite a challenging market environment, the company maintained stable operating profits and increased its equity ratio, indicating a strong financial position. The acquisition of treasury shares and the inclusion of a new subsidiary in India reflect strategic moves to strengthen its market presence and shareholder value.

Pilot Corporation Reports Progress on Treasury Share Acquisition

Pilot Corporation has announced the progress of its treasury share acquisition, as resolved by its Board of Directors. As of October 31, 2025, the company acquired 1,204,300 shares at a total acquisition price of 5,287,970,760 yen, with the purchase conducted on the Tokyo Stock Exchange. This move is part of a larger plan to acquire up to 1.6 million shares by December 23, 2025, potentially impacting the company’s stock value and shareholder equity.

Pilot Corporation Advances Treasury Share Acquisition Plan

Pilot Corporation announced the progress of its treasury share acquisition, having acquired 181,300 common shares at an aggregate price of 840,737,294 yen between September 1 and September 30, 2025. This move is part of a larger plan approved by the Board of Directors to acquire up to 1.6 million shares, aiming to enhance shareholder value and optimize capital structure.