Puequ CO. LTD. (9264) AI Stock Analysis

• Market Cap: ¥8.11B
• Dividend Yield: 3.98%
• Average Volume (3M): 20.91K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 1.00
• Revenue Growth: 17.50%
• EPS Growth: -37.19%
• Country: JP
• Employees: 203
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 30.61
• Shares Outstanding: 4,700,826
• 10 Day Avg. Volume: 20,210
• 30 Day Avg. Volume: 20,906
• PEG Ratio: 0.07
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -31.73
• 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: 64 Neutral
• Price Target: ¥1,758.00 ▲(3.11% Upside)
• Action: Reiterated Date: 01/04/26
• Date: Action: Reiterated 01/04/26

The score is primarily held back by weaker financial quality—negative free cash flow over multiple years and rising leverage—despite improved profitability. Offsetting this, technicals are constructive with a clear uptrend, and valuation is supported by a moderate P/E and solid dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Operational Efficiency

High EBIT and EBITDA margins demonstrate effective cost management and operational efficiency, which can sustain profitability.

Profitability Margins

Stable gross profit margins indicate strong cost control and pricing power, contributing to consistent profitability.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting long-term financial stability and growth.

Cash Flow Concerns

Negative free cash flow can constrain the company's ability to invest in growth opportunities and manage financial obligations.

Net Profit Margin Volatility

Fluctuating net profit margins suggest potential instability in earnings, which could affect investor confidence and valuation.

Puequ CO. LTD. Business Overview & Revenue Model

Company Description

Puequ CO.,LTD. manufactures and sells pumps, blowers, air conditioners, and factory equipment in Japan. The company offers pressure water tank type pressurized water supply devices, plate and shell heat exchangers, stainless steel submersible agitators, ozone deodorization/cleaning/sterilization systems, integrated sump units, landscape-friendly sea wall, and sea water chiller/titanium heat exchanger, as well as products handled by water treatment equipment, such as pumps. It also provides fire and disaster prevention equipment, water tanks, elevated water tanks, air conditioning equipment, combined treatment tanks, boilers, incinerators, cooling towers, compressors, transportation equipment, valve fittings, grease traps, oil and water separators, underwater agitator, housing equipment related products, wastewater treatment equipment, ozone generators, and nitrogen and oxygen generators. In addition, the company offers equipment repair, maintenance and inspection, design, and construction services, as well as sells disaster prevention and industrial equipment. Puequ CO.,LTD. was incorporated in 1989 and is based in Fukuyama, Japan.

How the Company Makes Money

Puequ CO. LTD. generates revenue primarily through the sale of its industrial machinery and equipment to businesses across different sectors. The company's revenue streams include direct sales of its products, as well as after-sales services such as maintenance and support. Additionally, Puequ CO. LTD. may engage in strategic partnerships with other firms to expand its market reach and enhance its product offerings, which can also contribute to its earnings.

Puequ CO. LTD. Financial Statement Overview

Summary

Operating performance improved in 2025 with consistent revenue growth and a meaningful profitability rebound (net margin ~5.7% vs ~2.3% in 2024). However, persistently negative free cash flow across 2023–2025 and higher leverage (debt-to-equity ~2.06) materially raise financial risk and weaken earnings quality.

Income Statement

Revenue has grown consistently over the last three annual reports, accelerating to ~4.1% growth in 2025 (annual), and profitability has improved meaningfully versus 2024 (net margin ~5.7% vs ~2.3%) with stronger operating margins. Strengths include rising gross margin (to ~26.3% in 2025) and a clear rebound from the 2022 loss. Weaknesses include only mid-single-digit net profitability and some historical volatility (notably 2022 negative net income), which reduces confidence in through-cycle earnings power.

Balance Sheet

The balance sheet shows increased leverage: debt-to-equity rose to ~2.06 in 2025 from ~1.40 in 2024, indicating heavier reliance on debt financing. Return on equity improved to ~13.5% in 2025, which is a positive signal for capital efficiency, but the higher debt load increases financial risk and reduces flexibility if operating conditions soften.

Cash Flow

Cash generation is the key weak spot. While operating cash flow improved sharply in 2025 (annual) versus 2024, free cash flow remained negative in each of the last three annual reports (2023–2025). Free cash flow also did not cover net income in 2025 (negative free cash flow vs positive earnings), suggesting profits are not consistently translating into cash after investment needs—an important risk for funding growth and servicing the rising debt load.

Breakdown	Aug 2025	Aug 2024	Aug 2023	Aug 2022	Aug 2021
Income Statement
Total Revenue	10.11B	8.37B	7.05B	5.81B	6.26B
Gross Profit	2.66B	1.99B	1.58B	1.35B	1.28B
EBITDA	1.32B	562.36M	606.61M	276.07M	508.84M
Net Income	573.54M	195.76M	265.38M	-23.91M	193.27M
Balance Sheet
Total Assets	15.09B	11.35B	9.78B	8.14B	8.54B
Cash, Cash Equivalents and Short-Term Investments	4.34B	2.07B	2.70B	1.65B	2.11B
Total Debt	8.78B	5.77B	4.64B	4.49B	4.76B
Total Liabilities	10.83B	7.24B	5.81B	5.47B	5.74B
Stockholders Equity	4.26B	4.11B	3.96B	2.68B	2.80B
Cash Flow
Free Cash Flow	-247.95M	-263.59M	-76.68M	32.44M	422.32M
Operating Cash Flow	1.06B	33.37M	251.90M	314.38M	576.21M
Investing Cash Flow	-1.08B	-1.25B	-275.06M	-260.25M	-429.81M
Financing Cash Flow	2.42B	574.09M	1.13B	-426.62M	-336.60M

Puequ CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1705.00
• 50DMA: Negative
• 100DMA: Negative
• 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:9264, the sentiment is Negative. The current price of 1705 is below the 20-day moving average (MA) of 1749.00, below the 50-day MA of 1765.36, and above the 200-day MA of 1684.08, indicating a neutral trend. The MACD of -5.80 indicates Positive momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 44.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:9264.

Puequ CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6402	79 Outperform	¥10.80B	9.91	―	2.15%	-0.94%	6.93%
5367	73 Outperform	¥9.83B	17.22	―	3.42%	3.23%	-9.88%
6346	69 Neutral	¥8.21B	14.35	―	2.42%	3.68%	-14.90%
5903	69 Neutral	¥6.99B	14.81	―	3.51%	4.29%	3.00%
9264	64 Neutral	¥8.11B	14.01	―	3.98%	17.50%	-37.19%
9930	64 Neutral	¥6.62B	18.83	―	2.29%	-5.85%	-17.41%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%