Puequ CO. LTD. (9264) AI Stock Analysis

• Market Cap: ¥7.62B
• Dividend Yield: 3.98%
• Average Volume (3M): 20.91K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.98
• 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: -32.41
• 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

Improving revenue and profitability

The company shows a multi-year recovery: consistent revenue growth and a marked net margin rebound indicate stronger core operations and pricing or cost control gains. Sustained improvement in top-line and margins supports durable earnings capacity and reinvestment over the next 2–6 months if trends continue.

Improved return on equity

ROE rising to ~13.5% signals better capital allocation and profitability per shareholder equity. Higher ROE tends to persist if driven by structural improvements (better margins, asset utilization), enhancing shareholder returns and supporting internal funding for growth over the medium term.

Operating cash flow recovery

A sharp improvement in operating cash flow demonstrates better conversion of profits into cash from core operations. If sustained, stronger operating cash flow reduces reliance on external financing, improves liquidity to service debt or fund capex, and strengthens balance-sheet flexibility over coming quarters.

Negative Factors

Persistent negative free cash flow

Three straight years of negative free cash flow indicate earnings have not translated into surplus cash after investments. This constrains the firm's ability to self-fund growth, pay down debt, or maintain distributions without recurring external financing, raising medium-term funding risk.

Rising leverage (debt-to-equity ~2.06)

A materially higher debt-to-equity ratio reduces financial flexibility and increases interest and refinancing exposure. With elevated leverage, adverse operating shocks or slower cash conversion could quickly strain liquidity and raise default or covenant risks over the medium term.

Modest margins and earnings volatility

Only mid-single-digit net margins and past negative income year indicate limited earnings cushion. This modest profitability and volatility weaken the firm's ability to absorb downturns, sustain investment, or accelerate deleveraging, making performance more sensitive to market or cost pressures.

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	1.22B	746.14M	573.65M	429.92M	435.16M
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	5.80B	4.66B	4.53B	4.79B
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	-242.73M	-247.02M	-62.58M	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: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 above the 20-day moving average (MA) of 1704.80, below the 50-day MA of 1740.46, and below the 200-day MA of 1706.29, indicating a bearish trend. The MACD of -18.84 indicates Positive momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 18.88 is Positive, 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
6336	78 Outperform	¥7.17B	6.67	―	2.63%	0.59%	53.87%
6391	76 Outperform	¥7.65B	3.84	―	1.19%	-14.09%	-36.08%
6346	69 Neutral	¥7.96B	19.51	―	2.42%	3.68%	-14.90%
6408	67 Neutral	¥6.82B	3.03	―	1.37%	-3.05%	―
9264	64 Neutral	¥7.62B	13.83	―	3.98%	17.50%	-37.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6343	56 Neutral	¥7.56B	8.08	―	0.30%	4.45%	19.84%