Pola Orbis Holdings (4927) AI Stock Analysis

• Market Cap: ¥284.28B
• Dividend Yield: 3.82%
• Average Volume (3M): 514.65K
• Price to Earnings (P/E): 30.6
• Beta (1Y): 0.29
• Revenue Growth: -1.70%
• EPS Growth: -3.93%
• Country: JP
• Employees: 4,021
• Sector: Consumer Defensive
• Sector Strength: 81
• Industry: Household & Personal Products
• EPS (TTM): 41.97
• Shares Outstanding: 229,136,150
• 10 Day Avg. Volume: 388,720
• 30 Day Avg. Volume: 514,653
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,195.28
• Price Target Upside: -6.98% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

Pola Orbis Holdings has a robust financial position with strong gross margins and a solid balance sheet, but faces challenges in revenue growth and profitability. Technical indicators show moderate strength with some upward momentum, but longer-term trends remain a concern. The stock's high P/E ratio suggests it may be overvalued, though an attractive dividend yield offers some compensation. Overall, the stock is stable but requires strategic focus on enhancing profitability and growth.

Pola Orbis Holdings Business Overview & Revenue Model

Company Description

Pola Orbis Holdings Inc. is a leading Japanese company, primarily engaged in the beauty and cosmetics industry. The company operates multiple brands, including POLA, ORBIS, Jurlique, and H2O Plus, offering a wide range of skincare, cosmetics, and personal care products. Pola Orbis Holdings focuses on high-quality, innovative products that cater to a diverse customer base, with a strong emphasis on research and development to maintain its competitive edge in the ever-evolving beauty market.

How the Company Makes Money

Pola Orbis Holdings generates revenue through the sale of its beauty and personal care products across several brands. The company's primary revenue streams include domestic and international retail sales, e-commerce, and direct sales through its extensive network of beauty consultants. Pola Orbis Holdings leverages its strong brand portfolio to target various segments of the beauty market, from luxury skincare to everyday cosmetics. Additionally, the company invests heavily in research and development to innovate and create new products, which helps drive sales growth. Strategic partnerships and collaborations with other companies in the beauty and fashion industries also contribute to its revenue, expanding its market reach and enhancing brand visibility.

Pola Orbis Holdings Financial Statement Overview

Summary

Pola Orbis Holdings shows a solid financial foundation with strong gross margins and a robust balance sheet characterized by low leverage and high equity. However, challenges include declining net profit margins and negative revenue growth. Cash flow improvements are notable, but managing capital expenditures and financing strategies is crucial for sustained financial health.

Income Statement

The income statement shows a mixed performance. Gross profit margin remains strong at approximately 81.3% for 2024, indicating effective cost control and pricing strategy. However, the net profit margin for 2024 is relatively low at around 5.5%, down from 5.6% in 2023, suggesting potential challenges in converting revenue into profit. Revenue growth is negative at -1.7% in 2024, compared to a decline of -1.1% in 2023, reflecting a potential slowdown in sales growth. EBIT and EBITDA margins have also declined slightly, indicating a decrease in operational efficiency.

Balance Sheet

The balance sheet remains robust with a low debt-to-equity ratio of approximately 0.01, highlighting minimal leverage and financial risk. The equity ratio is high at about 82.3%, showcasing a strong capital base. Return on equity for 2024 is modest at 5.6%, reflecting a need for improved profitability. Overall, the company's financial position is stable with ample cash reserves, although profitability could be enhanced.

Cash Flow

Cash flow analysis indicates improvement in free cash flow, rising significantly in 2024 from a deficit in 2023. The operating cash flow to net income ratio is strong at 2.82, suggesting effective cash generation relative to reported profits. The free cash flow to net income ratio is favorable at 1.94, indicating strong cash conversion. However, fluctuations in capital expenditures and financing activities highlight potential areas of concern for long-term cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
170.36B	173.30B	166.31B	178.64B	176.31B
	Gross Profit
138.51B	135.77B	135.27B	149.92B	146.33B
	EBIT
13.81B	16.08B	12.58B	16.89B	13.75B
	EBITDA
22.17B	23.18B	21.27B	25.09B	16.51B
	Net Income Common Stockholders
9.29B	9.66B	11.45B	11.73B	4.63B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
64.08B	65.14B	81.31B	92.57B	85.10B
	Total Assets
200.32B	201.21B	205.94B	208.04B	203.74B
	Total Debt
2.12B	1.69B	1.88B	2.28B	2.44B
	Net Debt
-45.19B	-45.51B	-61.44B	-70.15B	-57.08B
	Total Liabilities
35.41B	32.81B	34.48B	34.77B	33.89B
	Stockholders Equity
164.89B	168.05B	171.17B	173.05B	169.71B
Cash Flow		Free Cash Flow
18.01B	-1.81B	4.15B	16.63B	15.94B
	Operating Cash Flow
26.18B	14.42B	15.55B	23.83B	23.39B
	Investing Cash Flow
-12.10B	-18.73B	-12.37B	-2.17B	-3.34B
	Financing Cash Flow
-13.38B	-12.38B	-12.67B	-9.10B	-27.13B

Pola Orbis Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1285.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4927, the sentiment is Negative. The current price of 1285 is above the 20-day moving average (MA) of 1279.35, above the 50-day MA of 1261.58, and below the 200-day MA of 1367.44, indicating a neutral trend. The MACD of 6.43 indicates Negative momentum. The RSI at 50.37 is Neutral, neither overbought nor oversold. The STOCH value of 42.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4927.

Pola Orbis Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4912	74 Outperform	¥477.98B	22.63	7.22%	1.73%	2.53%	48.92%
4923	73 Outperform	¥42.20B	32.20		1.39%	2.52%	-7.44%
4919	72 Outperform	$87.91B	17.54	10.39%	2.07%	7.44%	25.31%
4927	67 Neutral	¥284.28B	30.62	5.42%	3.82%	-1.70%	-3.93%
Sector *	64 Neutral	$8.89B	14.71	5.02%	174.26%	3.57%	3.84%
4911	55 Neutral	¥932.20B	496.62		1.71%	1.80%	-149.74%

Pola Orbis Holdings Corporate Events

Pola Orbis Holdings Reports Decline in 2024 Performance, Eyes Modest Growth in 2025

Pola Orbis Holdings reported a decrease in their consolidated performance for the fiscal year ended December 31, 2024, with a decline in net sales, operating income, and profit attributable to owners of the parent compared to the previous year. Despite these declines, the company maintained its dividend per share, reflecting a stable return to shareholders. The company also announced a new inclusion in its subsidiaries, POLA ORBIS (Shanghai) Enterprise Management CO., LTD., indicating potential market expansion, particularly in China. The financial outlook for 2025 projects a modest increase in net sales and operating income, though a decrease in ordinary income and profit attributable to owners is anticipated.