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PIOLAX, Inc.
(5988)
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Rating:50Neutral
Price Target:
¥1,724.00
▼(-0.46% Downside)
Action:Reiterated
Date:08/17/26
The score is held down primarily by weakening financial performance—FY2026 margin compression, a swing to net loss, and sharply negative free cash flow—despite a still-reasonable balance sheet. Valuation is also a headwind given the extremely high P/E, even with a strong dividend yield. Technicals are a relative positive, showing a moderately constructive trend and momentum, but they are not strong enough to outweigh the fundamental and valuation risks.
Positive Factors
Moderate Leverage
A reasonably solid balance sheet gives PIOLAX some capacity to absorb cyclical automotive demand and fund operations. Moderate leverage remains a financial buffer, although the recent increase means this advantage should be monitored.
Negative Factors
Severe Profitability Compression
The shift from recurring profits to a net loss, alongside sharply lower operating margins, weakens internal funding capacity and raises execution risk. Sustained pressure on pricing, costs, or customer volumes could limit earnings recovery over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Moderate Leverage
A reasonably solid balance sheet gives PIOLAX some capacity to absorb cyclical automotive demand and fund operations. Moderate leverage remains a financial buffer, although the recent increase means this advantage should be monitored.
Read all positive factors
PIOLAX, Inc. (5988) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥41.58B
Dividend Yield5.49%
Average Volume (3M)82.51K
Price to Earnings (P/E)6211.1
Beta (1Y)0.86
Revenue Growth<0.01%
EPS Growth-103.48%
CountryJP
Employees2,784
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.27
Shares Outstanding37,054,100
10 Day Avg. Volume82,970
30 Day Avg. Volume82,510
Financial Highlights & Ratios
PEG Ratio18.98
Price to Book (P/B)0.62
Price to Sales (P/S)0.65
P/FCF Ratio-6.14
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)49.4
Revenue Forecast (FY)¥63.00B
PIOLAX, Inc. Business Overview & Revenue Model
Company Description
PIOLAX, Inc. is a manufacturing enterprise dedicated to the engineering, production, and sale of a wide array of specialized parts and products for key sectors including automotive, medical, consumer goods, and security. Within the automotive doma...
How the Company Makes Money
PIOLAX makes money mainly by manufacturing and selling precision components to corporate customers, with the automotive sector as its core end market. Revenue is generated through (1) sales of automotive components—such as springs and other functi...
PIOLAX, Inc. Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
72
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.71B | 62.05B | 63.35B | 64.55B | 58.42B | 55.14B |
| Gross Profit | 13.86B | 13.73B | 13.53B | 15.51B | 14.12B | 14.63B |
| EBITDA | 5.82B | 5.91B | 6.74B | 8.63B | 7.54B | 8.51B |
| Net Income | -21.00M | -20.00M | 1.79B | 4.01B | 3.38B | 4.22B |
Balance Sheet | ||||||
| Total Assets | 100.18B | 101.42B | 105.83B | 121.99B | 116.02B | 109.67B |
| Cash, Cash Equivalents and Short-Term Investments | 26.31B | 26.34B | 35.68B | 37.27B | 38.84B | 38.04B |
| Total Debt | 25.08B | 24.57B | 614.00M | 291.00M | 277.00M | 404.00M |
| Total Liabilities | 34.81B | 35.27B | 14.04B | 14.04B | 11.77B | 11.34B |
| Stockholders Equity | 64.08B | 64.86B | 90.45B | 106.30B | 102.67B | 96.89B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -6.56B | 3.57B | 1.02B | 1.82B | 3.89B |
| Operating Cash Flow | 0.00 | 3.00B | 8.12B | 8.37B | 6.07B | 6.44B |
| Investing Cash Flow | 0.00 | -7.56B | 3.34B | -8.57B | -5.00B | -3.86B |
| Financing Cash Flow | 0.00 | -3.14B | -6.47B | -4.70B | -2.44B | -4.69B |
PIOLAX, Inc. Technical Analysis
Negative
1732.00
Price Trends
1690.72
Negative
1630.78
Positive
1647.56
Positive
Market Momentum
-6.40
Positive
39.76
Neutral
6.76
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5988, the sentiment is Negative. The current price of 1732 is above the 20-day moving average (MA) of 1706.80, above the 50-day MA of 1690.72, and above the 200-day MA of 1647.56, indicating a neutral trend. The MACD of -6.40 indicates Positive momentum. The RSI at 39.76 is Neutral, neither overbought nor oversold. The STOCH value of 6.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5988.
PIOLAX, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | ¥122.30B | 11.46 | ― | 2.65% | 14.11% | 14.28% | |
79 Outperform | ¥459.66B | 13.83 | ― | 2.25% | 1.58% | -25.77% | |
78 Outperform | ¥591.36B | 9.50 | 11.56% | 2.68% | 12.73% | 81.53% | |
76 Outperform | ¥135.44B | 8.69 | ― | 3.78% | 0.25% | 30.31% | |
67 Neutral | ¥125.91B | 11.22 | ― | 5.27% | 3.24% | 236.26% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | ¥41.58B | 6,211.11 | ― | 5.49% | <0.01% | -103.48% |
* Consumer Cyclical Sector Average
JP:5988
PIOLAX, Inc.
1,677.00
-75.54
-4.31%
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PIOLAX, Inc. Corporate Events
PIOLAX Advances Share Buyback Program, Repurchasing 473,800 Shares by July-End
Aug 5, 2026
PIOLAX, Inc. has continued its ongoing share buyback program, repurchasing 88,300 common shares for JPY 148,082,600 on the Tokyo Stock Exchange during July 2026. The purchases are conducted under a board-approved mandate that allows market acquisi...
PIOLAX Posts Higher Sales but Softer Profits, Keeps Dividend and Earnings Outlook Intact
Aug 5, 2026
PIOLAX reported consolidated net sales of ¥15.76 billion for the three months ended June 30, 2026, up 4.4% year on year, while operating profit fell 30.5% to ¥266 million and profit attributable to owners of parent slipped 2.0% to ¥...
PIOLAX Updates Progress on 2026 Share Buyback Program
Jul 3, 2026
PIOLAX, Inc. has reported the latest status of its ongoing share repurchase program authorized by its board in February 2026 under provisions of the Companies Act. Between June 1 and June 30, 2026, the company bought back 63,500 common shares on t...
PIOLAX Details Progress of Ongoing Share Buyback Program
Jun 4, 2026
PIOLAX, Inc. has reported the latest progress of its share buyback program authorized by its board in February 2026, under which it is allowed to repurchase up to 800,000 shares for as much as JPY 1 billion by year-end through market purchases on ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.