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PIOLAX, Inc. (5988) AI Stock Analysis
PIOLAX, Inc.
(TSE/TYO:5988)
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.
PIOLAX, Inc. (5988) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 36.87B
- Dividend Yield
- 6.00%
- Average Volume (3M)
- 98.98K
- Price to Earnings (P/E)
- 5677.8
- Beta (1Y)
- 0.89
- Revenue Growth
- <0.01%
- EPS Growth
- -103.48%
- Country
- Japan
- Employees
- 2,784
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Auto - Parts
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 domain,...
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 functiona...
PIOLAX, Inc. Financial Statement Overview
Summary
Financial results weakened materially: FY2026 swung to a small net loss, operating margins compressed to ~2.4%, and revenue declined modestly in FY2025–FY2026. The balance sheet remains reasonably solid (FY2026 debt-to-equity ~0.38), but leverage rose sharply versus prior years. Cash flow is the key concern as operating cash flow dropped (~¥3.0B) and free cash flow turned sharply negative (~-¥6.6B).
Income Statement
46NeutralBalance Sheet
72PositiveCash Flow
38Negative| 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 | -6.56B | 3.57B | 1.02B | 1.82B | 3.89B |
| Operating Cash Flow | 0 | 3.00B | 8.12B | 8.37B | 6.07B | 6.44B |
| Investing Cash Flow | 0 | -7.56B | 3.34B | -8.57B | -5.00B | -3.86B |
| Financing Cash Flow | 0 | -3.14B | -6.47B | -4.70B | -2.44B | -4.69B |
PIOLAX, Inc. Technical Analysis
Price Trends
Market Momentum
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 1533.00 is below the 20-day moving average (MA) of 1595.35, below the 50-day MA of 1637.20, and below the 200-day MA of 1612.63, indicating a bearish trend. The MACD of -29.95 indicates Positive momentum. The RSI at 32.50 is Neutral, neither overbought nor oversold. The STOCH value of 9.62 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
Overall Rating
JP:811783Outperform
JP:516176Outperform
JP:728276Outperform
JP:798874Outperform
JP:728366Neutral- JP:598850Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:8117 | 83Outperform | JPY 121.08B | 11.37 | ― | 3.28% | 14.11% | 14.28% |
| JP:5161 | 76Outperform | JPY 136.52B | 12.06 | ― | 4.93% | 3.24% | 236.26% |
| JP:7282 | 76Outperform | JPY 576.56B | 9.70 | 10.53% | 17.63% | 12.94% | 40.34% |
| JP:7988 | 74Outperform | JPY 424.75B | 13.99 | ― | 5.08% | 4.44% | -29.27% |
| JP:7283 | 66Neutral | JPY 128.92B | 8.68 | ― | 4.18% | 1.54% | 8.81% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| JP:5988 | 50Neutral | JPY 38.30B | 5677.78 | ― | 6.00% | <0.01% | -103.48% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:5988 | PIOLAX, Inc. | 1533.00 | -94.91 | -5.83% | |
| JP:7282 | Toyoda Gosei Co | 981.40 | 292.37 | 42.43% | |
| JP:5161 | Nishikawa Rubber Co., Ltd. | 3730.00 | 1023.35 | 37.81% | |
| JP:7283 | Aisan Industry Co., Ltd. | 2034.00 | 21.95 | 1.09% | |
| JP:7988 | Nifco Inc. | 2479.50 | 299.23 | 13.72% | |
| JP:8117 | Central Automotive Products Ltd. | 2074.00 | 337.09 | 19.41% |
PIOLAX, Inc. Corporate Events
PIOLAX Advances Share Buyback Program, Repurchasing 473,800 Shares by July-End
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 acquisitio...
PIOLAX Posts Higher Sales but Softer Profits, Keeps Dividend and Earnings Outlook Intact
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 ¥125...
PIOLAX Updates Progress on 2026 Share Buyback Program
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 the...
PIOLAX Details Progress of Ongoing Share Buyback Program
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 the...
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.
Date of analysis: Aug 17, 2026