Punch Industry Co., Ltd. (6165) AI Stock Analysis

• Market Cap: ¥11.16B
• Dividend Yield: 4.65%
• Average Volume (3M): 39.44K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.76
• Revenue Growth: 7.19%
• EPS Growth: N/A
• Country: JP
• Employees: 3,575
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 5.28
• Shares Outstanding: 27,622,400
• 10 Day Avg. Volume: 34,070
• 30 Day Avg. Volume: 39,440
• PEG Ratio: -0.05
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 8.37
• 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

• Rating: 67 Neutral
• Price Target: ¥444.00 ▲(8.82% Upside)

Punch Industry Co., Ltd. demonstrates strong financial health with solid revenue growth and improved profitability, contributing significantly to the overall score. The valuation is reasonable with an attractive dividend yield, supporting the stock's appeal. However, technical indicators suggest a lack of strong upward momentum, which tempers the overall score.

Punch Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Punch Industry Co., Ltd. (6165) is a leading manufacturer specializing in precision metal components and parts. The company operates primarily in the automotive and electronics sectors, delivering high-quality products that include stamped and machined components, as well as assembly services. With a focus on innovation and technological advancement, Punch Industry aims to meet the diverse needs of its customers by providing customized solutions and maintaining strict quality control standards.

How the Company Makes Money

Punch Industry Co., Ltd. generates revenue through the sale of its precision metal components to various industries, primarily the automotive and electronics sectors. The company operates on a business-to-business (B2B) model, securing contracts with manufacturers who require high-quality, reliable components for their products. Key revenue streams include direct sales of stamped and machined parts, as well as assembly services which add value by providing complete solutions to clients. Additionally, Punch Industry may engage in long-term partnerships with automotive and electronics manufacturers, allowing for steady demand and recurring revenue. The company's emphasis on research and development helps in maintaining its competitive edge, attracting more clients and expanding its market presence.

Punch Industry Co., Ltd. Financial Statement Overview

Summary

Punch Industry Co., Ltd. demonstrates strong financial health with consistent revenue growth and improved profitability margins. The balance sheet shows financial stability with low leverage, and cash flow metrics indicate strong liquidity and cash generation capabilities. However, there is room for improving operational efficiency.

Income Statement

Punch Industry Co., Ltd. has demonstrated solid revenue growth with a Revenue Growth Rate of 6.46% from 2024 to 2025. The Gross Profit Margin improved to 26.49%, indicating effective cost management. Furthermore, the Net Profit Margin increased significantly to 2.13% in 2025 from a negative margin in 2024, highlighting a strong turnaround. However, the EBIT Margin of 4.13% and EBITDA Margin of 6.75%, while improved, still suggest room for enhancing operational efficiency.

Balance Sheet

The company maintains a healthy Equity Ratio of 66.77%, indicating a strong capital structure with a high proportion of equity financing. The Debt-to-Equity Ratio stands at 0.14, reflecting low leverage and reduced financial risk. Return on Equity (ROE) improved to 3.94% in 2025, suggesting better utilization of shareholder funds, but still indicates potential for higher returns. The overall balance sheet showcases financial stability with strong equity backing.

Cash Flow

Punch Industry Co., Ltd. reports a robust Free Cash Flow Growth Rate of 244.63%, demonstrating substantial cash flow generation. The Operating Cash Flow to Net Income Ratio is 2.62, indicating strong cash generation relative to profits. Additionally, the Free Cash Flow to Net Income Ratio of 1.44 signifies that the company generates sufficient free cash flow relative to its net income, providing flexibility for investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.33B	40.82B	38.34B	42.80B	39.36B	32.46B
Gross Profit	10.93B	10.81B	10.08B	11.63B	11.44B	9.09B
EBITDA	2.84B	2.76B	1.16B	3.29B	3.87B	2.09B
Net Income	869.00M	868.00M	-577.00M	1.39B	2.04B	477.71M
Balance Sheet
Total Assets	30.75B	32.97B	29.65B	30.46B	28.77B	24.70B
Cash, Cash Equivalents and Short-Term Investments	5.30B	6.50B	6.03B	5.21B	4.82B	4.09B
Total Debt	2.75B	3.10B	3.55B	2.72B	3.39B	4.58B
Total Liabilities	10.04B	10.93B	10.90B	11.40B	12.47B	12.27B
Stockholders Equity	20.68B	22.01B	18.72B	19.03B	16.29B	12.43B
Cash Flow
Free Cash Flow	0.00	1.25B	363.00M	1.27B	1.87B	2.36B
Operating Cash Flow	0.00	2.27B	1.28B	2.56B	2.94B	2.94B
Investing Cash Flow	0.00	-2.42B	-680.00M	-1.55B	-1.10B	-670.20M
Financing Cash Flow	0.00	181.00M	-2.00M	-756.34M	-1.60B	-1.68B

Punch Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 408.00
• 50DMA: Negative
• 100DMA: Positive
• 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:6165, the sentiment is Negative. The current price of 408 is below the 20-day moving average (MA) of 411.90, below the 50-day MA of 425.51, and above the 200-day MA of 391.10, indicating a neutral trend. The MACD of -4.07 indicates Positive momentum. The RSI at 39.94 is Neutral, neither overbought nor oversold. The STOCH value of 23.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6165.

Punch Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5967	―	¥14.52B	14.89	―	1.65%	-2.69%	6.29%
6157	―	¥20.47B	16.48	―	3.92%	0.97%	-10.48%
6165	―	¥11.16B	12.36	―	4.65%	7.19%	―
6380	―	¥3.23B	51.66	―	1.28%	3.83%	-60.31%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6156	―	¥7.29B	-40.36	―	5.60%	-0.67%	-283.37%
7726	―	¥5.26B	-26.48	―	2.14%	-7.53%	-136.56%