PEGASUS CO. LTD (6262) AI Stock Analysis

• Market Cap: ¥13.70B
• Dividend Yield: 2.35%
• Average Volume (3M): 165.00K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.89
• Revenue Growth: 10.66%
• EPS Growth: 229.25%
• Country: JP
• Employees: 1,498
• Sector: Industrials
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): -1.01
• Shares Outstanding: 24,828,600
• 10 Day Avg. Volume: 373,140
• 30 Day Avg. Volume: 165,003
• PEG Ratio: 0.03
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

PEGASUS CO. LTD's stock presents a balanced investment opportunity, with strengths in valuation and a solid balance sheet. However, challenges in cash flow and profitability, along with mixed technical signals, temper the overall outlook. The stock is attractive from a valuation perspective but requires attention to operational improvements for sustainable growth.

PEGASUS CO. LTD Business Overview & Revenue Model

Company Description

PEGASUS CO. LTD (6262) is a Japanese company operating primarily in the industrial manufacturing sector. The company specializes in the production and distribution of sewing machines and related equipment, catering mainly to the apparel and garment industry. With a focus on innovation and quality, PEGASUS CO. LTD provides a wide range of products designed to enhance productivity and efficiency in garment production processes.

How the Company Makes Money

PEGASUS CO. LTD generates revenue through the sale of its sewing machines and related equipment. The company's key revenue streams include direct sales to garment manufacturers, sales through distributors, and after-sales services such as maintenance and repairs. Additionally, PEGASUS CO. LTD may engage in strategic partnerships with textile and apparel industry players to enhance its market reach and product offerings. The company’s earnings are influenced by factors such as technological advancements, demand in the garment industry, and global economic conditions affecting manufacturing activities.

PEGASUS CO. LTD Financial Statement Overview

Summary

PEGASUS CO. LTD shows positive revenue growth and a strong balance sheet with low leverage. However, the company faces challenges in profitability margins and cash flow generation, indicating areas for improvement.

Income Statement

PEGASUS CO. LTD's TTM revenue showed a growth compared to the previous year, indicating a positive trend. The gross profit margin is robust at approximately 33%, reflecting effective cost management. However, the net profit margin for the TTM is around 5%, which indicates room for improvement in profitability. There was a significant increase in EBIT margin from the previous period, suggesting operational efficiency improvements.

Balance Sheet

The company maintains a strong equity base with an equity ratio of around 70.4%, indicating a solid financial structure. The debt-to-equity ratio is relatively low at approximately 0.20, suggesting prudent leverage management. Return on equity for the TTM is modest but positive, reflecting stable returns to shareholders.

Cash Flow

The cash flow metrics reveal some challenges, particularly with a negative free cash flow in recent periods, indicating potential liquidity constraints. The lack of positive operating cash flow in the TTM could hinder short-term financial flexibility. However, the company has previously demonstrated the ability to generate operating cash flow.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
20.56B	17.54B	25.29B	20.50B	12.42B	14.97B
	Gross Profit
6.76B	5.33B	8.48B	6.64B	4.47B	5.18B
	EBIT
1.21B	38.55M	2.66B	1.85B	516.95M	499.58M
	EBITDA
1.63B	1.75B	4.04B	2.84B	1.67B	1.31B
	Net Income Common Stockholders
1.05B	-72.80M	2.29B	1.57B	707.17M	-206.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.03B	9.03B	9.53B	9.77B	8.66B	6.04B
	Total Assets
42.95B	42.95B	39.51B	35.13B	29.85B	29.72B
	Total Debt
8.01B	8.01B	5.28B	5.22B	4.89B	4.82B
	Net Debt
-621.92M	-1.02B	-4.25B	-4.55B	-3.77B	-1.18B
	Total Liabilities
12.35B	12.35B	10.31B	9.77B	7.78B	7.98B
	Stockholders Equity
29.61B	29.61B	28.30B	24.60B	21.38B	21.07B
Cash Flow		Free Cash Flow
0.00	-1.85B	213.32M	1.12B	1.79B	-980.43M
	Operating Cash Flow
0.00	765.57M	1.86B	1.88B	2.26B	602.81M
	Investing Cash Flow
0.00	-3.30B	-1.88B	-432.10M	643.39M	-1.63B
	Financing Cash Flow
0.00	1.30B	-1.18B	-673.55M	-145.99M	576.89M

PEGASUS CO. LTD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 536.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6262, the sentiment is Positive. The current price of 536 is above the 20-day moving average (MA) of 486.20, above the 50-day MA of 491.33, and above the 200-day MA of 475.57, indicating a bullish trend. The MACD of 17.07 indicates Negative momentum. The RSI at 62.43 is Neutral, neither overbought nor oversold. The STOCH value of 68.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6262.

PEGASUS CO. LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6339	79 Outperform	$45.61B	16.30	2.26%	5.74%	22.19%	-22.08%
6284	78 Outperform	¥74.51B	10.37		3.02%	17.01%	16.10%
6406	70 Outperform	¥440.30B	31.19		2.84%	7.54%	-30.13%
Sector *	64 Neutral	$4.39B	12.06	5.17%	249.63%	4.03%	-11.04%
6262	64 Neutral	¥13.70B	14.19		2.35%	10.66%	229.25%
6440	54 Neutral	¥10.43B	―		3.42%	-1.17%	63.91%