PEGASUS CO. LTD (6262) AI Stock Analysis

PEGASUS CO. LTD

(TSE/TYO:6262)

Select Model

Rating:60Neutral

Price Target:JPY 602.00▲(5.06% Upside)

Action:reiterated

Date:10/31/26

The company's strong, low-leverage balance sheet and improving cash flow generation provide a solid foundation, which is the most significant positive factor. However, this is offset by weak profitability, declining revenues, and compressed margins. The stock's positive short-term technical momentum is a tailwind, but the negative P/E ratio underscores the earnings challenge. The high dividend yield is a notable feature but carries sustainability risk given low net income.

Positive Factors

Conservative leverageConservative leverage and steadily growing equity provide financial resilience for a cyclical machinery supplier. A moderate debt burden preserves flexibility to fund product development, support customers, and withstand weaker textile-industry investment without excessive refinancing pressure.

Negative Factors

Volatile revenue trendThe sharp change from earlier growth to contraction shows that demand remains sensitive to customers’ production and capital-expenditure cycles. Such volatility makes forward revenue planning less dependable and can limit operating leverage, investment visibility, and the consistency of future earnings.

PEGASUS CO. LTD (6262) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 12.23B
Dividend Yield: 6.11%
Average Volume (3M): 68.43K
Price to Earnings (P/E): -133.3
Beta (1Y): 1.24
Revenue Growth: -12.43%
EPS Growth: -128.95%
Country: Japan
Employees: 1,576
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

PEGASUS CO. LTD Business Overview & Revenue Model

Company Description

Operating internationally, Pegasus Sewing Machine Mfg. Co., Ltd. specializes in the production and distribution of industrial sewing equipment. Their diverse portfolio encompasses overedger, safety stitch, interlock, double chain stitch, and advanced...

How the Company Makes Money

PEGASUS generates revenue primarily by selling industrial sewing machines and related hardware to business customers (e.g., manufacturers and factories) through direct sales and/or distributor channels. A meaningful portion of earnings is typically s...

PEGASUS CO. LTD Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is a clear strength with low debt-to-equity (0.19) and growing equity, providing stability. Cash flow has improved, with positive free cash flow and healthy conversion. However, the income statement shows revenue decline and significant margin compression, with net margin at just 1.5%, weighing on the overall score.

Income Statement

48Neutral

Balance Sheet

75Positive

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	20.34B	21.66B	22.04B	17.54B	25.29B	20.50B
Gross Profit	6.64B	7.08B	7.11B	5.06B	8.18B	6.39B
EBITDA	1.38B	2.17B	2.89B	1.09B	3.62B	2.68B
Net Income	-108.87M	323.53M	964.91M	-72.80M	2.29B	1.57B
Balance Sheet
Total Assets	45.34B	44.96B	46.39B	42.95B	39.51B	35.43B
Cash, Cash Equivalents and Short-Term Investments	9.99B	10.52B	9.46B	9.03B	9.53B	9.77B
Total Debt	5.16B	6.21B	6.74B	8.01B	5.28B	5.22B
Total Liabilities	11.27B	11.15B	12.75B	12.35B	10.31B	10.06B
Stockholders Equity	32.81B	32.62B	32.48B	29.61B	28.30B	24.60B
Cash Flow
Free Cash Flow	0	2.15B	1.40B	-1.85B	232.93M	1.12B
Operating Cash Flow	0	2.63B	2.44B	765.57M	1.86B	1.88B
Investing Cash Flow	0	-310.56M	-1.64B	-3.30B	-1.88B	-432.10M
Financing Cash Flow	0	-2.00B	-1.52B	1.30B	-1.18B	-673.55M

PEGASUS CO. LTD Technical Analysis

Technical Analysis SentimentPositive

Last Price573.00

Price Trends

50DMA518.26Positive

100DMA517.02Positive

200DMA625.39Negative

Market Momentum

MACD1.21Negative

RSI68.67Neutral

STOCH38.69Neutral

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 573.00 is above the 20-day moving average (MA) of 519.55, above the 50-day MA of 518.26, and below the 200-day MA of 625.39, indicating a neutral trend. The MACD of 1.21 indicates Negative momentum. The RSI at 68.67 is Neutral, neither overbought nor oversold. The STOCH value of 38.69 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6262 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6151	69Neutral	JPY 29.59B	10.66	―	2.28%	2.42%	406.25%
JP:6440	69Neutral	JPY 20.39B	11.81	―	1.44%	-5.81%	―
JP:6482	67Neutral	JPY 21.95B	35.19	―	3.10%	-8.01%	-62.48%
JP:6203	65Neutral	JPY 24.82B	31.11	―	1.00%	-7.53%	-13.28%
JP:6262	60Neutral	JPY 14.22B	-133.25	―	6.11%	-12.43%	-128.95%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6217	39Underperform	JPY 4.05B	24.85	―	―	3.23%	―

* General Sector Average

Performance Comparison

JP:6262 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6262	PEGASUS CO. LTD	573.00	-208.29	-26.66%
JP:6151	Nitto Kohki Co., Ltd.	1581.00	-95.95	-5.72%
JP:6203	Howa Machinery, Ltd.	2000.00	589.62	41.81%
JP:6217	TSUDAKOMA Corp.	634.00	287.00	82.71%
JP:6440	Juki Corporation	696.00	259.95	59.61%
JP:6482	Yushin Precision Equipment Co., Ltd.	645.00	18.09	2.89%

PEGASUS CO. LTD Corporate Events

Pegasus Warns of Full-Year Loss but Boosts Dividend Amid Earnings Slump

Oct 30, 2026

Pegasus Co., Ltd. reported a sharp deterioration in performance for the six months ended September 30, 2026, with net sales down 13.4% year on year to ¥9,877 million and operating profit plunging 88.2% to ¥79 million. The company swung to a...

Pegasus Co. Posts Sharp Earnings Decline but Maintains Full-Year Outlook

Jul 31, 2026

Pegasus Co., Ltd. reported consolidated net sales of ¥4.85 billion for the three months ended June 30, 2026, a year-on-year decline of 21.3%, with operating profit plunging 89.2% to ¥59 million and ordinary profit dropping 77.9% to ¥10...

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.

Date of analysis: Oct 31, 2026

PEGASUS CO. LTD AI Stock Analysis