PEGASUS CO. LTD (6262) AI Stock Analysis

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PEGASUS CO. LTD

(TSE/TYO:6262)

Select Model

Rating:68Neutral

Price Target:JPY 949.00▲(8.96% Upside)

Action:reiterated

Date:11/03/26

PEGASUS CO. LTD achieves a moderate overall score, anchored by exceptional cash flow generation and a conservatively managed balance sheet that mitigate risks from recent profitability weakness. The stock benefits from strong bullish technical momentum, though investors should be cautious of current overbought technical signals. While the 5.2% dividend yield provides attractive income potential, the negative P/E ratio underscores ongoing structural earnings risks.

Positive Factors

Conservative Balance SheetConservative leverage, with debt-to-equity around 0.19–0.27 and improving from the 2024 peak, reduces balance-sheet strain. Steady equity growth adds resilience, preserving capacity to absorb demand swings and support operations through the cycle.

Negative Factors

Volatile Revenue DemandThe shift from strong growth in 2022–2023 to contraction in 2024 and 2026 shows that demand is cyclical and uneven. Repeated revenue volatility makes production planning and resource allocation less predictable, limiting confidence in sustained top-line momentum.

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

Market Cap: JPY 20.85B
Dividend Yield: 4.02%
Average Volume (3M): 117.70K
Price to Earnings (P/E): -67.7
Beta (1Y): 0.67
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 health is supported by a resilient balance sheet with a low debt-to-equity ratio of 0.19 and robust free cash flow generation of 2.1 billion. However, recent top-line contraction and a compressed net profit margin of 1.5% act as notable operational headwinds.

Income Statement

45Neutral

Balance Sheet

85Very Positive

Cash Flow

85Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	20.12B	21.66B	22.04B	17.54B	25.29B	20.50B
Gross Profit	6.57B	7.08B	7.11B	5.06B	8.18B	6.39B
EBITDA	971.17M	2.17B	2.89B	1.09B	3.62B	2.68B
Net Income	-315.88M	323.53M	964.91M	-72.80M	2.29B	1.57B
Balance Sheet
Total Assets	44.55B	44.96B	46.39B	42.95B	39.51B	35.43B
Cash, Cash Equivalents and Short-Term Investments	9.62B	10.52B	9.46B	9.03B	9.53B	9.77B
Total Debt	4.32B	6.21B	6.74B	8.01B	5.28B	5.22B
Total Liabilities	9.85B	11.15B	12.75B	12.35B	10.31B	10.06B
Stockholders Equity	33.52B	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 Price871.00

Price Trends

50DMA568.95Positive

100DMA543.98Positive

200DMA629.27Positive

Market Momentum

MACD90.06Negative

RSI86.94Negative

STOCH94.64Negative

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 871.00 is above the 20-day moving average (MA) of 650.10, above the 50-day MA of 568.95, and above the 200-day MA of 629.27, indicating a bullish trend. The MACD of 90.06 indicates Negative momentum. The RSI at 86.94 is Negative, neither overbought nor oversold. The STOCH value of 94.64 is Negative, 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	73Outperform	JPY 27.85B	11.02	―	2.42%	5.95%	392.59%
JP:6262	68Neutral	JPY 21.61B	-67.68	―	4.02%	-12.43%	-128.95%
JP:6482	60Neutral	JPY 24.40B	25.69	―	2.79%	-1.90%	-25.44%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:6203	52Neutral	JPY 23.67B	29.66	―	1.05%	-12.09%	350.51%
JP:6440	51Neutral	JPY 17.87B	12.36	―	1.64%	-3.74%	5.58%
JP:6217	38Underperform	JPY 3.71B	22.74	―	―	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	871.00	32.89	3.92%
JP:6151	Nitto Kohki Co., Ltd.	1488.00	-160.56	-9.74%
JP:6203	Howa Machinery, Ltd.	1907.00	731.52	62.23%
JP:6217	TSUDAKOMA Corp.	580.00	245.00	73.13%
JP:6440	Juki Corporation	610.00	137.70	29.16%
JP:6482	Yushin Precision Equipment Co., Ltd.	717.00	54.13	8.17%

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 an ordinary...

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: Nov 03, 2026

PEGASUS CO. LTD AI Stock Analysis