Manageable LeverageA low debt-to-equity (~0.23) gives NAIGAI structural financial flexibility to fund operations, inventory and working capital while it repairs profitability. Manageable leverage reduces refinancing risk and preserves capacity to absorb temporary cash burn over the next several quarters.

Steady Gross Margins (mid-30%)Consistent mid-30% gross margins indicate durable product-level profitability in core legwear/innerwear categories. This margin base provides a buffer against input cost swings and supports potential operating leverage if SG&A discipline and modest revenue growth continue over the medium term.

Revenue Recovery And StabilizationModest but sustained revenue growth (~1.5% in 2026) shows the company has stabilized demand after prior declines. Recovery suggests durable market access across wholesale, retail and e-commerce channels and provides a base to rebuild margins and cash generation if cost control and mix improvements continue.

Bears Say

Persistent Negative Operating & Free Cash FlowConsistent negative operating and free cash flow signals ongoing cash burn and reliance on balance-sheet flexibility or external funding. Over 2–6 months this constrains capital allocation, limits ability to invest in growth initiatives, and raises execution risk if profitability does not improve.

Fragile Profitability (operating Loss, Tiny Net Margin)An operating loss and sub‑1% net margin show earnings are highly sensitive to small cost or demand moves. Fragile profitability reduces retained earnings, limits reinvestment capacity, and makes sustainable recovery dependent on structural cost or revenue improvements rather than short-term fixes.

Low Returns On Equity; Prior Large LossesSub‑1% ROE and historical large losses indicate the company has struggled to convert capital into shareholder returns. This reflects structural challenges—pricing, mix or cost base—and suggests a multi-quarter effort is needed to restore consistent profitability and meaningful returns to equity holders.

8013 FAQ

What was NAIGAI Co., Ltd.’s price range in the past 12 months?

NAIGAI Co., Ltd. lowest stock price was ¥234.00 and its highest was ¥450.00 in the past 12 months.

What is NAIGAI Co., Ltd.’s market cap?

NAIGAI Co., Ltd.’s market cap is ¥2.42B.

When is NAIGAI Co., Ltd.’s upcoming earnings report date?

NAIGAI Co., Ltd.’s upcoming earnings report date is Jun 17, 2026 which is in 93 days.

How were NAIGAI Co., Ltd.’s earnings last quarter?

NAIGAI Co., Ltd. released its earnings results on Mar 13, 2026. The company reported ¥55.41 earnings per share for the quarter, beating the consensus estimate of N/A by ¥55.41.

Is NAIGAI Co., Ltd. overvalued?

According to Wall Street analysts NAIGAI Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does NAIGAI Co., Ltd. pay dividends?

NAIGAI Co., Ltd. does not currently pay dividends.

What is NAIGAI Co., Ltd.’s EPS estimate?

NAIGAI Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does NAIGAI Co., Ltd. have?

NAIGAI Co., Ltd. has 8,217,281 shares outstanding.

What happened to NAIGAI Co., Ltd.’s price movement after its last earnings report?

NAIGAI Co., Ltd. reported an EPS of ¥55.41 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 0.685%.

Which hedge fund is a major shareholder of NAIGAI Co., Ltd.?

Currently, no hedge funds are holding shares in JP:8013

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

NAIGAI Co., Ltd.

Naigai Co.,Ltd. plans, manufactures, wholesales, imports, and exports textile products. It offers men's, ladies, and children's socks, panty stockings, etc. The company was founded in 1920 and is headquartered in Tokyo, Japan.