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Gunze Limited (JP:3002)
:3002
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Gunze (3002) AI Stock Analysis

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JP:3002

Gunze

(Frankfurt:3002)

Rating:68Neutral
Price Target:
¥3,935.00
▲(7.96%Upside)
Gunze's overall stock score reflects its solid financial performance and attractive valuation, supported by strong profit margins and a healthy dividend yield. However, technical indicators suggest potential overbought conditions which could lead to short-term volatility. The company's financial stability positions it well within the apparel manufacturing industry, but attention to cash flow management is crucial.

Gunze (3002) vs. iShares MSCI Japan ETF (EWJ)

Gunze Business Overview & Revenue Model

Company DescriptionGunze Limited, with the ticker symbol 3002, is a diversified Japanese company engaged in the textiles, plastic films, and medical sectors. Founded in 1896, Gunze has evolved significantly from its origins in textiles, now offering a wide range of products including apparel, electronic components, and medical devices. The company's operations are structured into three main business segments: Apparel, Functional Solutions, and Life Creation, each catering to distinct markets and consumer needs.
How the Company Makes MoneyGunze Limited generates revenue through its three primary business segments. The Apparel segment, historically the company's core, produces and sells innerwear, legwear, and outerwear, leveraging its brand recognition and retail network. The Functional Solutions segment contributes to revenue by offering high-performance plastic films, engineering plastics, and electronic components, serving industries such as automotive, electronics, and packaging. Lastly, the Life Creation segment focuses on medical and healthcare products, including medical devices and equipment, which are increasingly significant as Gunze capitalizes on the growing healthcare industry. Partnerships with retailers, technological innovation, and a focus on sustainable products are key factors that enhance Gunze's market presence and revenue growth.

Gunze Financial Statement Overview

Summary
Gunze exhibits a solid financial performance with steady revenue growth, strong profit margins, and a robust balance sheet characterized by low leverage and high equity. However, the decline in free cash flow growth due to high capital expenditures poses a risk to liquidity if not addressed.
Income Statement
75
Positive
Gunze has demonstrated a steady increase in revenue over the years, with a notable revenue growth of 3.2% from 2024 to 2025. The gross profit margin for 2025 stood at 31.5%, indicating strong cost management. The net profit margin improved to 4.6% in 2025 from 3.8% in 2024, showing enhanced profitability. However, the EBIT margin, while improving, remains modest at 5.8% in 2025, suggesting room for operational efficiency improvements.
Balance Sheet
80
Positive
Gunze's balance sheet is robust, with a low debt-to-equity ratio of 0.07 in 2025, indicating minimal leverage and a strong equity position. The return on equity improved to 5.3% in 2025, reflecting efficient use of shareholder funds. The equity ratio remained stable at 74.7%, showcasing a solid financial foundation. These metrics highlight Gunze's strong financial stability and low-risk profile.
Cash Flow
70
Positive
The company's cash flow statements reveal a solid operating cash flow to net income ratio of 1.84 in 2025, indicating effective cash generation relative to net income. However, free cash flow has seen a decrease, with a significant decline in free cash flow growth, affected by high capital expenditures and investing activities, posing a risk to liquidity if continued.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue137.12B132.88B136.03B124.31B123.65B
Gross Profit43.18B41.72B40.48B37.61B37.98B
EBITDA16.04B10.92B12.53B11.90B9.77B
Net Income6.28B5.11B4.50B2.94B2.15B
Balance Sheet
Total Assets159.68B161.97B165.93B158.22B159.63B
Cash, Cash Equivalents and Short-Term Investments10.54B10.82B11.55B14.47B9.72B
Total Debt8.86B9.21B16.09B10.68B17.39B
Total Liabilities38.69B41.51B48.24B43.43B44.45B
Stockholders Equity119.19B118.77B115.88B113.03B113.71B
Cash Flow
Free Cash Flow1.06B10.41B-8.43B4.41B3.80B
Operating Cash Flow11.57B10.41B1.79B9.15B8.60B
Investing Cash Flow-7.49B-190.00M-5.92B6.81B1.17B
Financing Cash Flow-5.18B-11.35B1.01B-12.36B-9.34B

Gunze Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3645.00
Price Trends
50DMA
3451.62
Positive
100DMA
2991.07
Positive
200DMA
2777.91
Positive
Market Momentum
MACD
60.40
Positive
RSI
59.61
Neutral
STOCH
24.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3002, the sentiment is Positive. The current price of 3645 is above the 20-day moving average (MA) of 3614.50, above the 50-day MA of 3451.62, and above the 200-day MA of 2777.91, indicating a bullish trend. The MACD of 60.40 indicates Positive momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 24.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3002.

Gunze Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥127.96B9.8410.24%2.85%12.50%7.68%
75
Outperform
¥86.90B10.69
2.99%7.01%11.28%
74
Outperform
€131.31B14.0012.99%3.09%5.50%-30.13%
74
Outperform
$77.95B4.7216.23%5.73%-1.54%446.34%
69
Neutral
€80.29B9.1710.87%4.39%13.65%20.39%
68
Neutral
€118.47B19.145.24%2.16%3.18%26.10%
65
Neutral
$27.20B15.36-4.27%3.20%1.01%3.58%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3002
Gunze
3,630.00
941.14
35.00%
JP:3201
Japan Wool Textile Co., Ltd.
1,375.00
106.64
8.41%
JP:8016
Onward Holdings Co., Ltd.
592.00
73.12
14.09%
JP:2685
Adastria Co.,Ltd.
2,911.00
-194.80
-6.27%
JP:3569
Seiren Co
2,368.00
143.23
6.44%
JP:3608
TSI Holdings Co
1,109.00
308.12
38.47%

Gunze Corporate Events

Gunze Limited Announces Disposal of Treasury Shares for Executive Compensation
Jul 23, 2025

Gunze Limited has announced its decision to dispose of 19,914 treasury shares as restricted stock compensation for its directors and corporate officers. This move, approved by the Board of Directors, aims to align the interests of the management with shareholders and enhance corporate value. The shares will be allotted under a restricted shares allotment agreement, with a transfer restriction period extending until 2055, ensuring long-term commitment from the recipients.

The most recent analyst rating on (JP:3002) stock is a Hold with a Yen3500.00 price target. To see the full list of analyst forecasts on Gunze stock, see the JP:3002 Stock Forecast page.

Gunze Limited Announces Leadership Changes to Strengthen Management
May 14, 2025

Gunze Limited has announced a change in its leadership structure, with Takahiro Oka being appointed as the new Representative Director and Senior Managing Director. This strategic move aims to strengthen the company’s management framework. Additionally, new appointments and retirements in the board of directors and audit & supervisory board are scheduled to be finalized at the upcoming General Meeting of Shareholders on June 25, 2025. These changes are expected to enhance the company’s operational efficiency and strategic direction.

The most recent analyst rating on (JP:3002) stock is a Buy with a Yen7100.00 price target. To see the full list of analyst forecasts on Gunze stock, see the JP:3002 Stock Forecast page.

Gunze Limited Announces Enhanced Shareholder Return Policy and Increased Dividends
May 14, 2025

Gunze Limited has announced a significant change in its shareholder return policy, aiming to enhance corporate value and optimize capital profitability. The company plans to increase its dividend on equity target to 4.0% or more and implement flexible shareholder returns until its consolidated ROE reaches 8%. This change reflects Gunze’s commitment to improving capital profitability and responding to shareholder feedback, with a notable increase in dividends for the fiscal year ended March 31, 2025.

The most recent analyst rating on (JP:3002) stock is a Buy with a Yen7100.00 price target. To see the full list of analyst forecasts on Gunze stock, see the JP:3002 Stock Forecast page.

Gunze Limited Reports Strong Financial Performance for Fiscal Year 2025
May 14, 2025

Gunze Limited reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a notable improvement in its financial performance. The company achieved a 3.2% increase in net sales, reaching ¥137,117 million, and a significant rise in operating profit by 16.9% to ¥7,921 million. This growth reflects the company’s strategic efforts to enhance profitability and market competitiveness. Additionally, the company announced a 2-for-1 stock split and a substantial increase in dividends, indicating a strong commitment to shareholder returns. However, there was a decrease in comprehensive income by 26.2%, highlighting some challenges in the broader financial landscape.

The most recent analyst rating on (JP:3002) stock is a Buy with a Yen7100.00 price target. To see the full list of analyst forecasts on Gunze stock, see the JP:3002 Stock Forecast page.

Gunze Unveils Ambitious VISION 2030 Stage2 Plan
May 14, 2025

Gunze Limited has announced its medium-term management plan, ‘VISION 2030 Stage2,’ which outlines strategic goals from FY 2025 to FY 2027. The plan aims for significant financial and non-financial targets, including an ROE of 8% or more and a CO2 emission reduction rate of 31%. The strategy focuses on enhancing corporate value through business structural reforms, globalization, technological strengthening, and sustainability management, positioning Gunze as a global solutions company.

The most recent analyst rating on (JP:3002) stock is a Buy with a Yen7100.00 price target. To see the full list of analyst forecasts on Gunze stock, see the JP:3002 Stock Forecast page.

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: Jun 10, 2025