Gunze (3002) AI Stock Analysis

• Market Cap: €117.82B
• Dividend Yield: 2.2%
• Average Volume (3M): 186.69K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.50
• Revenue Growth: 3.18%
• EPS Growth: 26.10%
• Country: JP
• Employees: 4,883
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Apparel - Manufacturers
• EPS (TTM): 56.22
• Shares Outstanding: 34,587,032
• 10 Day Avg. Volume: 155,560
• 30 Day Avg. Volume: 186,686
• PEG Ratio: 2.21
• Price to Book (P/B): 0.37
• 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: €3,500.00
• Price Target Upside: -3.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ¥3,935.00 ▲(8.25%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 Business Overview & Revenue Model

Company Description

Gunze Limited engages in the functional solutions, apparel, and lifestyle creations businesses in Japan. It offers plastic films comprising shrink films, flexible multilayer sheets, functional and multilayer film tubings, opp films, and nylon films, as well as consulting services related to comprehensive package system; engineering plastics, such as small-diameter fluoro resin heat-shrinkable tubes, thin-walled fluoro resin tubes, fiber products, films and sheets, and seamless belts; electronic components, including various touch screens and functional films, as well as commissioned manufacturing services; and medical materials consisting of bioabsorbable surgical suture threads, bone fixation devices, artificial dermis, absorbable reinforcement felt, and medical stockings. The company also provides equipment for packaging and film wrapping, post-press of printing, and pharmaceuticals and cosmetics, as well as equipment for dairy, beverage, and food products; innerwear, legwear, nightwear, and home casual wear products for physical and mental relaxation; and threads and accessories, such as sewing threads for clothing, industrial materials, and automotive applications. In addition, it operates 22 Gunze sports clubs, and fitness studios, spas, and junior schools; sells plant materials and nursery trees, flowers, and gardening products; develops commercial facilities; leases shopping complexes, housing, and office buildings; and offers technology, equipment, and funds energy conservation, as well as thermal insulation materials and solar power generation systems. The company was formerly known as Gunze Silk Manufacturing Co., Ltd. and changed its name to Gunze Limited in 1967. Gunze Limited was founded in 1896 and is headquartered in Ayabe, Japan.

How the Company Makes Money

Gunze Limited generates revenue through multiple streams, primarily from its textiles and apparel division, which sells innerwear, hosiery, and other clothing items. The functional solutions sector provides significant income by producing high-performance materials for electronic components, medical devices, and industrial applications. Additionally, the company earns from its lifestyle creation business through real estate ventures and retail operations, which include shopping centers and leisure facilities. Strategic partnerships and innovation in product development also play crucial roles in enhancing Gunze's revenue generation.

Gunze Financial Statement Overview

Summary

Gunze maintains a strong and stable financial foundation with solid profitability and a conservative balance sheet. However, recent cash flow challenges could impact future liquidity and growth opportunities. Continued focus on cash generation and improving return on equity will be crucial for sustaining financial health.

Income Statement

Gunze's income statement reflects a solid financial performance with a consistent increase in profitability. The gross profit margin of 31.26% and net profit margin of 4.14% in TTM show efficient cost management. Revenue growth was modest compared to the previous year. The EBIT margin at 5.20% and EBITDA margin at 9.11% indicate healthy operational efficiency.

Balance Sheet

The balance sheet of Gunze shows a strong financial position with a debt-to-equity ratio of 0.14, highlighting a conservative leverage strategy. The equity ratio of 70.29% underscores a robust capital structure. However, the return on equity of 4.69% suggests room for improvement in generating returns for shareholders.

Cash Flow

Gunze's cash flow statement reveals some challenges. The absence of operating and free cash flow in the TTM period raises concerns about cash generation and liquidity. Nonetheless, previous periods showed a positive operating cash flow to net income ratio, indicating operational cash efficiency.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	134.35B	132.88B	136.03B	124.31B	123.65B	140.31B
Gross Profit	42.01B	41.72B	40.48B	37.61B	37.98B	42.78B
EBITDA	12.24B	10.92B	11.71B	11.07B	10.96B	13.27B
Net Income	5.57B	5.11B	4.50B	2.94B	2.15B	4.39B
Balance Sheet
Total Assets	168.86B	161.97B	165.93B	158.22B	159.63B	166.63B
Cash, Cash Equivalents and Short-Term Investments	12.31B	10.82B	11.55B	14.47B	9.72B	9.27B
Total Debt	16.34B	9.21B	16.09B	10.68B	17.39B	25.19B
Total Liabilities	48.47B	41.51B	48.24B	43.43B	44.45B	57.49B
Stockholders Equity	118.68B	118.77B	115.88B	113.03B	113.71B	107.75B
Cash Flow
Free Cash Flow	0.00	2.79B	-8.43B	4.41B	3.80B	4.09B
Operating Cash Flow	0.00	10.41B	1.79B	9.15B	8.60B	13.69B
Investing Cash Flow	0.00	-190.00M	-5.92B	6.81B	1.17B	-8.26B
Financing Cash Flow	0.00	-11.35B	1.01B	-12.36B	-9.34B	-4.89B

Gunze Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3635.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

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 3635 is above the 20-day moving average (MA) of 3548.50, above the 50-day MA of 3150.86, and above the 200-day MA of 2711.01, indicating a bullish trend. The MACD of 101.26 indicates Positive momentum. The RSI at 71.29 is Negative, neither overbought nor oversold. The STOCH value of 88.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3002.

Gunze Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3002	68 Neutral	€117.82B	19.03	5.24%	2.20%	3.18%	26.10%
Sector *	63 Neutral	kr27.71B	12.66	189.22%	4.20%	9.05%	-18.19%
SERNF		$869.31M	11.14	10.24%	0.02%	―	―
TSIHF		$537.24M	5.66	14.52%	5.49%	―	―
OWK		€475.41M	8.98	10.13%	4.38%	―	―
1E0		€781.93M	13.41	12.99%	3.75%	―	―
3201	74 Outperform	¥93.94B	11.60		338.27%	5.77%	11.61%

Gunze Corporate Events

Gunze Limited Announces Leadership Changes to Strengthen Management

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

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

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

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.