Gunze (3002) AI Stock Analysis

• Market Cap: ¥137.72B
• Dividend Yield: 3.42%
• Average Volume (3M): 190.29K
• Price to Earnings (P/E): 52.2
• Beta (1Y): 0.52
• Revenue Growth: >-0.01%
• EPS Growth: -49.83%
• Country: JP
• Employees: 4,883
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 25.10
• Shares Outstanding: 34,587,032
• 10 Day Avg. Volume: 144,520
• 30 Day Avg. Volume: 190,293
• PEG Ratio: 0.53
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 82.10
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥4,460.00 ▲(5.69% Upside)

Gunze's overall stock score is driven by its strong financial performance and bullish technical indicators. However, the high P/E ratio suggests potential overvaluation, and liquidity risks from declining free cash flow growth warrant caution. The absence of earnings call and corporate events data limits further insights.

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 generates revenue through multiple streams, primarily from the sale of textiles and functional materials, which are used in fashion and industrial applications. The apparel segment, including garments made from its proprietary materials, contributes significantly to its earnings. The company also earns income from its healthcare division, which offers medical devices and materials, benefiting from partnerships with healthcare providers and manufacturers. Additionally, Gunze engages in research and development to innovate new products, thereby maintaining a competitive edge and creating new revenue opportunities. Strategic collaborations with other companies in the textile and healthcare sectors further enhance its market presence and financial performance.

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. While cash flow generation remains strong, the decline in free cash flow growth due to high capital expenditure warrants attention.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	135.97B	137.12B	132.88B	136.03B	124.31B	123.65B
Gross Profit	43.05B	43.18B	41.72B	40.48B	37.61B	37.98B
EBITDA	12.09B	16.04B	10.92B	12.53B	11.90B	9.77B
Net Income	3.21B	6.28B	5.11B	4.50B	2.94B	2.15B
Balance Sheet
Total Assets	158.63B	159.68B	161.97B	165.93B	158.22B	159.63B
Cash, Cash Equivalents and Short-Term Investments	10.02B	10.54B	10.82B	11.55B	14.47B	9.72B
Total Debt	15.81B	8.86B	9.21B	16.09B	10.68B	17.39B
Total Liabilities	46.63B	38.69B	41.51B	48.24B	43.43B	44.45B
Stockholders Equity	110.24B	119.19B	118.77B	115.88B	113.03B	113.71B
Cash Flow
Free Cash Flow	0.00	1.06B	2.79B	-8.43B	4.41B	3.80B
Operating Cash Flow	0.00	11.57B	10.41B	1.79B	9.15B	8.60B
Investing Cash Flow	0.00	-7.49B	-190.00M	-5.92B	6.81B	1.17B
Financing Cash Flow	0.00	-5.18B	-11.35B	1.01B	-12.36B	-9.34B

Gunze Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4220.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 4220 is above the 20-day moving average (MA) of 4143.00, above the 50-day MA of 3951.40, and above the 200-day MA of 3433.66, indicating a bullish trend. The MACD of 81.00 indicates Positive momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3569	75 Outperform	¥171.68B	12.42	10.24%	2.43%	6.08%	8.55%
8016	72 Outperform	¥96.56B	10.44	11.49%	5.67%	16.27%	17.45%
3201	72 Outperform	¥108.12B	15.52	―	2.67%	7.56%	-17.12%
3608	68 Neutral	$61.32B	4.27	17.77%	6.15%	-6.22%	679.61%
3002	66 Neutral	¥137.72B	52.22	2.34%	3.42%	>-0.01%	-49.83%
2685	64 Neutral	€129.41B	15.27	11.28%	3.50%	3.96%	-36.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Gunze Corporate Events

Gunze Limited Reports Decline in Semi-Annual Financial Results Amid Stock Split

Gunze Limited reported a decline in its consolidated financial results for the six months ended September 30, 2025, with net sales decreasing by 3.1% and a significant drop in profit attributable to owners of the parent. The company conducted a 2-for-1 stock split on April 1, 2025, impacting earnings per share calculations. Despite these challenges, Gunze forecasts a modest increase in net sales and operating profit for the fiscal year ending March 31, 2026, indicating cautious optimism about future performance.

Gunze Limited Announces Results of Voluntary Retirement Program

Gunze Limited announced the results of its voluntary retirement program, part of a structural reform in its apparel division. The program targeted employees aged 40 and older, resulting in 82 retirements. The associated restructuring expenses have been recorded as extraordinary losses but were already included in the company’s earnings forecast for the fiscal year ending March 2026, indicating no change in financial projections.

Gunze Limited Announces Treasury Share Purchase Plan

Gunze Limited has announced a resolution by its Board of Directors to purchase up to 1.4 million of its own shares, representing 4.05% of its total outstanding shares, for a maximum of 5 billion yen. This decision aligns with the company’s revised shareholder return policy aimed at providing stable and continuous profit returns to shareholders and enhancing corporate value.