Gunze (3002) AI Stock Analysis

• Market Cap: €124.67B
• Dividend Yield: 3.84%
• Average Volume (3M): 190.29K
• Price to Earnings (P/E): 39.6
• Beta (1Y): 0.46
• Revenue Growth: >-0.01%
• EPS Growth: -49.82%
• 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: 65 Neutral
• Price Target: ¥4,033.00 ▲(5.44% Upside)

Gunze's overall stock score is driven by its strong financial performance, marked by steady revenue growth and a robust balance sheet. However, technical indicators suggest a lack of strong momentum, and the high P/E ratio indicates potential overvaluation. The absence of earnings call insights and corporate events limits additional context.

Gunze Business Overview & Revenue Model

Company Description

Gunze Limited (stock code: 3002) is a leading Japanese company primarily engaged in the manufacturing and sale of textiles, functional materials, and other related products. Founded in 1896, the company operates in several sectors, including apparel, industrial materials, and healthcare. Gunze is well-known for its high-quality nylon and elastic materials, which are widely used in clothing and various industrial applications. Additionally, the company has expanded into the healthcare sector, producing medical devices and materials that contribute to the enhancement of people's lives.

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: 3825.00
• 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 3825 is above the 20-day moving average (MA) of 3798.50, above the 50-day MA of 3802.00, and above the 200-day MA of 3221.15, indicating a bullish trend. The MACD of 9.42 indicates Positive momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 36.75 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	76 Outperform	$170.07B	12.77	10.88%	2.46%	9.12%	7.93%
8016	76 Outperform	¥88.81B	9.60	11.49%	6.13%	16.27%	17.45%
3201	72 Outperform	¥103.64B	14.41	―	2.54%	7.56%	-17.12%
3608	70 Outperform	$55.55B	3.85	17.77%	6.83%	-6.22%	679.61%
3002	65 Neutral	€124.67B	39.64	2.34%	3.84%	>-0.01%	-49.82%
2685	64 Neutral	€118.37B	13.97	11.28%	3.75%	3.96%	-36.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Gunze Corporate Events

Gunze Completes Treasury Shares Disposal for Stock Compensation

Gunze Limited has completed the payment procedures for the disposal of 19,914 treasury shares as restricted stock compensation. This move, decided by the Board of Directors, aims to align the interests of directors and corporate officers with the company’s performance, potentially enhancing its operational efficiency and stakeholder value.

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 Major Structural Reform in Apparel Business

Gunze Limited has announced a significant structural reform of its apparel business, which includes consolidating and reorganizing production and distribution bases, and seeking voluntary retirements. This move is part of their ‘VISION 2030 stage 2’ plan to enhance profitability. The company plans to close several factories and distribution centers, transferring their functions to other domestic and overseas bases, and will provide reemployment support for affected employees. These changes are expected to streamline operations and strengthen Gunze’s position in the apparel market.

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 Reports Decline in Q1 2025 Financial Results

Gunze Limited reported a decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 3.4% and a significant decrease in operating and ordinary profits compared to the previous year. The company also experienced a negative profit attributable to owners of the parent, reflecting challenges in its operational efficiency and market conditions. Despite these setbacks, Gunze has maintained its financial forecast for the fiscal year ending March 31, 2026, indicating a cautious optimism about future performance.

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.