Gunze (3002) AI Stock Analysis

• Market Cap: €124.83B
• Dividend Yield: 3.78%
• Average Volume (3M): 205.43K
• Price to Earnings (P/E): 39.7
• Beta (1Y): 0.48
• Revenue Growth: 1.05%
• EPS Growth: -36.55%
• Country: JP
• Employees: 4,883
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Manufacturers
• EPS (TTM): -45.37
• Shares Outstanding: 34,587,032
• 10 Day Avg. Volume: 357,030
• 30 Day Avg. Volume: 205,430
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: €3,742.92
• Price Target Upside: -2.53% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: ¥3,985.00 ▲(3.78% Upside)

Gunze's overall stock score is driven by its solid financial performance and robust balance sheet, which provide a strong foundation. However, the high P/E ratio suggests potential overvaluation, and mixed technical signals indicate uncertainty in short-term price movements. The attractive dividend yield is a positive factor, offering some return to investors.

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 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	137.12B	132.88B	136.03B	124.31B	123.65B
Gross Profit	43.18B	41.72B	40.48B	37.61B	37.98B
EBITDA	16.04B	10.92B	12.53B	11.90B	9.77B
Net Income	6.28B	5.11B	4.50B	2.94B	2.15B
Balance Sheet
Total Assets	159.68B	161.97B	165.93B	158.22B	159.63B
Cash, Cash Equivalents and Short-Term Investments	10.54B	10.82B	11.55B	14.47B	9.72B
Total Debt	8.86B	9.21B	16.09B	10.68B	17.39B
Total Liabilities	38.69B	41.51B	48.24B	43.43B	44.45B
Stockholders Equity	119.19B	118.77B	115.88B	113.03B	113.71B
Cash Flow
Free Cash Flow	1.06B	10.41B	-8.43B	4.41B	3.80B
Operating Cash Flow	11.57B	10.41B	1.79B	9.15B	8.60B
Investing Cash Flow	-7.49B	-190.00M	-5.92B	6.81B	1.17B
Financing Cash Flow	-5.18B	-11.35B	1.01B	-12.36B	-9.34B

Gunze Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3840.00
• 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 3840 is above the 20-day moving average (MA) of 3759.75, above the 50-day MA of 3649.80, and above the 200-day MA of 2860.49, indicating a bullish trend. The MACD of 70.85 indicates Positive momentum. The RSI at 57.50 is Neutral, neither overbought nor oversold. The STOCH value of 39.81 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
3002	66 Neutral	€124.83B	39.69	2.97%	3.78%	1.05%	-36.55%
Sector *	56 Neutral	HK$25.48B	5.05	-2.69%	5.69%	-0.45%	-52.99%
SERNF	―	$1.05B	10.65	10.88%	2.62%	―	―
TSIHF	―	$513.85M	4.78	16.23%	5.44%	―	―
OWK	―	€503.43M	9.05	10.87%	―	―	―
1E0	―	€802.15M	13.73	12.99%	―	―	―
3201	74 Outperform	¥92.93B	11.43		2.83%	7.01%	11.28%

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.

Gunze Limited Announces Disposal of Treasury Shares for Executive Compensation

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

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.