Unitika Ltd. (3103) AI Stock Analysis

• Market Cap: ¥11.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: 4.22%
• EPS Growth: -21.68%
• Country: JP
• Employees: 2,907
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -83.09
• Shares Outstanding: 57,752,342
• 10 Day Avg. Volume: 827,810
• 30 Day Avg. Volume: 1,005,763
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 4.28
• 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: 54 Neutral
• Price Target: ¥332.00 ▲(13.70% Upside)

Unitika Ltd.'s stock score is primarily influenced by its financial performance and technical analysis. The financial strain due to high leverage and negative profitability metrics is a significant risk. However, positive technical indicators provide some optimism. The valuation is weak due to negative earnings and lack of dividends.

Positive Factors

Revenue Growth

Unitika's positive revenue growth indicates a strong demand for its products, suggesting resilience and potential for market expansion.

Cash Position Improvement

Improved cash position enhances liquidity, allowing Unitika to better manage financial obligations and invest in growth opportunities.

Sustainability Focus

Unitika's commitment to sustainability aligns with global trends, potentially increasing its appeal to environmentally conscious consumers.

Negative Factors

High Leverage

High leverage poses financial risk, limiting Unitika's flexibility to navigate economic downturns and invest in growth initiatives.

Negative Profitability Metrics

Negative profitability metrics highlight operational inefficiencies, potentially affecting long-term financial health and investor confidence.

Decreased Operating Cash Flow

Decreased operating cash flow raises concerns about Unitika's ability to generate cash from core operations, impacting future investments.

Unitika Ltd. Business Overview & Revenue Model

Company Description

Unitika Ltd. (3103) is a Japan-based company primarily engaged in the manufacture and sale of synthetic fibers, plastics, and various advanced materials. The company operates in multiple sectors, including textiles, industrial materials, and packaging. Its core products include nylon and polyester fibers, non-woven fabrics, and eco-friendly materials, which cater to diverse industries such as apparel, automotive, and medical applications. Unitika is committed to innovation and sustainability, focusing on developing high-performance materials that meet the evolving needs of its customers.

How the Company Makes Money

Unitika Ltd. generates revenue primarily through the sale of its synthetic fibers and advanced materials. The company's revenue model is driven by producing and supplying high-quality textiles and industrial materials to various sectors, including fashion, automotive, and healthcare. Key revenue streams include the sale of nylon and polyester fibers, non-woven fabrics, and specialized materials for packaging solutions. Additionally, Unitika engages in strategic partnerships with other manufacturers and distributors to expand its market reach and enhance product offerings. The company's focus on sustainability and eco-friendly materials also attracts customers looking for environmentally responsible options, contributing positively to its earnings.

Unitika Ltd. Financial Statement Overview

Summary

Unitika Ltd. faces financial strain with negative profitability metrics and high leverage. Despite revenue growth and improved free cash flow, high debt levels and negative net income indicate significant challenges.

Income Statement

Unitika Ltd. has faced significant challenges in maintaining profitability. Despite an increase in total revenue from the previous year, the company reported a negative net income in the latest fiscal year. The gross profit margin has improved, but the negative EBITDA and EBIT margins indicate operational inefficiencies. The revenue growth rate has been positive, but the net profit margin is concerning, pointing to potential cost management issues.

Balance Sheet

The company's balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. Stockholders' equity has decreased, impacting the equity ratio negatively. However, the company's cash position has shown improvement, providing some liquidity cushion. The return on equity has been adversely affected by the negative net income, indicating inefficiencies in generating shareholder returns.

Cash Flow

Unitika Ltd.'s cash flow statements depict mixed signals. The operating cash flow is positive but has decreased compared to previous years, which raises concerns about cash generation from core operations. The free cash flow has improved, showing growth, yet the free cash flow to net income ratio is unfavorable due to negative net income. The operating cash flow to net income ratio also highlights potential issues in translating earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.66B	126.41B	118.34B	117.94B	114.71B	110.38B
Gross Profit	27.31B	25.70B	18.88B	23.82B	27.86B	27.16B
EBITDA	-29.69B	-28.17B	1.69B	7.78B	9.73B	10.83B
Net Income	-24.96B	-24.28B	-5.44B	102.00M	2.22B	3.86B
Balance Sheet
Total Assets	169.40B	149.43B	186.33B	190.00B	191.40B	190.40B
Cash, Cash Equivalents and Short-Term Investments	35.16B	13.50B	11.21B	10.55B	18.98B	23.37B
Total Debt	92.14B	93.53B	93.93B	93.82B	94.34B	97.17B
Total Liabilities	131.81B	133.19B	148.09B	146.09B	148.33B	149.21B
Stockholders Equity	37.36B	15.57B	36.76B	42.11B	41.30B	39.48B
Cash Flow
Free Cash Flow	0.00	2.23B	1.05B	-8.01B	-126.00M	7.57B
Operating Cash Flow	0.00	6.29B	8.17B	509.00M	8.67B	14.87B
Investing Cash Flow	0.00	-3.15B	-7.54B	-8.09B	-8.99B	-6.17B
Financing Cash Flow	0.00	-435.00M	-279.00M	-1.66B	-4.21B	-4.14B

Unitika Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 292.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3103, the sentiment is Positive. The current price of 292 is above the 20-day moving average (MA) of 284.45, above the 50-day MA of 235.38, and above the 200-day MA of 187.96, indicating a neutral trend. The MACD of 21.79 indicates Positive momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 9.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3103.

Unitika Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4633	75 Outperform	¥113.77B	11.35	―	3.98%	5.40%	14.80%
4611	74 Outperform	¥35.78B	4.16	―	3.79%	14.83%	51.42%
4629	70 Outperform	¥7.26B	9.16	―	2.54%	2.26%	51.04%
3101	68 Neutral	$101.52B	36.06	―	3.33%	-1.68%	1262.84%
4409	66 Neutral	¥15.42B	12.59	―	2.77%	1.30%	-5.03%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3103	54 Neutral	¥11.25B	-0.45	―	―	4.22%	-21.68%