Unitika Ltd. (3103) AI Stock Analysis

• Market Cap: ¥85.91B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 0.3
• Beta (1Y): 1.72
• Revenue Growth: 4.22%
• EPS Growth: -21.68%
• Country: JP
• Employees: 2,907
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 245.21
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ¥1,527.00 ▲(428.37% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is held back mainly by weak financial performance (negative profitability and high leverage), only partly offset by improving free cash flow. Technical signals are mixed with neutral momentum and near-term weakness versus the 20-day average. Valuation appears attractive due to an extremely low P/E, providing the primary support to the overall score.

Positive Factors

Revenue Growth

Sustained top-line growth indicates ongoing demand for Unitika's polymer, fiber and resin products across end markets. Over 2-6 months this supports capacity utilization, pricing leverage and reinvestment in R&D or production to deepen market position and diversify end-market exposure.

Improving Free Cash Flow

An improving free cash flow trend enhances the company's ability to fund capex, service debt and pursue strategic investments without relying on equity raises. Even with weak earnings, stronger FCF reduces refinancing risk and gives management durable flexibility to execute long-term plans.

Gross Margin Improvement

Improving gross margins suggest better product mix, pricing or cost control in core materials businesses. If sustained, margin expansion supports operating leverage, helps absorb fixed costs, and provides a pathway to restore EBITDA and EBIT profitability over the medium term.

Negative Factors

Negative Profitability

Persistent negative net income and operating margins indicate structural profitability issues in converting revenue to earnings. Over months this weakens return metrics, hampers equity rebuild, and constrains investment capacity unless operational efficiencies or higher-margin sales are achieved.

High Leverage

Elevated debt-to-equity and declining shareholders' equity raise solvency and refinancing risk. High leverage increases interest burden and reduces strategic flexibility, making the company more vulnerable to margin shocks or cyclical downturns and limiting long-term investment options.

Weakening Operating Cash Flow

A declining trend in operating cash flow, despite positive FCF improvement, points to weakening core cash generation. Over time this can pressure liquidity and force trade-offs between debt servicing, capex and working capital, undermining sustainable operations and growth plans.

Unitika Ltd. Business Overview & Revenue Model

Company Description

Unitika Ltd. manufactures and sells polymers, advanced materials, and fibers and textiles in Japan and internationally. The company offers polymers, including nylon and polyester films; nylon, polyester, and polyarylate plastic products; polyester, nylon spunbonded, and cotton spunlace nonwoven products; and biodegradable plastic materials. It also provides advanced materials comprising activated carbon fibers, glass fabrics, glass beads, and porous plates, as well as industrial and biomass-based materials. In addition, the company offers fibers and textiles, such as garments, lifestyle materials, and bedding products. Unitika Ltd. was founded in 1889 and is headquartered in Osaka, Japan.

How the Company Makes Money

null

Unitika Ltd. Financial Statement Overview

Summary

Profitability is weak with negative net income and negative EBITDA/EBIT margins despite revenue growth and some gross margin improvement. Leverage is high (elevated debt-to-equity) and equity has declined, increasing balance-sheet risk. Cash flow is mixed: operating cash flow remains positive but has weakened, while free cash flow has improved.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	93.54B	93.95B	93.82B	94.34B	97.17B
Total Liabilities	131.81B	133.19B	148.08B	146.08B	148.32B	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: 289.00
• 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:3103, the sentiment is Positive. The current price of 289 is below the 20-day moving average (MA) of 1510.60, below the 50-day MA of 1062.82, and below the 200-day MA of 428.67, indicating a neutral trend. The MACD of 72.72 indicates Positive momentum. The RSI at 53.90 is Neutral, neither overbought nor oversold. The STOCH value of 44.36 is Neutral, 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
4205	79 Outperform	$346.79B	14.16	9.59%	3.91%	0.87%	16.71%
7970	74 Outperform	¥163.59B	14.73	―	2.84%	6.06%	19.76%
4118	74 Outperform	$301.27B	9.05	5.47%	3.41%	2.60%	9.50%
6988	68 Neutral	$2.06T	17.01	11.98%	1.54%	1.84%	-6.57%
3101	62 Neutral	¥123.03B	13.27	―	3.21%	-1.68%	1262.84%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
3103	55 Neutral	¥85.91B	0.29	―	―	4.22%	-21.68%