Shikibo Ltd. (3109) AI Stock Analysis

• Market Cap: ¥13.50B
• Dividend Yield: 4.8%
• Average Volume (3M): 45.87K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.54
• Revenue Growth: 4.49%
• EPS Growth: 26.84%
• Country: JP
• Employees: 2,198
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 57.54
• Shares Outstanding: 12,810,829
• 10 Day Avg. Volume: 44,250
• 30 Day Avg. Volume: 45,866
• PEG Ratio: 2.56
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.32
• P/FCF Ratio: -15.04
• 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: 72 Outperform
• Price Target: ¥1,241.00 ▲(25.48% Upside)
• Action: Upgraded Date: 11/01/25
• Date: Action: Upgraded 11/01/25

Shikibo Ltd. scores well due to its strong technical indicators and attractive valuation, with a reasonable P/E ratio and high dividend yield. However, the financial performance is somewhat constrained by low profitability margins and declining free cash flow, which slightly dampens the overall score.

Positive Factors

Stable Revenue Growth

Consistent top-line growth across years implies stable demand and product-market fit in Shikibo's apparel/manufacturing markets. Durable revenue expansion supports capacity to invest in product development and operations, reducing execution risk over a 2–6 month horizon.

Healthy Balance Sheet

Solid equity ratio and moderate leverage provide financial flexibility to absorb cyclical shocks, fund targeted capex, and pursue strategic initiatives without overreliance on external financing, supporting the firm's resilience and credit profile over multiple quarters.

Strong Cash Conversion

Robust operating cash conversion indicates core operations generate cash above accounting earnings, enabling working-capital management and funding of near-term needs. This durable cash generation cushions the business against earnings volatility and supports operational continuity.

Negative Factors

Low Net Profit Margin

A sub-3% net margin signals limited profitability envelope and low buffer against cost inflation or pricing pressure. Persistently thin margins constrain reinvestment capacity, limit earnings resilience, and make long-term profitability sensitive to small adverse shifts in costs or sales mix.

Negative Free Cash Flow

A negative FCF outcome indicates capital expenditures or working-capital needs outpacing operating cash generation, reducing internal funding for dividends, debt reduction, or growth. Over several months this can force higher external financing or strategic trade-offs.

Modest Return on Equity

ROE near 2.6% points to limited capital efficiency and weak shareholder value creation versus required returns. Even with moderate leverage, low ROE suggests challenges in converting assets and equity into meaningful profits sustainably across business cycles.

Shikibo Ltd. Business Overview & Revenue Model

Company Description

Shikibo Ltd. manufactures, processes, and markets various textile products in Japan and internationally. The company offers spun yarns, textured yarns, textile materials and products, knit materials and products, bedding materials and products, etc. It also manufactures, processes, and markets various chemical industry products, including industrial adhesive agents, food additives, etc.; industrial materials comprising dryer fabrics for paper making, filter cloths, etc.; and advanced composite materials. In addition, the company is involved in the real estate development activities, such as urban development. Shikibo Ltd. was founded in 1892 and is headquartered in Osaka, Japan.

How the Company Makes Money

Shikibo Ltd. generates revenue through several key streams, primarily from the sale of textile products to manufacturers and retailers in various sectors, including fashion, automotive, and home furnishings. The company has established long-term contracts with major brands, which provide a steady income from bulk orders. Additionally, Shikibo Ltd. invests in research and development to create innovative textile solutions that meet the evolving demands of the market, allowing them to command premium pricing. Partnerships with other companies in the textile supply chain, such as dye manufacturers and logistics firms, further enhance their operational efficiency and profitability. The company also explores opportunities in overseas markets, diversifying its revenue sources and reducing dependency on domestic sales.

Shikibo Ltd. Financial Statement Overview

Summary

Shikibo Ltd. exhibits steady revenue growth and maintains a strong balance sheet with manageable debt levels. However, profitability margins are low, and recent declines in free cash flow could pose challenges. The company's financial position is stable, but improvements in profitability and cash flow management would enhance overall performance.

Income Statement

Shikibo Ltd. has shown consistent revenue growth over the years, with a slight increase of 1.05% from 2024 to 2025. The gross profit margin stands at 18.51% for 2025, reflecting stable cost management. However, the net profit margin is relatively low at 2.34%, indicating profitability challenges. EBIT and EBITDA margins are moderate, suggesting some operational efficiency but room for improvement.

Balance Sheet

The company maintains a healthy equity ratio of 41.13%, denoting solid financial stability. The debt-to-equity ratio is 0.76, indicating a manageable level of leverage, which is favorable for the company's financial health. Return on equity is modest at 2.60%, showing average profitability relative to equity.

Cash Flow

Operating cash flow is positive, indicating effective cash generation from operations. However, the free cash flow has decreased, resulting in a negative figure for 2025, highlighting potential issues in capital expenditure management. The operating cash flow to net income ratio is 2.31, which suggests strong cash conversion despite the decline in free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	39.28B	39.09B	38.68B	37.89B	35.67B	33.52B
Gross Profit	7.28B	7.24B	7.08B	6.61B	6.60B	6.33B
EBITDA	3.46B	3.65B	3.40B	3.06B	3.26B	3.13B
Net Income	898.00M	914.00M	800.00M	1.57B	49.00M	9.00M
Balance Sheet
Total Assets	84.65B	85.61B	83.30B	82.04B	81.60B	82.68B
Cash, Cash Equivalents and Short-Term Investments	6.35B	5.90B	5.37B	5.00B	5.08B	6.45B
Total Debt	26.53B	26.62B	25.43B	24.77B	24.83B	28.01B
Total Liabilities	49.82B	50.37B	49.22B	48.69B	49.79B	50.82B
Stockholders Equity	34.79B	35.21B	34.06B	33.34B	31.81B	30.96B
Cash Flow
Free Cash Flow	464.00M	-835.00M	755.00M	-59.00M	2.42B	447.00M
Operating Cash Flow	703.00M	2.11B	3.55B	1.11B	2.99B	2.77B
Investing Cash Flow	-272.50M	-2.77B	-2.70B	-682.00M	-654.00M	-2.34B
Financing Cash Flow	-392.50M	1.07B	-509.00M	-579.00M	-3.79B	-509.00M

Shikibo Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 989.00
• 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:3109, the sentiment is Neutral. The current price of 989 is below the 20-day moving average (MA) of 1128.10, below the 50-day MA of 1091.82, and below the 200-day MA of 1012.64, indicating a neutral trend. The MACD of 14.65 indicates Positive momentum. The RSI at 50.27 is Neutral, neither overbought nor oversold. The STOCH value of 61.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3109.

Shikibo Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3569	78 Outperform	¥186.97B	9.78	10.24%	2.43%	6.08%	8.55%
3110	77 Outperform	¥791.52B	3.29	11.10%	0.99%	9.49%	55.64%
3104	75 Outperform	¥110.49B	15.30	―	1.79%	10.76%	54.82%
3109	72 Outperform	¥13.50B	4.54	―	4.80%	4.49%	26.84%
3002	66 Neutral	¥149.47B	17.53	2.34%	3.38%	>-0.01%	-49.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3402	58 Neutral	¥1.76T	117.21	3.37%	1.85%	-2.18%	26.45%

Shikibo Ltd. Corporate Events

Shikibo Lifts Nine-Month Profit Despite Margin Pressure, Keeps Dividend Steady

Shikibo Ltd. reported consolidated net sales of ¥29.66 billion for the nine months to December 31, 2025, up 4.9% year on year, while operating and ordinary profit declined 10.6% and 17.3%, respectively. Profit attributable to owners of parent more than doubled to ¥1.08 billion, lifting basic earnings per share to ¥84.77 and supporting an equity-to-asset ratio of 39.9% despite a slight dilution from higher total assets.

The company maintained its dividend policy, paying ¥25 per share at the second quarter and forecasting a full-year total of ¥50, unchanged from the previous fiscal year. Shikibo left its full-year earnings forecast undisclosed and confirmed the new consolidation of PT. Shikibo Mermaid Indonesia, suggesting ongoing portfolio adjustments even as it navigates margin pressure and moderates profit growth.

The most recent analyst rating on (JP:3109) stock is a Buy with a Yen1261.00 price target. To see the full list of analyst forecasts on Shikibo Ltd. stock, see the JP:3109 Stock Forecast page.