Shikibo Ltd. (3109) AI Stock Analysis

• Market Cap: ¥12.77B
• Dividend Yield: 4.89%
• Average Volume (3M): 43.68K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.52
• Revenue Growth: 4.49%
• EPS Growth: 26.84%
• Country: JP
• Employees: 2,198
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 13.40
• Shares Outstanding: 12,810,829
• 10 Day Avg. Volume: 45,920
• 30 Day Avg. Volume: 43,683
• 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: ¥1,114.00 ▲(12.64% Upside)

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

Revenue Growth

Steady revenue growth indicates a stable demand for Shikibo's products and effective market positioning, supporting long-term business sustainability.

Balance Sheet Health

A strong equity ratio reflects financial stability, providing Shikibo with resilience against economic fluctuations and capacity for future investments.

Cash Generation Ability

Positive operating cash flow suggests Shikibo's ability to generate sufficient cash from its core operations, supporting ongoing business activities and growth.

Negative Factors

Profitability Margins

Low profitability margins may limit Shikibo's ability to reinvest in growth and innovation, potentially affecting long-term competitive positioning.

Free Cash Flow Decline

Declining free cash flow could constrain Shikibo's ability to fund new projects and manage debt, impacting future financial flexibility.

Low Return on Equity

A low return on equity indicates that Shikibo may not be effectively utilizing its equity base to generate profits, potentially hindering shareholder value creation.

Shikibo Ltd. Business Overview & Revenue Model

Company Description

Shikibo Ltd. (3109) is a prominent player in the textile industry, specializing in the production and distribution of high-quality textile products. The company operates primarily within the textile manufacturing sector, focusing on the development of various fabrics used in apparel, home textiles, and industrial applications. With a strong emphasis on innovation and sustainability, Shikibo Ltd. is committed to providing eco-friendly textile solutions while maintaining high standards of quality and design.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Positive
• Last Price: 989.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 989 is below the 20-day moving average (MA) of 1022.35, below the 50-day MA of 1007.00, and above the 200-day MA of 973.98, indicating a bullish trend. The MACD of 9.30 indicates Negative momentum. The RSI at 56.75 is Neutral, neither overbought nor oversold. The STOCH value of 63.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3109.

Shikibo Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3104	78 Outperform	¥82.31B	16.43	―	1.88%	10.76%	54.82%
3109	72 Outperform	¥12.77B	13.73	―	4.89%	4.49%	26.84%
3201	72 Outperform	¥103.64B	14.41	―	2.60%	7.56%	-17.12%
3501	68 Neutral	¥17.41B	13.94	―	3.39%	1.50%	241.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8107	40 Underperform	¥10.75B	-163.23	―	―	90.06%	-98.03%

Shikibo Ltd. Corporate Events

Shikibo Ltd. Reports Q1 2025 Financial Results with Mixed Performance

Shikibo Ltd. reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 2.1% year-on-year to ¥9,486 million. However, there was a decline in operating profit by 2.8% and a decrease in profit attributable to owners of the parent by 9.1%. The company’s financial position remains stable with a capital adequacy ratio of 41.1%. The forecast for the fiscal year ending March 31, 2026, anticipates a 4.9% increase in net sales, but a decrease in profit attributable to owners of the parent by 23.4%, indicating potential challenges in profitability.