Shikibo Ltd. (3109) AI Stock Analysis

• Market Cap: ¥14.22B
• Dividend Yield: 4.8%
• Average Volume (3M): 45.87K
• Price to Earnings (P/E): 10.0
• 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: ¥1,273.00 ▲(28.72% 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

Consistent Revenue Growth

Shikibo's multi-year revenue growth (1.05% year-over-year to 2025 and described as consistent) supports scale and market penetration in apparel manufacturing. Durable top-line expansion helps absorb fixed costs, sustain supplier relationships, and underpins long-term investment in products and processes.

Solid Balance Sheet

A healthy equity ratio (41.13%) and manageable leverage (D/E 0.76) provide financial flexibility for cycle resilience, capex, and strategic investments. This capital structure reduces refinancing pressure and preserves capacity for M&A or product investment without jeopardizing solvency over a multi-month horizon.

Strong Cash Conversion

Operating cash flow generation and a 2.31 OCF-to-net-income ratio show the business converts accounting profits into cash efficiently. Reliable operational cash flows support working capital, dividend funding and recurring operations, cushioning the company versus short-term earnings volatility.

Negative Factors

Low Net Profitability

A net margin of 2.34% indicates limited per-unit profitability and constrained ability to reinvest earnings. Persistently thin margins reduce retained earnings, limit buffers against cost shocks, and make funding growth or innovation more dependent on external financing over the coming months.

Declining Free Cash Flow

Negative free cash flow in 2025 signals that capital expenditures or working capital demands outpaced operating cash generation. If sustained, this trend can force reliance on debt or equity funding, constrain dividends or capex, and elevate execution risk on strategic initiatives.

Low Return on Equity

An ROE of 2.60% reflects limited efficiency in turning equity into profits. Over time, low ROE can signal weak competitive returns on invested capital, making it harder to justify reinvestment and potentially leading to slower equity growth versus peers in the apparel manufacturing sector.

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	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: Positive
• Last Price: 989.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1126.10, below the 50-day MA of 1090.26, and below the 200-day MA of 1011.78, indicating a bullish trend. The MACD of 17.34 indicates Negative momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 81.74 is Negative, 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
3569	78 Outperform	¥196.10B	13.54	10.24%	2.43%	6.08%	8.55%
3110	75 Outperform	¥914.94B	23.81	11.10%	0.99%	9.49%	55.64%
3104	75 Outperform	¥120.03B	24.35	―	1.79%	10.76%	54.82%
3109	72 Outperform	¥14.22B	9.97	―	4.80%	4.49%	26.84%
3002	66 Neutral	¥154.04B	48.89	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	¥1.97T	47.60	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.