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Shikibo Ltd. (JP:3109)
:3109
Japanese Market
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Shikibo Ltd. (3109) AI Stock Analysis

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JP:3109

Shikibo Ltd.

(3109)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
¥1,059.00
▲(7.08% Upside)
Shikibo Ltd. has a stable financial position with strong revenue growth and a solid balance sheet. However, low profitability margins and declining free cash flow are concerns. The stock's technical indicators suggest a bearish trend, but its valuation is attractive with a fair P/E ratio and high dividend yield.

Shikibo Ltd. (3109) vs. iShares MSCI Japan ETF (EWJ)

Shikibo Ltd. Business Overview & Revenue Model

Company DescriptionShikibo 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 MoneyShikibo 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
65
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue39.28B39.09B38.68B37.89B35.67B33.52B
Gross Profit7.28B7.24B7.08B6.61B6.60B6.33B
EBITDA3.46B3.65B3.40B2.96B2.45B2.14B
Net Income898.00M914.00M800.00M1.57B49.00M9.00M
Balance Sheet
Total Assets84.65B85.61B83.30B82.04B81.60B82.68B
Cash, Cash Equivalents and Short-Term Investments6.35B5.90B5.37B5.00B5.08B6.45B
Total Debt26.53B26.62B25.43B24.77B24.83B28.01B
Total Liabilities49.82B50.37B49.22B48.69B49.79B50.82B
Stockholders Equity34.79B35.21B34.06B33.34B31.81B30.96B
Cash Flow
Free Cash Flow464.00M-835.00M755.00M-59.00M2.42B447.00M
Operating Cash Flow703.00M2.11B3.55B1.11B2.99B2.77B
Investing Cash Flow-272.50M-2.77B-2.70B-682.00M-654.00M-2.34B
Financing Cash Flow-392.50M1.07B-509.00M-579.00M-3.79B-509.00M

Shikibo Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price989.00
Price Trends
50DMA
1000.76
Negative
100DMA
974.59
Positive
200DMA
965.12
Positive
Market Momentum
MACD
-3.10
Positive
RSI
45.68
Neutral
STOCH
46.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3109, the sentiment is Negative. The current price of 989 is below the 20-day moving average (MA) of 996.16, below the 50-day MA of 1000.76, and above the 200-day MA of 965.12, indicating a neutral trend. The MACD of -3.10 indicates Positive momentum. The RSI at 45.68 is Neutral, neither overbought nor oversold. The STOCH value of 46.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3109.

Shikibo Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥73.22B15.332.20%15.29%87.17%
72
Outperform
¥102.50B14.252.58%7.56%-17.12%
68
Neutral
¥16.89B13.532.50%1.50%241.33%
64
Neutral
¥12.30B14.025.05%1.93%-1.93%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
41
Neutral
¥11.01B48.75%-620.85%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3109
Shikibo Ltd.
989.00
25.12
2.61%
JP:3104
Fujibo Holdings, Inc.
6,470.00
1,923.80
42.32%
JP:3201
Japan Wool Textile Co., Ltd.
1,587.00
357.43
29.07%
JP:3501
Suminoe Textile Co., Ltd.
1,205.00
200.29
19.94%
JP:8011
Sanyo Shokai Ltd.
3,320.00
789.52
31.20%
JP:8107
KIMURATAN Corporation
42.00
24.00
133.33%

Shikibo Ltd. Corporate Events

Shikibo Ltd. Reports Financial Results for FY 2025
May 13, 2025

Shikibo Ltd. reported its consolidated financial results for the fiscal year ended March 31, 2025, showing a slight increase in net sales by 1% to ¥39,087 million. However, the company experienced a decrease in operating and ordinary profits by 5.8% and 20.8% respectively, while profit attributable to owners of the parent increased by 14.2% to ¥914 million. 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 profits, indicating potential challenges in maintaining profitability.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 18, 2025