Nitto Boseki Co (3110) AI Stock Analysis

• Market Cap: ¥914.94B
• Dividend Yield: 0.99%
• Average Volume (3M): 918.15K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.62
• Revenue Growth: 9.49%
• EPS Growth: 55.64%
• Country: JP
• Employees: 2,690
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 775.48
• Shares Outstanding: 37,723,010
• 10 Day Avg. Volume: 726,840
• 30 Day Avg. Volume: 918,150
• PEG Ratio: 0.16
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 1.39
• P/FCF Ratio: 25.31
• 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: ¥17,047.76
• Price Target Upside: -32.16% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1,002.01
• Revenue Forecast (FY): ¥121.04B

• Rating: 75 Outperform
• Price Target: ¥28,654.00 ▲(14.02% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by strong financial performance (growth and margins with improving cash generation) and a powerful technical uptrend. These positives are moderated by a less attractive valuation (P/E 24.76 and low 0.40% dividend yield) and overextended momentum signals (RSI 74.06; Stoch 88.96).

Positive Factors

Revenue Growth & Margins

Sustained double-digit revenue growth paired with healthy gross and net margins signals durable demand and ability to sell higher value-added glass-fiber products. Improved EBIT/EBITDA margins point to structural operating efficiency that supports long-term cash generation and reinvestment capacity.

Balance Sheet Strength

Manageable leverage and a strong equity ratio provide financial flexibility to fund capex, R&D or withstand cyclical downturns. Improving ROE reflects more effective use of shareholder capital, supporting sustainable investment without excessive reliance on external financing.

Improving Cash Generation

The shift to positive free cash flow and OCF materially above net income indicate the company is converting earnings to cash more effectively. This trend enhances the firm’s ability to self-fund growth, service debt and pursue higher-margin product development over the medium term.

Negative Factors

Free Cash Flow Efficiency

Although FCF turned positive, the company’s FCF relative to net income lags, suggesting working-capital swings or capex demands absorb cash. Persistent efficiency gaps could constrain sustainable reinvestment, dividends or debt reduction if not addressed over coming quarters.

End-Market Cyclicality & Input Cost Exposure

Revenue and margins depend on cyclical electronics and industrial demand and are sensitive to raw material and energy price swings. Structural exposure to these cycles can produce recurring volatility in utilization and margins, challenging steady cash flows during downturns.

Debt Level Requires Monitoring

While leverage is within manageable ranges, the report flags debt as an area to watch. If cyclical pressures or cash conversion issues reappear, servicing and refinancing debt could constrain strategic flexibility or force trade-offs between growth and balance-sheet repair.

Nitto Boseki Co Business Overview & Revenue Model

Company Description

Nitto Boseki Co., Ltd. engages in the manufacture, processing, and sale of textile products and textile-related industrial goods, rock wool and building materials, glass fiber products, and specialty chemicals and medical products in Japan. The company offers a range of apparel and other products, including interlinings for women's apparel, stretch fabrics, and functional textiles. It also provides glass fiber products for use in automobiles; composites for smartphone casings; high performance electronic substrates; resin-coated film materials; and house insulation materials. In addition, the company develops reagents for in vitro diagnostics in the biochemistry, hematology, and immunology fields; develops specialty chemicals, such as functional polymers for various applications; and produces and sells PET bottles and soft drinks. Further, it engages in the planning, supervision, and contracting for construction; and design, manufacture, and sale of machinery and equipment. The company was formerly known as Fukusima Seiren Seishi K.K. and changed its name to Nitto Boseki Co., Ltd. in April 1923. Nitto Boseki Co., Ltd. was founded in 1918 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nitto Boseki generates revenue through multiple streams, primarily by selling its specialized textile products and industrial materials to various industries, including automotive, construction, and healthcare. The company capitalizes on its advanced manufacturing capabilities and innovative R&D to create high-performance materials that meet specific customer needs. Key revenue streams include sales of non-woven fabrics, which are used in a range of applications, and its artificial leather products, which are popular in the automotive and fashion industries. Additionally, Nitto Boseki has formed partnerships with other companies to develop and supply customized solutions, enhancing its market reach and profitability. The company also benefits from its strong presence in both domestic and international markets, allowing it to diversify its revenue sources and mitigate risks associated with regional economic fluctuations.

Nitto Boseki Co Financial Statement Overview

Summary

Strong fundamentals supported by 16.91% revenue growth (2024 to 2025) and healthy 2025 profitability (gross margin 37.04%, net margin 11.78%) with improved EBIT/EBITDA margins. Balance sheet is solid with manageable leverage (debt-to-equity 0.41; equity ratio 58.14%) and improving ROE (9.90% in 2025). Cash flow is improving (FCF turned positive in 2025; operating cash flow to net income 1.49), but free cash flow efficiency vs. net income still needs improvement.

Income Statement

Nitto Boseki Co has demonstrated strong revenue growth with a notable increase of 16.91% from 2024 to 2025. The company maintains healthy profitability margins with a gross profit margin of 37.04% and a net profit margin of 11.78% for 2025. The EBIT and EBITDA margins have improved significantly over the years, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.41, which is manageable for the industry. The equity ratio of 58.14% indicates strong equity financing. Return on equity has been improving, reaching 9.90% in 2025, showing effective use of shareholders' equity. However, the relatively high debt level requires monitoring.

Cash Flow

Cash flow analysis shows a significant turnaround with free cash flow moving from negative in 2024 to positive in 2025, reflecting improved cash generation. The operating cash flow to net income ratio of 1.49 indicates robust cash generation relative to net income. However, the free cash flow to net income ratio needs improvement, indicating potential reinvestment challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	111.15B	109.03B	93.25B	87.53B	84.05B	78.73B
Gross Profit	41.55B	40.38B	30.61B	27.21B	28.23B	25.66B
EBITDA	26.19B	26.02B	16.66B	13.12B	15.98B	17.80B
Net Income	12.73B	12.84B	7.30B	2.77B	6.52B	8.10B
Balance Sheet
Total Assets	220.99B	223.10B	212.11B	185.59B	187.29B	184.65B
Cash, Cash Equivalents and Short-Term Investments	26.76B	28.55B	23.66B	21.59B	18.54B	30.32B
Total Debt	52.96B	52.75B	53.14B	46.06B	46.21B	44.16B
Total Liabilities	87.30B	87.27B	88.41B	76.64B	76.65B	80.26B
Stockholders Equity	127.97B	129.73B	118.19B	103.79B	105.82B	99.13B
Cash Flow
Free Cash Flow	0.00	5.98B	-1.89B	470.00M	-10.36B	-6.03B
Operating Cash Flow	0.00	19.12B	5.06B	7.64B	6.96B	7.82B
Investing Cash Flow	0.00	-11.42B	-7.90B	1.98B	-17.30B	-1.87B
Financing Cash Flow	0.00	-3.28B	4.30B	-7.25B	-1.53B	1.86B

Nitto Boseki Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25130.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3110, the sentiment is Positive. The current price of 25130 is above the 20-day moving average (MA) of 20372.50, above the 50-day MA of 15825.60, and above the 200-day MA of 9508.56, indicating a bullish trend. The MACD of 2786.58 indicates Negative momentum. The RSI at 72.47 is Negative, neither overbought nor oversold. The STOCH value of 71.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3110.

Nitto Boseki Co 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%

Nitto Boseki Co Corporate Events

Nittobo Delivers Profit Surge and Raises Full-Year Outlook for FY2026

Nittobo reported solid results for the first nine months of the fiscal year ending March 31, 2026, with net sales rising 7.5% year on year to ¥87.6 billion and operating profit climbing 26.4% to ¥14.9 billion. Ordinary profit increased 15.5% to ¥15.2 billion, while profit attributable to owners of parent surged 272.7% to ¥35.1 billion, driving basic earnings per share up to ¥964.42 and lifting the equity ratio to 60.5% on expanded net assets. The company left its interim dividend at ¥27.50 and now projects full-year net sales of ¥120.0 billion and operating profit of ¥20.0 billion, with profit attributable to owners of parent expected to reach ¥38.0 billion—almost triple the prior year—supporting a planned annual dividend of ¥114 per share, which signals continued earnings momentum and a commitment to enhancing shareholder returns.

The most recent analyst rating on (JP:3110) stock is a Buy with a Yen17000.00 price target. To see the full list of analyst forecasts on Nitto Boseki Co stock, see the JP:3110 Stock Forecast page.