Nitto Boseki Co (3110) AI Stock Analysis

• Market Cap: ¥475.49B
• Dividend Yield: 0.99%
• Average Volume (3M): 918.15K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 1.41
• Revenue Growth: 9.49%
• EPS Growth: 55.64%
• Country: JP
• Employees: 2,690
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 102.48
• 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: ¥10,699.18
• Price Target Upside: -18.08% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥13,127.00 ▲(0.51% Upside)

The score is driven primarily by strong financial performance (growth and margins, with improving cash generation) and supportive trend signals from moving averages. This is tempered by mixed momentum indicators (negative MACD) and a less attractive valuation (high P/E and low dividend yield).

Positive Factors

Revenue Growth

Sustained top-line expansion near 17% year-over-year indicates durable demand for Nitto Boseki’s specialty textiles and materials. Over 2-6 months this supports investment in capacity and R&D, enabling continued scale benefits and stronger negotiating power with industrial customers.

Robust Profitability Margins

Healthy gross and net margins reflect differentiated, higher-value product mix and operational efficiency. Margin durability supports reinvestment in advanced materials R&D and provides a buffer through industry cycles, underpinning steady long-term cash generation potential.

Conservative Balance Sheet

A moderate leverage profile and strong equity financing give the company financial flexibility for capex or M&A. Over several months this reduces refinancing risk, supports strategic investments in new materials, and preserves capital structure resilience during downturns.

Negative Factors

Free Cash Flow Conversion Weakness

While free cash flow turned positive, weak conversion versus net income signals potential working capital or capex absorption issues. Persisting conversion shortfalls can constrain dividends, deleveraging, or reinvestment capacity, limiting strategic flexibility over the medium term.

Debt Level Requires Monitoring

Although leverage is manageable, the noted need to monitor debt suggests sensitivity to higher interest rates or cyclical cash flow swings. If cash generation falters, servicing debt could pressure margins or force deferred investment, affecting long-term competitiveness.

Cyclical End-Market Exposure

Significant exposure to automotive and construction end markets creates demand cyclicality risk. Over a multi-month horizon, downturns in these sectors can materially reduce order volumes and utilization, pressuring margins and extending payback on capacity investments.

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

Nitto Boseki Co demonstrates strong financial performance with significant revenue growth and improved profitability margins. The balance sheet is stable with a manageable debt-to-equity ratio, though debt levels require monitoring. Cash flow has improved, but further enhancement of free cash flow metrics is advisable.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 13060.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 13060 is above the 20-day moving average (MA) of 10973.00, above the 50-day MA of 11710.60, and above the 200-day MA of 7153.05, indicating a bullish trend. The MACD of 329.73 indicates Negative momentum. The RSI at 70.43 is Negative, neither overbought nor oversold. The STOCH value of 89.53 is Negative, 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	75 Outperform	¥164.98B	11.93	10.24%	2.43%	6.08%	8.55%
3201	72 Outperform	¥114.57B	16.45	―	2.66%	7.56%	-17.12%
3110	71 Outperform	¥475.49B	33.24	11.10%	0.99%	9.49%	55.64%
3002	66 Neutral	¥150.29B	56.98	2.34%	3.38%	>-0.01%	-49.83%
3402	65 Neutral	¥1.67T	29.64	3.37%	1.85%	-2.18%	26.45%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3591	53 Neutral	¥236.25B	22.06	5.31%	2.29%	-6.04%	146.54%

Nitto Boseki Co Corporate Events

Nittobo Revises Year-End Dividend Forecast for FY 2026

Nittobo has announced a revision to its year-end dividend forecast for the fiscal year ending March 31, 2026. The revised forecast sets the fiscal year-end dividend at 86.50 yen, leading to a total annual dividend of 114.00 yen, up from the previous year’s total of 106.00 yen. This decision aligns with the company’s medium-term management plan, which targets a dividend of not less than 55 yen per share and a payout ratio of 30% of steady earnings, excluding extraordinary income from asset sales.

The most recent analyst rating on (JP:3110) stock is a Buy with a Yen9054.00 price target. To see the full list of analyst forecasts on Nitto Boseki Co stock, see the JP:3110 Stock Forecast page.

Nittobo Announces Strategic Asset Transfer and Earnings Forecast Revision

Nittobo has announced a significant financial maneuver involving the transfer of non-current assets, resulting in an extraordinary income gain of approximately 34.1 billion yen. This strategic decision is part of the company’s efforts to improve asset efficiency and optimize management resources, with the revised earnings forecast reflecting the anticipated financial impact of this transaction.

The most recent analyst rating on (JP:3110) stock is a Buy with a Yen9054.00 price target. To see the full list of analyst forecasts on Nitto Boseki Co stock, see the JP:3110 Stock Forecast page.

Nitto Boseki Co. Reports Strong Financial Performance and Upward Forecast Revisions

Nitto Boseki Co. reported a significant increase in its financial performance for the first six months of the fiscal year ending March 31, 2026, with net sales rising by 8.2% and operating profit increasing by 28.7% compared to the previous year. The company has revised its earnings forecasts upwards, indicating a positive outlook for the full fiscal year, which reflects its strong market positioning and operational efficiency.

The most recent analyst rating on (JP:3110) stock is a Buy with a Yen9054.00 price target. To see the full list of analyst forecasts on Nitto Boseki Co stock, see the JP:3110 Stock Forecast page.