Japan Wool Textile Co., Ltd. (3201) AI Stock Analysis

• Market Cap: ¥87.60B
• Dividend Yield: 2.97%
• Average Volume (3M): 89.11K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.60
• Revenue Growth: 7.01%
• EPS Growth: 11.28%
• Country: JP
• Employees: 4,499
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Manufacturers
• EPS (TTM): 27.50
• Shares Outstanding: 76,278,854
• 10 Day Avg. Volume: 100,480
• 30 Day Avg. Volume: 89,106
• PEG Ratio: -5.91
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.42
• 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: ¥1,519.00
• Price Target Upside: 10.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥1,579.00 ▲(14.84%Upside)

Japan Wool Textile Co., Ltd. demonstrates strong financial performance with robust revenue growth and a solid balance sheet, leading to a high score in financial performance. The valuation is attractive due to a reasonable P/E ratio and decent dividend yield, further enhancing the stock's appeal. Technical indicators present a mixed picture, with some bearish signals. Overall, the stock is well-positioned financially and offers value, though technical trends suggest caution.

Japan Wool Textile Co., Ltd. Business Overview & Revenue Model

Company Description

Japan Wool Textile Co., Ltd. (3201), commonly known as Nikke, is a diversified Japanese company primarily engaged in the production and sale of textile products. The company operates through various segments, including textiles, industrial products, and lifestyle businesses. Its core offerings include woolen and worsted fabrics, synthetic fibers, and textile-related goods. Additionally, Nikke is involved in the development and distribution of industrial materials and real estate, showcasing a well-rounded portfolio that caters to both domestic and international markets.

How the Company Makes Money

Japan Wool Textile Co., Ltd. generates revenue through multiple streams that reflect its business diversification. The primary source of income is the manufacturing and sale of textile products, such as woolen and synthetic fabrics, to various clients ranging from fashion brands to industrial users. Another significant revenue stream comes from its industrial products segment, which includes the production and sale of materials used in sectors like automotive and construction. The company also benefits from its lifestyle business, which encompasses real estate development and management, contributing to its financial stability. Strategic partnerships and collaborations with other companies enhance its product offerings and market reach, thereby boosting sales and profitability.

Japan Wool Textile Co., Ltd. Financial Statement Overview

Summary

Japan Wool Textile Co., Ltd. presents a strong financial profile with robust revenue growth and profitability. While gross margins have slightly declined, net profit margins have improved. The balance sheet is solid with low leverage and strong equity, and the cash flow statement indicates healthy cash generation despite some fluctuations. Overall, the company is financially stable with efficient operations and prudent financial management, positioning it well for future growth.

Income Statement

Japan Wool Textile Co., Ltd. demonstrates a stable financial performance with consistent revenue growth over the years. The gross profit margin shows a slight decline to 28.6% in 2024 from 30.0% in 2023, indicating pressure on profitability. The net profit margin improved to 7.8% in 2024, reflecting efficient cost management. EBIT and EBITDA margins remain strong at 10.1% and 13.6%, respectively, showcasing effective operational control. Overall, the income statement indicates a strong position, although slight caution is warranted for declining gross margins.

Balance Sheet

The company maintains a solid balance sheet with an increasing equity base, reaching JPY 122.8 billion in 2024. The debt-to-equity ratio is low at 0.11, indicating strong financial health and low leverage risk. The equity ratio is substantial at 68.3%, reflecting a robust capital structure. The return on equity is commendable at 7.3%, showcasing efficient utilization of shareholder equity. Overall, the balance sheet is strong, with minimal financial risk and a solid equity position.

Cash Flow

The cash flow statement shows a robust free cash flow of JPY 10.2 billion in 2024, indicating healthy cash generation. The operating cash flow to net income ratio stands at 1.13, suggesting strong cash earnings quality. The free cash flow to net income ratio is also favorable at 1.13, highlighting effective cash flow management. However, the free cash flow growth rate was 72.9%, indicating variability in cash flow generation. The cash flow metrics are positive overall, with some fluctuations in free cash flow growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	115.44B	113.50B	109.05B	106.62B	104.92B
Gross Profit	33.01B	34.00B	32.81B	31.29B	30.04B
EBITDA	15.66B	15.70B	14.93B	13.97B	13.20B
Net Income	8.97B	7.64B	7.28B	8.31B	7.12B
Balance Sheet
Total Assets	179.94B	166.13B	163.38B	163.63B	147.17B
Cash, Cash Equivalents and Short-Term Investments	33.45B	36.35B	37.50B	41.16B	30.25B
Total Debt	13.10B	14.67B	19.28B	21.08B	20.77B
Total Liabilities	56.21B	51.99B	55.65B	59.02B	51.46B
Stockholders Equity	122.80B	113.15B	106.63B	102.94B	93.92B
Cash Flow
Free Cash Flow	10.16B	5.88B	5.14B	12.40B	11.25B
Operating Cash Flow	10.16B	8.99B	9.45B	12.40B	11.31B
Investing Cash Flow	-7.86B	990.00M	-6.88B	-2.09B	-6.22B
Financing Cash Flow	-4.21B	-9.77B	-9.50B	-1.48B	-359.00M

Japan Wool Textile Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1375.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3201, the sentiment is Negative. The current price of 1375 is below the 20-day moving average (MA) of 1445.40, below the 50-day MA of 1443.82, and above the 200-day MA of 1354.58, indicating a neutral trend. The MACD of -12.13 indicates Positive momentum. The RSI at 35.32 is Neutral, neither overbought nor oversold. The STOCH value of 5.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3201.

Japan Wool Textile Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3569	75 Outperform	¥130.05B	10.01	10.24%	2.81%	12.50%	7.68%
3201	75 Outperform	¥87.60B	10.78		2.97%	7.01%	11.28%
3608	74 Outperform	¥77.26B	4.68	16.23%	5.78%	-1.54%	446.34%
2685	73 Outperform	€131.72B	14.05	12.99%	3.04%	5.50%	-30.13%
8016	69 Neutral	¥81.78B	9.34	10.87%	4.31%	13.65%	20.39%
3002	68 Neutral	¥118.96B	19.22	5.24%	2.15%	3.18%	26.10%
Sector *	67 Neutral	¥267.20B	13.40	6.45%	2.59%	5.22%	-11.90%

Japan Wool Textile Co., Ltd. Corporate Events

Japan Wool Textile Co., Ltd. Reports Increased Sales but Declining Profits

Japan Wool Textile Co., Ltd. reported a 9.3% increase in net sales for the six months ending May 31, 2025, compared to the previous year. Despite the rise in sales, the profit attributable to owners of the parent decreased by 3.6%. The company has revised its financial forecast for the fiscal year ending November 30, 2025, expecting a 5.4% increase in net sales but a 10.8% decrease in profit attributable to owners. The dividend forecast remains unchanged, indicating stable shareholder returns despite the anticipated profit decline.

NIKKE Reports No Acquisition of Treasury Stock in June 2025

NIKKE announced the status of its treasury stock acquisition, revealing that no shares were acquired during the specified period from June 2, 2025, to June 30, 2025, despite a resolution allowing for the purchase of up to 2,000,000 shares. This decision reflects the company’s strategic approach to managing its equity and financial resources, potentially impacting shareholder value and market perception.