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

• Market Cap: ¥93.94B
• Dividend Yield: 332.56%
• Average Volume (3M): 161.70K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.60
• Revenue Growth: 5.77%
• EPS Growth: 11.61%
• Country: JP
• Employees: 4,499
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Apparel - Manufacturers
• EPS (TTM): 23.87
• Shares Outstanding: 76,278,854
• 10 Day Avg. Volume: 82,030
• 30 Day Avg. Volume: 161,700
• PEG Ratio: 0.49
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.71
• 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

• Rating: 74 Outperform
• Price Target: ¥1,588.00 ▲(9.07%Upside)

The overall stock score reflects a strong financial performance and attractive valuation. The company's solid financial profile and appealing valuation metrics are offset by mixed technical analysis indicators, leading to a moderate overall score.

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

Company Description

Japan Wool Textile Co., Ltd. (3201), also known as NIKKE, is a diversified Japanese company engaged in the production and sale of textiles, textiles-related products, and industrial materials. Established in 1896, the company operates across various sectors, including fashion apparel, interior products, and industrial materials, with a focus on high-quality wool and synthetic textiles. NIKKE is renowned for its advanced textile technologies and innovation in developing functional and sustainable materials.

How the Company Makes Money

Japan Wool Textile Co., Ltd. generates revenue primarily through the manufacturing and sale of its textile products. The company's key revenue streams include the production of woolen fabrics, synthetic textiles, and industrial materials used in various applications such as apparel, interior furnishings, and industrial products. NIKKE's strong emphasis on research and development enables it to create innovative and high-value products that meet the evolving demands of different industries. Additionally, strategic partnerships and collaborations with other firms enhance its product offerings and distribution capabilities, further contributing to its earnings. The company's diverse portfolio and global presence also play a significant role in its revenue generation.

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. The income statement shows consistent revenue growth and improved net profit margins, although gross margins have slightly declined. The balance sheet is solid, with low leverage and strong equity, while the cash flow statement indicates healthy cash generation despite some fluctuations.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	112.56B	115.44B	113.50B	109.05B	106.62B	104.92B
Gross Profit	33.11B	33.01B	34.00B	32.81B	31.29B	30.04B
EBITDA	14.68B	15.66B	15.70B	14.93B	13.97B	13.20B
Net Income	8.00B	8.97B	7.64B	7.28B	8.31B	7.12B
Balance Sheet
Total Assets	173.71B	179.94B	166.13B	163.38B	163.63B	147.17B
Cash, Cash Equivalents and Short-Term Investments	38.98B	33.45B	36.35B	37.50B	41.16B	30.25B
Total Debt	16.46B	13.10B	14.67B	19.28B	21.08B	20.77B
Total Liabilities	54.17B	56.21B	51.99B	55.65B	59.02B	51.46B
Stockholders Equity	118.53B	122.80B	113.15B	106.63B	102.94B	93.92B
Cash Flow
Free Cash Flow	4.24B	10.16B	5.88B	5.14B	12.40B	11.25B
Operating Cash Flow	4.24B	10.16B	8.99B	9.45B	12.40B	11.31B
Investing Cash Flow	0.00	-7.86B	990.00M	-6.88B	-2.09B	-6.22B
Financing Cash Flow	0.00	-4.21B	-9.77B	-9.50B	-1.48B	-359.00M

Japan Wool Textile Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1456.00
• 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:3201, the sentiment is Positive. The current price of 1456 is above the 20-day moving average (MA) of 1427.35, above the 50-day MA of 1440.11, and above the 200-day MA of 1341.63, indicating a bullish trend. The MACD of -1.60 indicates Negative momentum. The RSI at 57.00 is Neutral, neither overbought nor oversold. The STOCH value of 85.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	77 Outperform	$124.90B	9.61	10.24%	3.26%	12.50%	7.68%
3201	74 Outperform	¥93.94B	11.60		332.56%	5.77%	11.61%
2685	72 Outperform	€132.53B	14.13	12.99%	3.75%	5.50%	-30.13%
8016	69 Neutral	€80.56B	9.47	10.13%	4.38%	9.90%	28.80%
3002	68 Neutral	¥117.82B	19.03	5.24%	2.17%	3.18%	26.10%
Sector *	67 Neutral	¥251.03B	13.17	6.57%	2.80%	5.06%	-11.36%
3608	66 Neutral	$77.19B	5.35	14.52%	5.71%	0.79%	262.44%

Japan Wool Textile Co., Ltd. Corporate Events

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.

Japan Wool Textile Co., Ltd. Reports Increased Sales but Decline in Profit

Japan Wool Textile Co., Ltd. reported a 15.5% increase in net sales for the three months ending February 28, 2025, compared to the previous year. Despite this growth, the profit attributable to owners of the parent decreased by 9%. The company maintains a strong capital adequacy ratio of 68.8% and forecasts a 10.9% increase in net sales for the fiscal year ending November 30, 2025. The dividend forecast for the year also sees a slight increase, reflecting the company’s stable financial position.