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

• Market Cap: ¥114.32B
• Dividend Yield: 2.66%
• Average Volume (3M): 92.96K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.68
• Revenue Growth: 7.56%
• EPS Growth: -17.12%
• Country: JP
• Employees: 4,499
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 51.78
• Shares Outstanding: 74,278,854
• 10 Day Avg. Volume: 95,880
• 30 Day Avg. Volume: 92,956
• PEG Ratio: 8.11
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 23.98
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,268.00 ▲(27.77% Upside)

The score is driven primarily by solid underlying financial stability (low leverage and steady margins), supported by a strong upward technical trend. Offsetting factors are inconsistent cash flow conversion and very overbought momentum signals that increase near-term volatility risk; valuation is reasonable but not a major catalyst.

Positive Factors

Conservative balance sheet

Low leverage and steadily growing equity give the company durable financial flexibility. This conservative positioning reduces refinancing and solvency risk, supports capital spending or R&D during downturns, and enables opportunistic investments without stressing cash flows.

Consistent operating margins

Sustained mid-single-digit to low-double-digit margins reflect stable manufacturing efficiency and pricing in premium wool products. Persistent margins support cash generation, allow steady reinvestment and dividends, and indicate resilient core economics versus cyclical apparel peers.

Premium product mix & partnerships

Focus on premium wool, designer partnerships and export channels builds durable brand differentiation and diversified demand. These structural advantages support pricing power, customer stickiness, and access to higher-margin niches versus commodity textile producers.

Negative Factors

Weakened free cash flow conversion

A declining and volatile conversion rate means reported profits are translating into less reliable cash, constraining sustained capex, dividends, or debt paydown. Longer-term, this raises execution risk if working capital or capex needs rise unexpectedly.

Modest recent revenue decline

A tangible revenue dip signals potential demand pressure or pricing softness in core markets. For a manufacturer reliant on volume and long-term contracts, continued top-line weakness would hinder scale benefits, limit margin expansion and cap growth investments.

Limited margin expansion & mixed growth momentum

Steady but stagnant margins and uneven growth constrain upside to returns on equity and shareholder value. Without structural margin improvement or clearer revenue acceleration, the company may struggle to materially improve profitability or fund growth initiatives over the medium term.

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

Company Description

The Japan Wool Textile Co., Ltd. operates in the textile industry in Japan. It operates through four business lines: Textile & Clothing Materials, Industrial Machinery & Materials, Human & Future Development, and Consumer Goods & Services. The Textile & Clothing Materials business manufactures and sells knitting wool for fabric/knitting, uniform-related materials and products, and men's and women's fashion materials. The Industrial Machinery & Materials business is involved in the development, manufacture, and sale of various materials, including wool, chemical synthetic fibers, and threads through twine/felt/non-woven fabrics. It also designs, manufactures, and sells industrial machinery; and designs, installs, and maintains environmental/energy systems. The Human & Future Development business provides daycare, childcare/after-school care, small group home care, welfare equipment rental and sales, and house renovations services, as well as engages in the commercial facility operation, Children's amusement facility, ice cream, video rental, snack sales, and cellular phone businesses. It also operates tennis schools, golf courses, driving ranges, and equestrian clubs, as well as Karaoke and bowling alleys; rental of office buildings; provision of rental office management services; and sale of residential land and construction of houses. The Consumer Goods & Services business provides ballroom dance attires, office and industrial use inks, clothing, horse gear and other equestrian products, and stamps and stamp-related products and services; and insurance agency and logistics services, as well as offers beds and bedding, furniture, and other related goods online. The company was incorporated in 1896 and is headquartered in Osaka, Japan.

How the Company Makes Money

Japan Wool Textile Co., Ltd. generates revenue primarily through the sale of woolen fabrics and yarns to clothing manufacturers, retailers, and other industries requiring textile products. Key revenue streams include direct sales, bulk orders, and custom textile solutions tailored to clients' specifications. The company also benefits from strategic partnerships with fashion brands and designers, enabling it to create exclusive collections that further enhance its market presence. Additionally, Japan Wool Textile Co., Ltd. may engage in exporting its products internationally, tapping into global markets that seek high-quality Japanese wool textiles, thereby diversifying its income sources.

Japan Wool Textile Co., Ltd. Financial Statement Overview

Summary

Financials are stable overall: solid and steady profitability (operating margin ~10–11%, net margin ~6.7–7.8%) and a conservatively positioned balance sheet with low leverage (debt ~0.11x equity). Offsets include a modest latest-year revenue decline (~-2%) and weaker/volatile free cash flow conversion versus net income recently (~42% latest year).

Income Statement

Revenue has been broadly stable-to-up over the last several years, but the most recent annual period shows a modest decline (about -2.0%), signaling some near-term demand or pricing pressure. Profitability is solid for the industry: gross margin has held in the high-20% to ~30% range, while operating profitability has been steady around ~10–11% and net margin around ~6.7–7.8%. Net income has been resilient with gradual improvement versus earlier periods, though margins have not meaningfully expanded and growth momentum is mixed.

Balance Sheet

The balance sheet looks conservatively positioned with low leverage: debt is roughly 0.11x equity in the latest year and has trended lower versus earlier periods (~0.22x in 2020). Equity has grown steadily, supporting asset growth and providing financial flexibility. Returns on equity are consistent in the ~6.8–8.1% range—respectable but not high—suggesting the company is stable and well-capitalized, though not generating standout shareholder returns.

Cash Flow

Operating cash flow is positive and improved in the latest year, and free cash flow remains positive; however, free cash flow conversion vs. net income has weakened recently (roughly ~42% in the latest year versus ~65% in 2023 and ~100% in 2020–2021). Free cash flow has also been somewhat volatile year-to-year (including notable declines in 2022 and 2024), which reduces confidence in consistency. Overall cash generation is healthy, but the quality/consistency of conversion is the key watch item.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	121.87B	119.38B	115.44B	113.50B	109.05B	106.62B
Gross Profit	33.94B	34.25B	33.01B	34.00B	32.81B	31.29B
EBITDA	15.34B	17.81B	15.66B	15.70B	14.93B	15.18B
Net Income	7.82B	9.09B	8.97B	7.64B	7.28B	8.31B
Balance Sheet
Total Assets	183.12B	189.76B	179.94B	166.13B	163.38B	163.63B
Cash, Cash Equivalents and Short-Term Investments	35.83B	31.32B	33.45B	36.35B	37.50B	41.16B
Total Debt	13.90B	14.24B	13.10B	14.67B	19.28B	21.08B
Total Liabilities	54.17B	57.60B	56.21B	51.99B	55.65B	59.02B
Stockholders Equity	128.40B	131.65B	122.80B	113.15B	106.63B	102.94B
Cash Flow
Free Cash Flow	0.00	5.13B	5.04B	5.88B	5.14B	12.40B
Operating Cash Flow	0.00	12.14B	10.16B	8.99B	9.45B	12.40B
Investing Cash Flow	0.00	-9.26B	-7.86B	990.00M	-6.88B	-2.09B
Financing Cash Flow	0.00	-5.07B	-4.21B	-9.77B	-9.50B	-1.48B

Japan Wool Textile Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1775.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 1775 is below the 20-day moving average (MA) of 1879.30, below the 50-day MA of 1808.44, and above the 200-day MA of 1569.55, indicating a neutral trend. The MACD of 25.04 indicates Positive momentum. The RSI at 50.78 is Neutral, neither overbought nor oversold. The STOCH value of 13.59 is Positive, 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	75 Outperform	¥169.54B	12.26	10.24%	2.43%	6.08%	8.55%
3201	74 Outperform	¥114.32B	14.07	―	2.66%	7.56%	-17.12%
3608	68 Neutral	¥50.08B	3.93	17.77%	6.12%	-6.22%	679.61%
3002	66 Neutral	¥146.54B	55.56	2.34%	3.38%	>-0.01%	-49.83%
2685	64 Neutral	¥125.83B	13.85	11.28%	3.59%	3.96%	-36.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Japan Wool Textile Co., Ltd. Corporate Events

NIKKE Launches ¥4 Billion Share Buyback to Boost Capital Efficiency and Shareholder Returns

NIKKE has approved a new share buyback program as part of its RN130 Third Medium-Term Management Plan (2024–2026), aiming to enhance overall shareholder returns, improve capital efficiency, and maximize corporate and shareholder value. The company plans to repurchase up to 2 million shares of its common stock, representing up to 2.98% of its outstanding shares excluding treasury stock, for a maximum total of ¥4 billion through market purchases, including ToSTNeT-3 transactions, between January 15 and May 22, 2026, building on an already substantial base of treasury shares and signaling continued commitment to shareholder-focused capital allocation.

The most recent analyst rating on (JP:3201) stock is a Buy with a Yen2102.00 price target. To see the full list of analyst forecasts on Japan Wool Textile Co., Ltd. stock, see the JP:3201 Stock Forecast page.

Japan Wool Textile Marks Fifth Straight Year of Revenue and Profit Growth With Record Earnings

Japan Wool Textile Co., Ltd. reported consolidated net sales of 119.37 billion yen for fiscal 2025, a 3.4% year-on-year increase, with operating profit up 2.3% to 11.91 billion yen, ordinary profit rising 7.2% to 12.96 billion yen, and profit attributable to owners of parent edging up 1.3% to 90.90 billion yen. Net sales and operating profit grew for the fifth consecutive year and all profit metrics at and below operating profit reached record highs, underscoring the company’s steady earnings momentum, though a slight decline in ROE to 7.1% suggests some moderation in capital efficiency even as its profitability and industry standing continue to strengthen.

The most recent analyst rating on (JP:3201) stock is a Buy with a Yen2102.00 price target. To see the full list of analyst forecasts on Japan Wool Textile Co., Ltd. stock, see the JP:3201 Stock Forecast page.

Japan Wool Textile Co. Announces Treasury Stock Cancellation

Japan Wool Textile Co., Ltd. announced a resolution to cancel 2,000,000 shares of its treasury stock, which accounts for 2.62% of its total issued shares before cancellation. This strategic move, scheduled for completion on November 28, 2025, is likely aimed at optimizing the company’s capital structure and enhancing shareholder value.

The most recent analyst rating on (JP:3201) stock is a Buy with a Yen1800.00 price target. To see the full list of analyst forecasts on Japan Wool Textile Co., Ltd. stock, see the JP:3201 Stock Forecast page.

Japan Wool Textile Co. Increases Dividend Forecast for FY2025

Japan Wool Textile Co., Ltd. has announced a revision to its dividend forecast, increasing the year-end dividend per share from 25 yen to 30 yen for the fiscal year ending November 2025. This decision aligns with the company’s RN130 3rd Medium-Term Management Plan, which emphasizes shareholder returns and aims to gradually increase the dividend payout ratio. The company is committed to enhancing corporate value and balancing growth investment with shareholder returns.

The most recent analyst rating on (JP:3201) stock is a Buy with a Yen1800.00 price target. To see the full list of analyst forecasts on Japan Wool Textile Co., Ltd. stock, see the JP:3201 Stock Forecast page.