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

• Market Cap: ¥89.18B
• Dividend Yield: 2.42%
• Average Volume (3M): 155.23K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.58
• Revenue Growth: 5.77%
• EPS Growth: 11.61%
• Country: JP
• Employees: 4,499
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Apparel - Manufacturers
• EPS (TTM): 23.87
• Shares Outstanding: 76,278,854
• 10 Day Avg. Volume: 231,750
• 30 Day Avg. Volume: 155,233
• 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: 71 Outperform
• Price Target: ―

Japan Wool Textile Co., Ltd. displays strong financial performance with robust revenue growth and profitability, alongside a solid balance sheet with low leverage. Despite some short-term technical weaknesses, the company's valuation remains fair with a reasonable P/E ratio and moderate dividend yield. The absence of earnings call data and corporate events limits further analysis. Overall, the company is well-positioned financially, although short-term technical indicators suggest caution.

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 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
	EBIT
11.04B	11.64B	11.02B	10.71B	9.90B	12.57B
	EBITDA
14.68B	15.66B	15.70B	14.93B	13.97B	13.20B
	Net Income Common Stockholders
8.00B	8.97B	7.64B	7.28B	8.31B	7.12B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.98B	33.45B	36.35B	37.50B	41.16B	30.25B
	Total Assets
173.71B	179.94B	166.13B	163.38B	163.63B	147.17B
	Total Debt
16.46B	13.10B	14.67B	19.28B	21.08B	20.77B
	Net Debt
-21.49B	-19.35B	-19.68B	-15.22B	-20.07B	-9.48B
	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: Neutral
• Last Price: 1406.00
• 50DMA: Negative
• 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 Neutral. The current price of 1406 is below the 20-day moving average (MA) of 1449.42, below the 50-day MA of 1436.88, and above the 200-day MA of 1332.23, indicating a neutral trend. The MACD of -4.22 indicates Positive momentum. The RSI at 40.74 is Neutral, neither overbought nor oversold. The STOCH value of 3.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3201	71 Outperform	¥89.18B	11.01		2.42%	5.77%	11.61%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
GUN		€713.38M	18.98	5.24%	4.09%	―	―
SERNF		$913.88M	11.14	10.24%	0.02%	―	―
TSIHF		$511.32M	5.44	14.52%	1.67%	―	―
OWK		€469.44M	8.93	10.13%	4.74%	―	―
1E0		€788.52M	13.41	12.59%	3.23%	―	―

Japan Wool Textile Co., Ltd. Corporate Events

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.