Kitanihon Spinning Co., Ltd. (3409) AI Stock Analysis

• Market Cap: ¥3.98B
• Dividend Yield: N/A
• Average Volume (3M): 173.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: 16.33%
• EPS Growth: 75.48%
• Country: JP
• Employees: 81
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.60
• Shares Outstanding: 27,681,494
• 10 Day Avg. Volume: 115,140
• 30 Day Avg. Volume: 173,460
• PEG Ratio: 1.10
• Price to Book (P/B): 2.92
• Price to Sales (P/S): 2.13
• P/FCF Ratio: -84.68
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ¥136.00 ▲(3.03% Upside)

Kitanihon Spinning Co., Ltd. faces significant financial challenges, with negative profitability and cash flow issues being the most impactful factors. Technical indicators show weak market momentum, and the valuation metrics are unattractive, leading to a low overall stock score.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand and effective market strategies, which can support long-term business expansion and competitiveness.

Leverage Improvement

Improved leverage suggests better financial management, reducing risk and enhancing the company's ability to invest in growth opportunities.

Sustainability Focus

Commitment to sustainability can enhance brand reputation and open new market segments, supporting long-term revenue and customer loyalty.

Negative Factors

Profitability Issues

Ongoing profitability challenges can hinder reinvestment in business operations and limit financial flexibility, impacting long-term growth.

Cash Flow Concerns

Negative cash flows can strain operations and limit the company's ability to fund new projects or manage unexpected expenses, posing long-term risks.

Low Profit Margins

Persistently low profit margins indicate challenges in cost management, which can affect the company's ability to compete and sustain profitability.

Kitanihon Spinning Co., Ltd. Business Overview & Revenue Model

Company Description

Kitanihon Spinning Co., Ltd. (3409) is a Japanese company primarily engaged in the textile industry, specializing in the production of high-quality yarns and fabrics. The company serves various sectors, including apparel, industrial textiles, and home furnishings, leveraging advanced spinning technologies to deliver innovative textile solutions. Kitanihon Spinning is recognized for its commitment to sustainability and quality, offering a diverse range of products that cater to the evolving needs of its clients in both domestic and international markets.

How the Company Makes Money

Kitanihon Spinning Co., Ltd. generates revenue primarily through the sale of yarns and fabrics to various industries, including fashion, automotive, and home textiles. The company has established key partnerships with clothing manufacturers and retailers, which serve as significant channels for its products. Additionally, Kitanihon Spinning benefits from economies of scale due to its efficient production processes and technological innovations, allowing it to reduce costs and enhance margins. The company may also explore export opportunities, tapping into foreign markets to diversify its revenue streams and mitigate risks associated with domestic fluctuations.

Kitanihon Spinning Co., Ltd. Financial Statement Overview

Summary

Kitanihon Spinning Co., Ltd. is experiencing revenue growth but faces significant challenges in profitability and cash flow management. The improvement in leverage is positive, but negative margins and cash flow issues need addressing for long-term stability.

Income Statement

Kitanihon Spinning Co., Ltd. has shown a significant revenue growth rate of 18.57% in the latest year, indicating a positive trend in sales. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins. The gross profit margin has slightly improved but remains low, reflecting challenges in cost management.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.45, indicating a better leverage position compared to previous years. However, the return on equity remains negative, highlighting ongoing profitability issues. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Kitanihon Spinning Co., Ltd. has a concerning cash flow situation, with negative operating and free cash flows. The free cash flow to net income ratio is high, indicating that cash flow generation is not aligned with earnings. The company needs to improve its cash flow management to support operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.67B	1.63B	1.31B	1.19B	830.45M	615.39M
Gross Profit	250.19M	233.00M	201.59M	95.55M	82.82M	27.70M
EBITDA	-37.35M	-32.00M	-48.69M	-202.01M	-80.58M	-55.38M
Net Income	-73.64M	-55.75M	-115.62M	-271.09M	-128.10M	-61.21M
Balance Sheet
Total Assets	2.22B	2.15B	1.86B	2.07B	2.07B	1.82B
Cash, Cash Equivalents and Short-Term Investments	639.91M	512.00M	216.10M	286.58M	308.63M	480.23M
Total Debt	530.04M	536.00M	545.27M	754.72M	637.47M	597.65M
Total Liabilities	921.71M	966.00M	958.46M	1.11B	989.83M	949.72M
Stockholders Equity	1.30B	1.19B	899.01M	959.93M	1.08B	867.07M
Cash Flow
Free Cash Flow	0.00	-41.00M	-147.73M	-322.61M	-260.19M	-131.41M
Operating Cash Flow	0.00	-7.00M	-97.02M	-91.57M	-160.98M	-101.69M
Investing Cash Flow	0.00	-35.43M	177.29M	-207.07M	-351.40M	135.01M
Financing Cash Flow	0.00	340.00M	-159.58M	274.23M	336.12M	377.24M

Kitanihon Spinning Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 132.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3409, the sentiment is Negative. The current price of 132 is below the 20-day moving average (MA) of 141.40, below the 50-day MA of 158.44, and below the 200-day MA of 178.00, indicating a bearish trend. The MACD of -8.06 indicates Negative momentum. The RSI at 37.69 is Neutral, neither overbought nor oversold. The STOCH value of 36.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3409.

Kitanihon Spinning Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3123	77 Outperform	¥7.38B	9.66	―	2.63%	-4.76%	8.43%
3045	75 Outperform	¥3.03B	8.95	―	3.57%	4.96%	15.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2776	56 Neutral	¥5.87B	-49.31	―	―	348.40%	71.18%
3571	56 Neutral	¥9.80B	34.00	―	5.30%	-1.19%	-87.79%
3409	44 Neutral	¥3.98B	-44.89	―	―	16.33%	75.48%
3111	39 Underperform	¥1.80B	5.70	―	―	-3.03%	46.85%