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

• Market Cap: ¥3.95B
• Dividend Yield: N/A
• Average Volume (3M): 173.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.39
• 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: 28,847,494
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: ¥149.00 ▲(23.14% Upside)

The score is held back primarily by weak fundamentals: negative profitability and negative operating/free cash flow despite strong revenue growth. Technicals are supportive in the near term (price above key moving averages and positive MACD) but look overbought (high RSI/Stoch). Valuation is also constrained by loss-making results (negative P/E) and no stated dividend yield.

Positive Factors

Sustained revenue growth

Consistent ~18.6% revenue growth reflects durable end-market demand and successful sales execution. Over 2–6 months this supports scale benefits, improves pricing power opportunities, and provides room to invest in product development and customer retention to solidify market position.

Improved leverage position

A lower debt-to-equity (~0.45) materially increases financial flexibility and reduces refinancing risk. This stronger capital structure supports investment in capacity or R&D, cushions cyclical textile demand, and lowers long-term interest burden versus prior higher leverage.

Product/market diversification & tech

Advanced spinning technologies, sustainability focus and sales into apparel, industrial textiles and home furnishings create a diversified revenue base. Combined with economies of scale, this enhances competitive positioning and reduces single-market exposure over the medium term.

Negative Factors

Weak profitability margins

Persistently negative EBIT and net margins indicate the core business is not generating earnings from operations. Over months this limits reinvestment capacity, increases reliance on cost cuts or pricing shifts, and undermines sustainable free-cash generation and shareholder returns.

Negative operating and free cash flow

Negative operating and free cash flow are structural concerns: they force dependence on external financing or asset sales to fund operations. Over a multi-month horizon this constrains capital expenditures, working capital support for growth, and makes the firm vulnerable in downturns.

Negative return on equity

A negative ROE shows the company is not delivering returns on shareholders' capital despite improving leverage. Persisting negative ROE undermines investor confidence, constrains ability to raise equity on favorable terms, and signals structural profitability issues needing strategic fixes.

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

Company Description

Kitabo Co.,Ltd engages in the manufacturing of healthcare and recycled products. The company operates through spinning, textile, health care, and recycling business segments. It manufactures masks for health care industry. It distributes remote health management wearable device and security camera for crime prevention, disaster prevention and security management systems. It also recycles renewable resins discharged from material manufacturers, processing manufacturers, and industrial waste disposal companies. the company manufactures and sells synthetic spun yarns and fabrics in japan. its products include outdoor goods and clothing, firefighter uniform, functional innerwear, automotive parts, smartphone cases, and cut-resistant gloves. Kitabo Co.,Ltd was formerly known as Kitanihon Spinning Co., Ltd. and changed its name to Kitabo Co.,Ltd in July 2025. The company was incorporated in 1948 and is headquartered in Hakusan, Japan.

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

Revenue grew strongly (+18.57%), but profitability is weak with negative net and EBIT margins. Balance sheet leverage improved (debt-to-equity 0.45), yet ROE remains negative. Cash flow is a key concern with negative operating and free cash flow.

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: Neutral
• Last Price: 121.00
• 50DMA: Positive
• 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 Neutral. The current price of 121 is below the 20-day moving average (MA) of 132.40, below the 50-day MA of 123.54, and below the 200-day MA of 175.82, indicating a neutral trend. The MACD of 5.24 indicates Negative momentum. The RSI at 56.61 is Neutral, neither overbought nor oversold. The STOCH value of 35.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
3045	77 Outperform	¥3.20B	9.43	―	3.55%	4.96%	15.39%
3123	70 Outperform	¥8.03B	7.61	―	2.75%	-4.76%	8.43%
2776	65 Neutral	¥7.14B	150.46	―	―	157.12%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3571	56 Neutral	¥10.07B	32.61	―	5.32%	-1.19%	-87.79%
3409	48 Neutral	¥3.95B	-71.64	―	―	16.33%	75.48%
3111	43 Neutral	¥1.65B	-3.37	―	―	-3.03%	46.85%