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

• Market Cap: ¥5.79B
• Dividend Yield: N/A
• Average Volume (3M): 635.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: 21.44%
• EPS Growth: 47.95%
• Country: JP
• Employees: 81
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Apparel - Manufacturers
• EPS (TTM): -1.06
• Shares Outstanding: 27,681,494
• 10 Day Avg. Volume: 289,220
• 30 Day Avg. Volume: 635,556
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥198.00
• Price Target Upside: -3.88% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: ¥198.00 ▼(-3.88% Downside)

Kitanihon Spinning Co., Ltd. faces significant challenges with profitability and cash flow, reflected in a low financial performance score. Technical indicators suggest bearish momentum, and the negative P/E ratio highlights valuation concerns. These factors collectively result in a low overall stock score.

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

Company Description

Kitanihon Spinning Co., Ltd. (3409) is a leading textile manufacturer based in Japan, specializing in the production of high-quality yarns and fabrics. The company operates primarily in the textile sector, offering a diverse range of products that cater to various industries, including apparel, home textiles, and industrial applications. With a focus on innovation and sustainability, Kitanihon Spinning is committed to meeting the evolving needs of its customers while maintaining high standards of quality and environmental responsibility.

How the Company Makes Money

Kitanihon Spinning Co., Ltd. generates revenue through the production and sale of yarns and fabrics, targeting both domestic and international markets. Key revenue streams include the sale of various textile products to apparel manufacturers, home textile companies, and industrial customers. The company also benefits from strategic partnerships with other textile firms and distributors, enhancing its market reach and supply chain efficiency. Additionally, Kitanihon Spinning invests in research and development to create innovative textile solutions, which helps to capture premium pricing for specialized products. The focus on sustainability and eco-friendly production methods has also attracted interest from environmentally conscious consumers and businesses, further contributing to its earnings.

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	1.63B	1.63B	1.31B	1.19B	830.45M	615.39M
Gross Profit	233.00M	233.00M	201.59M	95.55M	82.82M	27.70M
EBITDA	-16.33M	-32.00M	-48.69M	-202.01M	-80.58M	-55.38M
Net Income	-55.00M	-55.00M	-115.62M	-271.09M	-128.10M	-61.21M
Balance Sheet
Total Assets	2.15B	2.15B	1.86B	2.07B	2.07B	1.82B
Cash, Cash Equivalents and Short-Term Investments	512.00M	512.00M	216.10M	286.58M	308.63M	480.23M
Total Debt	536.00M	536.00M	545.27M	754.72M	637.47M	597.65M
Total Liabilities	966.00M	966.00M	958.46M	1.11B	989.83M	949.72M
Stockholders Equity	1.19B	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: 206.00
• 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:3409, the sentiment is Neutral. The current price of 206 is below the 20-day moving average (MA) of 228.15, below the 50-day MA of 226.08, and above the 200-day MA of 148.88, indicating a neutral trend. The MACD of -5.50 indicates Positive momentum. The RSI at 37.01 is Neutral, neither overbought nor oversold. The STOCH value of 7.26 is Positive, 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
3123	79 Outperform	¥6.80B	8.91		3.01%	-5.12%	-24.98%
3045	77 Outperform	¥3.24B	9.59		3.51%	5.23%	21.77%
3571	70 Neutral	¥10.07B	34.93		5.09%	-5.24%	-89.49%
2776	66 Neutral	¥5.78B	345.48		―	219.88%	73.21%
Sector *	61 Neutral	$17.43B	12.62	-6.02%	3.11%	1.71%	-15.47%
3111	48 Neutral	¥1.90B	6.03		―	-1.50%	―
3409	43 Neutral	¥5.79B	―		―	21.44%	47.95%