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Kitanihon Spinning Co., Ltd. (JP:3409)
:3409
Japanese Market
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Kitanihon Spinning Co., Ltd. (3409) AI Stock Analysis

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JP:3409

Kitanihon Spinning Co., Ltd.

(3409)

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Neutral 41 (OpenAI - 5.2)
Rating:41Neutral
Price Target:
¥87.00
▼(-28.10% Downside)
Action:Reiterated
Date:07/07/26
The score is primarily held down by weak financial performance, driven by ongoing losses, a return to revenue decline in 2026, and significant cash burn (negative operating and free cash flow). Technicals add further pressure, with the stock trading below key moving averages and negative MACD signaling a weak trend. Valuation does not offset these risks because the company is loss-making (negative P/E) and no dividend yield is available.
Positive Factors
Improving Leverage
A materially lower debt-to-equity ratio over several years reduces financial risk and interest burden, improving funding flexibility. This stronger leverage profile gives management more optionality to navigate losses or pursue restructuring without immediate solvency pressure.
Negative Factors
Severe Cash Burn
Sustained negative operating and free cash flow of this magnitude indicates the business is consuming cash rather than self-funding. Over months this erodes liquidity, forces external financing, and constrains reinvestment, increasing refinancing and execution risk for any turnaround plan.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Leverage
A materially lower debt-to-equity ratio over several years reduces financial risk and interest burden, improving funding flexibility. This stronger leverage profile gives management more optionality to navigate losses or pursue restructuring without immediate solvency pressure.
Read all positive factors

Kitanihon Spinning Co., Ltd. (3409) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Established in 1948 and headquartered in Hakusan, Japan, Kitabo Co. Ltd. (known as Kitanihon Spinning Co., Ltd. until its name change in July 2025) is a multifaceted enterprise engaged in manufacturing across several sectors, notably healthcare an...
How the Company Makes Money
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Kitanihon Spinning Co., Ltd. Financial Statement Overview

Summary
Financials are weak overall: persistent net losses with a widened loss in 2026 and a ~9.9% YoY revenue decline. Cash flow is the biggest concern, with sharply negative operating cash flow and deeply negative free cash flow in 2026, indicating ongoing cash consumption. The balance sheet is a relative positive with improving leverage (debt-to-equity down to ~0.38 in 2026), but negative ROE shows shareholder value is not being generated yet.
Income Statement
26
Negative
Balance Sheet
55
Neutral
Cash Flow
22
Negative
BreakdownMar 2026Mar 2026Mar 2025Mar 2024Mar 2023
Income Statement
Total Revenue1.51B1.63B1.31B1.19B830.45M
Gross Profit222.10M233.00M201.59M95.55M82.82M
EBITDA-115.98M-32.00M-48.69M-202.01M-80.58M
Net Income-135.49M-55.75M-115.62M-271.09M-128.10M
Balance Sheet
Total Assets2.79B2.17B1.86B2.07B2.07B
Cash, Cash Equivalents and Short-Term Investments474.85M512.93M216.10M286.58M308.63M
Total Debt599.62M539.60M545.27M754.72M637.47M
Total Liabilities1.16B979.07M958.45M1.11B989.83M
Stockholders Equity1.56B1.19B899.02M959.94M1.08B
Cash Flow
Free Cash Flow-308.79M0.00-147.73M-322.61M-260.19M
Operating Cash Flow-294.52M0.00-97.02M-91.57M-160.98M
Investing Cash Flow56.67M-35.43M177.29M-207.07M-351.40M
Financing Cash Flow197.76M340.00M-159.58M274.23M336.12M

Kitanihon Spinning Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price121.00
Price Trends
50DMA
101.12
Negative
100DMA
110.37
Negative
200DMA
126.30
Negative
Market Momentum
MACD
-1.84
Negative
RSI
51.45
Neutral
STOCH
86.40
Negative
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 above the 20-day moving average (MA) of 91.80, above the 50-day MA of 101.12, and below the 200-day MA of 126.30, indicating a neutral trend. The MACD of -1.84 indicates Negative momentum. The RSI at 51.45 is Neutral, neither overbought nor oversold. The STOCH value of 86.40 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥171.95B12.0710.24%2.43%7.59%9.69%
77
Outperform
¥130.47B23.261.79%7.03%26.11%
74
Outperform
¥113.65B13.222.66%0.19%9.62%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
58
Neutral
¥12.99B14.014.80%13.99%3.23%
52
Neutral
¥3.87B42.212.63%-2.30%65.45%
41
Neutral
¥3.00B-19.47-7.68%-87.70%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3409
Kitanihon Spinning Co., Ltd.
95.00
-155.00
-62.00%
JP:3569
Seiren Co
3,205.00
886.76
38.25%
JP:3104
Fujibo Holdings, Inc.
3,860.00
1,992.54
106.70%
JP:3109
Shikibo Ltd.
1,048.00
104.73
11.10%
JP:3201
Japan Wool Textile Co., Ltd.
1,850.00
480.15
35.05%
JP:3202
Daitobo Co.,Ltd.
128.00
19.38
17.84%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 07, 2026