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

• Market Cap: ¥4.00B
• Dividend Yield: N/A
• Average Volume (3M): 173.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: 16.33%
• EPS Growth: 75.48%
• Country: JP
• Employees: 81
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 30,790,394
• 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: 44 Neutral
• Price Target: ¥127.00 ▲(4.96% Upside)
• Action: Reiterated Date: 03/07/26
• Date: Action: Reiterated 03/07/26

The score is mainly constrained by weak financial quality—negative profitability and negative operating/free cash flow—despite strong recent revenue growth and improved leverage. Technicals also remain bearish with a negative MACD and price below longer-term moving averages, while oversold indicators provide only limited support. Valuation is difficult to justify with a negative P/E and no dividend data.

Positive Factors

Revenue growth momentum

An 18.57% revenue increase indicates durable demand expansion for the company's yarn products and improved top-line traction. Sustained sales growth supports better capacity utilization, scale benefits and provides a runway to improve margins if cost control and mix are managed over the next several quarters.

Improved leverage position

A lower debt-to-equity ratio (0.45) materially improves financial flexibility and reduces interest burden risk. This stronger leverage profile helps the company withstand cyclical textile demand, access affordable financing for capex or inventory, and lowers default/ refinancing risk over months ahead.

Focused yarn manufacturing business

A clear, specialized business model focused on yarn and textile materials creates niche competitive strength and enduring customer relationships with downstream apparel and industrial users. Specialization enables operational expertise, stable order pipelines and differentiated capabilities versus diversified peers.

Negative Factors

Negative profitability

Persistent negative net and EBIT margins mean the company is not converting sales into sustainable profits. Over months this undermines retained earnings, limits reinvestment for efficiency or product improvements, and increases reliance on external capital to fund operations and growth plans.

Weak cash flow generation

Negative operating and free cash flows indicate the business is not generating internal liquidity to fund working capital or capex. This structural cash shortfall pressures liquidity, forces dependence on borrowings or equity and constrains the company's ability to execute strategic initiatives over the medium term.

Negative return on equity

A negative ROE shows shareholder capital is not earning returns, signaling inefficient capital deployment or persistent losses. Over time this can erode investor confidence, limit access to growth capital, and make it harder to finance improvements without diluting existing shareholders or raising costly debt.

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 remains weak with negative net and EBIT margins. Cash flow is a key concern with negative operating and free cash flow, despite improved leverage (debt-to-equity 0.45).

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	Mar 2025	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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: Positive
• Last Price: 121.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Positive. The current price of 121 is below the 20-day moving average (MA) of 125.80, below the 50-day MA of 127.30, and below the 200-day MA of 170.57, indicating a neutral trend. The MACD of -2.79 indicates Positive momentum. The RSI at 56.88 is Neutral, neither overbought nor oversold. The STOCH value of 32.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3569	78 Outperform	¥184.02B	9.78	10.24%	2.43%	6.08%	8.55%
3104	75 Outperform	¥117.48B	15.30	―	1.79%	10.76%	54.82%
3201	74 Outperform	¥118.01B	13.53	―	2.66%	7.56%	-17.12%
3109	72 Outperform	¥13.78B	4.54	―	4.80%	4.49%	26.84%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3202	57 Neutral	¥4.21B	14.35	―	2.63%	-3.01%	-65.96%
3409	44 Neutral	¥4.00B	-40.43	―	―	16.33%	75.48%