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

• Market Cap: ¥3.57B
• Dividend Yield: N/A
• Average Volume (3M): 173.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• 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: 0.00
• 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: ¥113.00 ▼(-6.61% Downside)
• 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

Sustained 18.6% revenue growth signals durable demand or successful commercial traction in yarn products. Over 2-6 months this sales momentum supports better fixed-cost absorption and provides management runway to invest in efficiency and product mix improvements that can drive a structural path to profitability.

Improved Leverage

A lower debt-to-equity ratio materially reduces financial risk and interest burden, improving resilience to industry cyclicality. Structurally, this enhances liquidity optionality for capital expenditures or working capital, enabling the company to invest in operations or endure slower periods without immediate refinancing pressure.

Gross Margin Improvement

A modest improvement in gross margin suggests progress in pricing, input sourcing, or production efficiency. If sustained, higher gross margins provide a structural buffer to absorb SG&A and help translate sales growth into eventual operating profitability, improving long-term margin sustainability in manufacturing.

Negative Factors

Negative Profitability

Persistent negative EBIT and net margins indicate the core operations are not yet profitable. Over the medium term this undermines retained earnings, restricts reinvestment capacity, and necessitates corrective actions (cost cuts, price increases, or product repricing) to achieve durable earnings conversion.

Poor Cash Generation

Ongoing negative operating and free cash flows reflect weak cash conversion and strain working capital. Structurally this limits funding for capex, inventory, and supplier payments, increasing reliance on external financing and reducing operational flexibility during industry downturns or to support growth initiatives.

Negative Return on Equity

A negative ROE shows the company is not generating returns on shareholders' capital, signaling inefficiencies in asset use or pricing. Over months this discourages investor confidence and can limit access to favourable capital, making long-term scaling or strategic investments more difficult without operational turnarounds.

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

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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	2.17B	1.86B	2.07B	2.07B	1.82B
Cash, Cash Equivalents and Short-Term Investments	639.91M	512.93M	216.10M	286.58M	308.63M	480.23M
Total Debt	530.04M	539.60M	545.27M	754.72M	637.47M	597.65M
Total Liabilities	921.71M	979.07M	958.45M	1.11B	989.83M	949.72M
Stockholders Equity	1.30B	1.19B	899.02M	959.94M	1.08B	867.07M
Cash Flow
Free Cash Flow	0.00	0.00	-147.73M	-322.61M	-260.19M	-131.41M
Operating Cash Flow	0.00	0.00	-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: 121.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 121 is below the 20-day moving average (MA) of 122.25, below the 50-day MA of 128.38, and below the 200-day MA of 167.38, indicating a bearish trend. The MACD of -1.88 indicates Positive momentum. The RSI at 41.23 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, 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
3569	78 Outperform	¥169.00B	9.78	10.24%	2.43%	6.08%	8.55%
3104	75 Outperform	¥117.04B	15.30	―	1.79%	10.76%	54.82%
3201	74 Outperform	¥114.01B	13.53	―	2.66%	7.56%	-17.12%
3109	72 Outperform	¥13.52B	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	¥4.11B	14.35	―	2.63%	-3.01%	-65.96%
3409	44 Neutral	¥3.57B	-40.43	―	―	16.33%	75.48%