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Suminoe Textile Co., Ltd. (JP:3501)
:3501
Japanese Market
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Suminoe Textile Co., Ltd. (3501) AI Stock Analysis

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JP:3501

Suminoe Textile Co., Ltd.

(3501)

Rating:59Neutral
Price Target:
¥1,220.00
▲(12.86%Upside)
Suminoe Textile Co., Ltd. exhibits a moderate financial performance with significant improvements in revenue and operational efficiency. However, the stock faces valuation challenges due to negative earnings and weak short-term momentum. Potential investors should be cautious of leverage and profitability issues, despite some positive cash flow signals.

Suminoe Textile Co., Ltd. (3501) vs. iShares MSCI Japan ETF (EWJ)

Suminoe Textile Co., Ltd. Business Overview & Revenue Model

Company DescriptionSuminoe Textile Co., Ltd. is a Japanese company specializing in the manufacture and sale of textile products. Founded in 1883, the company operates in several sectors, including interior furnishing textiles, automotive textiles, and functional materials. Suminoe's core products encompass carpets, curtains, and wallpapers for residential and commercial spaces, as well as seat coverings and interior materials for automobiles.
How the Company Makes MoneySuminoe Textile Co., Ltd. generates revenue through the sale of its diverse range of textile products. The company's key revenue streams are categorized into three main sectors: interior fabrics, automotive textiles, and functional materials. In the interior fabrics sector, Suminoe supplies carpets, curtains, and other home furnishing materials to residential and commercial clients. The automotive textiles sector is a significant contributor to revenue, where the company provides seat coverings, floor mats, and other interior materials to various automotive manufacturers. Additionally, the functional materials division develops and sells high-performance textiles that serve specific technical purposes, such as air filters and deodorizers. Strategic partnerships with automotive manufacturers and ongoing innovation in textile technology also play a crucial role in bolstering Suminoe's earnings.

Suminoe Textile Co., Ltd. Financial Statement Overview

Summary
Suminoe Textile Co., Ltd. has demonstrated strong revenue growth and improved operational efficiency, with notable improvements in EBIT and EBITDA margins. However, challenges remain in profit conversion and leverage management, as indicated by a low net profit margin and moderate debt levels.
Income Statement
73
Positive
Suminoe Textile Co., Ltd. has shown a healthy revenue growth of 9.1% from 2022 to 2023, which is positive for its positioning in the apparel industry. The gross profit margin improved to 21.53% in 2023, reflecting efficient cost management. However, the net profit margin remains low at 0.84%, indicating challenges in converting sales into profit. There is a substantial improvement in EBIT and EBITDA margins, suggesting enhanced operational efficiency.
Balance Sheet
68
Positive
The company's debt-to-equity ratio is at 0.63, reflecting a moderate level of leverage. The equity ratio is 34.74%, indicating a reasonable capital structure. The return on equity has improved to 2.73%, reflecting better profit generation on shareholders' equity. However, the overall leverage could pose some risks if not managed properly.
Cash Flow
65
Positive
Free cash flow turned positive in 2023, indicating improved cash management. The operating cash flow to net income ratio is strong, highlighting efficient cash generation relative to net income. However, the free cash flow to net income ratio needs further improvement to ensure long-term sustainability.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue103.48B94.83B81.71B79.70B91.51B
Gross Profit22.28B19.43B17.17B16.83B18.68B
EBITDA5.28B3.52B2.03B3.03B3.59B
Net Income874.00M320.00M281.00M409.00M142.00M
Balance Sheet
Total Assets92.20B88.15B84.80B83.67B86.27B
Cash, Cash Equivalents and Short-Term Investments8.38B7.14B8.21B10.99B10.53B
Total Debt20.10B23.17B20.80B20.32B22.16B
Total Liabilities54.51B54.04B51.35B50.71B53.69B
Stockholders Equity32.04B28.86B28.30B28.04B28.00B
Cash Flow
Free Cash Flow3.78B-1.23B-4.04B1.58B3.93B
Operating Cash Flow7.45B1.80B375.00M4.17B5.90B
Investing Cash Flow-2.32B-2.83B-1.19B-754.00M-1.54B
Financing Cash Flow-4.20B-52.00M-2.07B-3.17B-1.70B

Suminoe Textile Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1081.00
Price Trends
50DMA
1143.80
Negative
100DMA
1149.83
Negative
200DMA
1082.50
Positive
Market Momentum
MACD
-13.40
Positive
RSI
31.51
Neutral
STOCH
10.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3501, the sentiment is Negative. The current price of 1081 is below the 20-day moving average (MA) of 1106.45, below the 50-day MA of 1143.80, and below the 200-day MA of 1082.50, indicating a neutral trend. The MACD of -13.40 indicates Positive momentum. The RSI at 31.51 is Neutral, neither overbought nor oversold. The STOCH value of 10.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3501.

Suminoe Textile Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥64.23B14.09
2.25%18.84%113.24%
75
Outperform
¥88.04B10.78
2.95%7.01%11.28%
66
Neutral
¥12.18B13.50
5.09%1.05%5.07%
59
Neutral
¥15.49B21.77
2.71%-0.13%-103.88%
57
Neutral
HK$26.40B4.14-2.03%5.51%-0.23%-68.02%
55
Neutral
¥19.42B20.09
3.16%-128.26%
50
Neutral
¥1.92B6.40
12.55%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3501
Suminoe Textile Co., Ltd.
1,081.00
-15.36
-1.40%
JP:3104
Fujibo Holdings, Inc.
5,790.00
1,597.83
38.11%
JP:3109
Shikibo Ltd.
982.00
-91.42
-8.52%
JP:3111
Omikenshi Co., Ltd.
288.00
-43.00
-12.99%
JP:3201
Japan Wool Textile Co., Ltd.
1,388.00
126.43
10.02%
JP:3529
Atsugi Co., Ltd.
1,253.00
594.00
90.14%

Suminoe Textile Co., Ltd. Corporate Events

Suminoe Textile Announces Name Change and Releases Integrated Report 2024
Mar 19, 2025

Suminoe Textile Co., Ltd. has announced a name change to SUMINOE Co., Ltd., effective December 2, 2024, as part of its strategic initiatives to enhance corporate value and align with its group philosophy. The company has released its Integrated Report 2024, detailing its commitment to sustainability, ethical practices, and value creation for stakeholders, with an emphasis on long-term growth and environmental preservation.

Suminoe Textile Co., Ltd. Celebrates 140 Years with a Focus on Innovation and Sustainability
Mar 19, 2025

Suminoe Textile Co., Ltd. celebrates its 140th anniversary by committing to innovation and sustainability in its product offerings. The company aims to set a new comfort standard by leveraging its technological capabilities and extensive customer base, focusing on creating value that aligns with modern environmental and lifestyle needs.

Suminoe Textile Co., Ltd. Advances Sustainability and Innovation in Textile Manufacturing
Mar 19, 2025

Suminoe Textile Co., Ltd. emphasizes its commitment to sustainability and innovation in its latest publication. The company highlights its use of environmentally friendly materials and processes, such as vegetable oil ink and waterless printing, to reduce environmental impact. This approach aligns with their broader strategy to enhance the value of their products across various sectors, including automotive textiles and public transportation facilities, while maintaining a focus on health and environmental friendliness.

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: May 30, 2025