Suminoe Textile Co., Ltd. (3501) AI Stock Analysis

• Market Cap: ¥20.17B
• Dividend Yield: 3.46%
• Average Volume (3M): 11.42K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.56
• Revenue Growth: 1.50%
• EPS Growth: 241.33%
• Country: JP
• Employees: 2,812
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): N/A
• Shares Outstanding: 15,364,324
• 10 Day Avg. Volume: 10,480
• 30 Day Avg. Volume: 11,423
• PEG Ratio: -0.96
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -35.27
• 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: 68 Neutral
• Price Target: ¥1,517.00 ▲(20.88% Upside)
• Action: Reiterated Date: 10/17/25
• Date: Action: Reiterated 10/17/25

Suminoe Textile Co., Ltd. has a balanced financial performance with stable revenue growth but faces challenges in profitability and cash flow. The technical indicators show positive momentum, and the valuation is attractive with a reasonable P/E ratio and a decent dividend yield. These factors contribute to a moderately positive outlook for the stock.

Positive Factors

Diversified end-markets & partnerships

Serving automotive, residential, commercial and industrial end-markets and holding significant partnerships with auto and construction firms gives durable revenue diversification. This reduces exposure to any single cyclical sector, supports repeat contract flows and underpins steady near-term sales and order visibility.

Improved leverage and balanced capital structure

A slightly improved debt-to-equity ratio and balanced equity ratio indicate stronger financial flexibility and lower solvency risk. This durable improvement supports capacity to fund capex or weather downturns without materially increasing financial strain, aiding long-term strategic investments.

Stable revenue growth with healthy gross margins

Consistent revenue growth and healthy gross margins point to sustained product pricing power and manufacturing efficiency in core textile lines. Over months this supports stable top-line and gross-profit generation, providing a foundation for margin recovery if operating costs are addressed.

Negative Factors

Negative free cash flow and falling operating cash flow

Significantly weaker operating cash flow and negative free cash flow are durable concerns: they constrain reinvestment, debt repayment and dividend capacity. Persistent cash conversion issues raise liquidity risk and limit strategic flexibility over the next several quarters unless operational cash conversion improves.

Low net profit margin

A low net profit margin despite healthy gross margins signals lasting pressure from SG&A, financing or one-time items that erode earnings. This reduces retained earnings and long-term return generation, making it harder to finance growth internally or improve ROE without structural cost improvements.

Modest return on equity and room to optimize assets

Modest ROE and explicit potential to optimize asset utilization point to subpar capital efficiency. Over months this constrains shareholder return and suggests management must improve asset turnover, product mix or investment allocation to sustainably lift profitability and growth outcomes.

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

Company Description

Suminoe Textile Co., Ltd. manufactures and sells interior fittings, automotive textile and traffic facilities, and functional materials in Japan, North and Central America, Asia, and internationally. The company offers curtains, carpet tiles, rugs and mats, and wall papers for use in various buildings; seat covering and ceiling materials, floor carpets, exterior fabric components, and car mats for automobile manufacturers; and cushion materials for use in public transportation vehicles comprising trains, buses, ships, and aircraft. It also provides stationary deodorizers for home use; deodorizing filters; electric carpets for home appliance manufacturers; floor materials for bathrooms; polyester high-mesh for screen doors; and water shielding/thermal insulation sheets. In addition, the company offers art and craft textiles, including plush hand-woven curtains, hand-woven carpets, and hooked rugs, as well as brocades and flags; and processes silicon wafers for solar cells. Suminoe Textile Co., Ltd. was founded in 1883 and is headquartered in Osaka, Japan.

How the Company Makes Money

Suminoe Textile generates revenue primarily through the manufacturing and sale of textiles across different sectors. Key revenue streams include the production of automotive fabrics, which are supplied to major automobile manufacturers, and the development of interior textiles for home and office environments. The company also earns income from industrial textiles used in various applications. Significant partnerships with leading automotive and construction companies enhance its market presence and contribute to consistent sales. Additionally, the focus on sustainable practices and innovation in textile technology allows Suminoe Textile to attract a diverse clientele, further driving its earnings.

Suminoe Textile Co., Ltd. Financial Statement Overview

Summary

Suminoe Textile Co., Ltd. shows stable revenue growth and a balanced capital structure. However, it faces challenges in profitability and cash flow management, with a low net profit margin and negative free cash flow indicating potential liquidity issues.

Income Statement

Suminoe Textile Co., Ltd. has shown moderate revenue growth of 1.97% in the latest period, indicating a stable but slow growth trajectory. The gross profit margin is healthy, but the net profit margin is relatively low, suggesting challenges in converting revenue into profit. EBIT and EBITDA margins are modest, reflecting operational efficiency but with room for improvement.

Balance Sheet

The company's debt-to-equity ratio has improved slightly, indicating a stable leverage position. Return on equity is modest, showing moderate efficiency in generating returns from equity. The equity ratio suggests a balanced capital structure, but there is potential for optimizing asset utilization.

Cash Flow

Operating cash flow has decreased significantly, impacting the company's ability to generate cash from operations. The negative free cash flow and its growth rate indicate potential liquidity challenges. The ratios of operating and free cash flow to net income suggest inefficiencies in cash conversion.

Breakdown	TTM	May 2024	May 2023	May 2022	May 2021	May 2021
Income Statement
Total Revenue	105.69B	104.79B	103.48B	94.83B	81.71B	79.70B
Gross Profit	22.57B	22.34B	22.28B	19.43B	17.17B	16.83B
EBITDA	5.44B	5.66B	5.28B	3.52B	3.63B	4.17B
Net Income	1.19B	670.00M	874.00M	320.00M	281.00M	409.00M
Balance Sheet
Total Assets	97.68B	94.98B	92.20B	88.15B	84.80B	83.67B
Cash, Cash Equivalents and Short-Term Investments	12.24B	8.92B	8.38B	7.14B	8.21B	10.99B
Total Debt	24.61B	23.21B	20.10B	23.17B	20.80B	20.32B
Total Liabilities	60.48B	57.81B	54.51B	54.04B	51.35B	50.71B
Stockholders Equity	31.15B	31.18B	32.04B	28.86B	28.30B	28.04B
Cash Flow
Free Cash Flow	0.00	-439.00M	3.78B	-1.23B	-4.04B	1.58B
Operating Cash Flow	0.00	2.28B	7.45B	1.80B	375.00M	4.17B
Investing Cash Flow	0.00	-2.25B	-2.32B	-2.83B	-1.19B	-754.00M
Financing Cash Flow	0.00	773.00M	-4.20B	-52.00M	-2.07B	-3.17B

Suminoe Textile Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1255.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3501, the sentiment is Positive. The current price of 1255 is below the 20-day moving average (MA) of 1340.40, below the 50-day MA of 1293.80, and above the 200-day MA of 1191.96, indicating a bullish trend. The MACD of 25.53 indicates Negative momentum. The RSI at 76.25 is Negative, neither overbought nor oversold. The STOCH value of 84.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3501.

Suminoe Textile Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3569	78 Outperform	¥195.02B	13.54	10.24%	2.43%	6.08%	8.55%
3110	75 Outperform	€917.49B	23.81	11.10%	0.99%	9.49%	55.64%
3104	75 Outperform	¥121.70B	24.35	―	1.79%	10.76%	54.82%
3201	74 Outperform	¥128.76B	15.85	―	2.66%	7.56%	-17.12%
3501	68 Neutral	¥20.17B	27.62	―	3.46%	1.50%	241.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3402	58 Neutral	¥1.97T	47.60	3.37%	1.85%	-2.18%	26.45%

Suminoe Textile Co., Ltd. Corporate Events

Suminoe Boosts First-Half Profit and Confirms Full-Year Outlook, Dividend Plan

Suminoe Co., Ltd. reported consolidated net sales of ¥52.96 billion for the six months ended November 30, 2025, up 4.5% year on year, with operating profit rising 19.5% to ¥886 million and ordinary profit jumping 165.6% to ¥1.19 billion, while profit attributable to owners of parent increased 32.1% to ¥86 million. The company’s financial position remained stable, with total assets of ¥97.18 billion and an equity-to-asset ratio of 33.0%, and it confirmed an unchanged full-year forecast for FY ending May 31, 2026 of ¥105 billion in net sales and ¥1.5 billion in profit attributable to owners of parent, as well as a planned annual dividend of ¥43 per share, signalling steady earnings recovery and continued shareholder returns despite the exclusion of its Chinese subsidiary Suzhou Suminoe Textiles Co., Ltd. from the scope of consolidation.

The most recent analyst rating on (JP:3501) stock is a Hold with a Yen1247.00 price target. To see the full list of analyst forecasts on Suminoe Textile Co., Ltd. stock, see the JP:3501 Stock Forecast page.

Suminoe Upgrades Interim Earnings Forecast on Strong Interior and Automotive Textile Demand

Suminoe Co., Ltd. has revised upward its consolidated forecast for the second quarter of the fiscal year ending May 31, 2026, projecting higher net sales, operating profit and ordinary profit than previously announced, driven by robust demand for interior products in its Automotive Textiles and Traffic Facilities Segment and solid growth in its space design business within the Interior Fittings Segment. Despite these improvements, profit attributable to owners of parent is now expected to be slightly lower than the earlier forecast, though the company has left its dividend outlook unchanged, indicating confidence in its overall operating performance and margin support from price revisions amid persistently high raw material and energy costs.

The most recent analyst rating on (JP:3501) stock is a Hold with a Yen1318.00 price target. To see the full list of analyst forecasts on Suminoe Textile Co., Ltd. stock, see the JP:3501 Stock Forecast page.

Suminoe Co., Ltd. Announces Key Executive Changes

Suminoe Co., Ltd. announced personnel changes effective January 1, 2026, involving key executive roles in its Mexican subsidiaries and other divisions. These changes reflect the company’s strategic focus on strengthening its operational leadership and enhancing its business operations in Mexico and other regions.

The most recent analyst rating on (JP:3501) stock is a Hold with a Yen1318.00 price target. To see the full list of analyst forecasts on Suminoe Textile Co., Ltd. stock, see the JP:3501 Stock Forecast page.