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

• Market Cap: ¥15.49B
• Dividend Yield: 2.71%
• Average Volume (3M): 26.94K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.61
• Revenue Growth: -0.13%
• EPS Growth: -103.88%
• Country: JP
• Employees: 2,812
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Manufacturers
• EPS (TTM): 43.80
• Shares Outstanding: 15,364,324
• 10 Day Avg. Volume: 40,980
• 30 Day Avg. Volume: 26,943
• PEG Ratio: 0.40
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• 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: ¥1,220.00
• Price Target Upside: 12.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• 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. Business Overview & Revenue Model

Company Description

Suminoe 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 Money

Suminoe 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

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

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

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.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	103.48B	94.83B	81.71B	79.70B	91.51B
Gross Profit	22.28B	19.43B	17.17B	16.83B	18.68B
EBITDA	5.28B	3.52B	2.03B	3.03B	3.59B
Net Income	874.00M	320.00M	281.00M	409.00M	142.00M
Balance Sheet
Total Assets	92.20B	88.15B	84.80B	83.67B	86.27B
Cash, Cash Equivalents and Short-Term Investments	8.38B	7.14B	8.21B	10.99B	10.53B
Total Debt	20.10B	23.17B	20.80B	20.32B	22.16B
Total Liabilities	54.51B	54.04B	51.35B	50.71B	53.69B
Stockholders Equity	32.04B	28.86B	28.30B	28.04B	28.00B
Cash Flow
Free Cash Flow	3.78B	-1.23B	-4.04B	1.58B	3.93B
Operating Cash Flow	7.45B	1.80B	375.00M	4.17B	5.90B
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 Price: 1081.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3104	77 Outperform	¥64.23B	14.09		2.25%	18.84%	113.24%
3201	75 Outperform	¥88.04B	10.78		2.95%	7.01%	11.28%
3109	66 Neutral	¥12.18B	13.50		5.09%	1.05%	5.07%
3501	59 Neutral	¥15.49B	21.77		2.71%	-0.13%	-103.88%
Sector *	57 Neutral	HK$26.40B	4.14	-2.03%	5.51%	-0.23%	-68.02%
3529	55 Neutral	¥19.42B	20.09		―	3.16%	-128.26%
3111	50 Neutral	¥1.92B	6.40		―	12.55%	―

Suminoe Textile Co., Ltd. Corporate Events

Suminoe Textile Announces Name Change and Releases Integrated Report 2024

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

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

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.