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

• Market Cap: ¥16.86B
• Dividend Yield: 2.49%
• Average Volume (3M): 22.78K
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.58
• Revenue Growth: 1.27%
• EPS Growth: -43.61%
• Country: JP
• Employees: 2,812
• Sector: Consumer Cyclical
• Sector Strength: 83
• Industry: Apparel - Manufacturers
• EPS (TTM): 43.80
• Shares Outstanding: 15,364,324
• 10 Day Avg. Volume: 22,130
• 30 Day Avg. Volume: 22,776
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,280.00
• Price Target Upside: 6.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥1,280.00 ▲(6.22% Upside)

Suminoe Textile Co., Ltd. receives a moderate overall stock score of 66. The most significant factor is the strong technical analysis, indicating bullish momentum, although caution is advised due to overbought signals. Financial performance shows stable growth but highlights challenges in profitability and cash flow management. Valuation metrics suggest the stock may be overvalued, limiting potential upside.

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

Company Description

Suminoe Textile Co., Ltd. (3501) is a prominent Japanese textile manufacturer specializing in a diverse range of products, including automotive textiles, interior furnishings, and industrial materials. Established in 1883, the company has built a strong reputation for quality and innovation within the textile industry. Suminoe operates in various sectors, including automotive, where it supplies fabrics for vehicle interiors, and home furnishings, offering high-quality textiles for both residential and commercial applications.

How the Company Makes Money

Suminoe Textile Co., Ltd. generates revenue through multiple key streams. Primarily, the company earns income by producing and selling textiles for the automotive sector, which includes seat covers, headliners, and interior trims. This segment often involves long-term contracts with automobile manufacturers, ensuring a steady revenue flow. Additionally, Suminoe markets its textiles for home furnishings and commercial interiors, catering to both retail and wholesale clients. The company also engages in the production of industrial materials, which contributes to its diversification of revenue sources. Significant partnerships with major automotive manufacturers bolster its position in the market, while ongoing innovation in textile technology allows Suminoe to maintain competitiveness and adapt to changing consumer preferences. Overall, the combination of established sectors, strategic partnerships, and a focus on quality and innovation drives the company's financial success.

Suminoe Textile Co., Ltd. Financial Statement Overview

Summary

Suminoe Textile Co., Ltd. demonstrates stable revenue growth and a balanced capital structure, but faces challenges in profitability and cash flow management. While the company maintains a healthy gross profit margin, its net income conversion and cash flow generation need improvement to enhance financial stability and growth prospects.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	103.03B	104.79B	103.48B	94.83B	81.71B	79.70B
Gross Profit	21.93B	22.34B	22.28B	19.43B	17.17B	16.83B
EBITDA	4.72B	5.66B	5.28B	3.52B	3.63B	4.17B
Net Income	-95.00M	670.00M	874.00M	320.00M	281.00M	409.00M
Balance Sheet
Total Assets	92.36B	94.98B	92.20B	88.15B	84.80B	83.67B
Cash, Cash Equivalents and Short-Term Investments	7.12B	8.92B	8.38B	7.14B	8.21B	10.99B
Total Debt	21.57B	23.21B	20.10B	23.17B	20.80B	20.32B
Total Liabilities	54.80B	57.81B	54.51B	54.04B	51.35B	50.71B
Stockholders Equity	31.44B	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: 1205.00
• 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 1205 is above the 20-day moving average (MA) of 1164.90, above the 50-day MA of 1131.08, and above the 200-day MA of 1107.25, indicating a bullish trend. The MACD of 21.00 indicates Negative momentum. The RSI at 79.69 is Negative, neither overbought nor oversold. The STOCH value of 84.49 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
3104	77 Outperform	¥72.00B	15.07		1.99%	15.29%	87.17%
3201	74 Outperform	¥103.84B	12.77		2.48%	7.01%	11.28%
3501	66 Neutral	¥16.86B	24.00		2.49%	1.27%	-43.61%
3109	66 Neutral	¥12.72B	14.50		4.84%	1.93%	-1.93%
Sector *	61 Neutral	$17.97B	12.87	-5.30%	2.97%	1.26%	-14.45%
3111	57 Neutral	¥1.95B	6.08		―	-1.50%	―
3529	46 Neutral	¥17.95B	20.09		―	3.72%	-160.46%

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.