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

• Market Cap: ¥18.19B
• Dividend Yield: 3.46%
• Average Volume (3M): 11.42K
• Price to Earnings (P/E): 24.9
• 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): 4.48
• 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: ¥1,318.00 ▲(5.02% Upside)

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

Revenue Diversification

Suminoe's diverse revenue streams across automotive, home furnishings, and industrial materials reduce reliance on a single market, enhancing resilience against sector-specific downturns.

Strategic Partnerships

Partnerships with major automotive manufacturers provide Suminoe with stable, long-term contracts, ensuring steady revenue and reinforcing its market position.

Innovation in Textile Technology

Continuous innovation in textile technology enables Suminoe to stay competitive, meet evolving consumer demands, and potentially capture new market opportunities.

Negative Factors

Profitability Challenges

Low net profit margins indicate difficulties in translating revenue into profit, which could hinder financial growth and shareholder returns if not addressed.

Cash Flow Inefficiencies

Decreased operating cash flow suggests inefficiencies in cash conversion, potentially affecting liquidity and the ability to fund operations or invest in growth.

Slow Revenue Growth

Moderate revenue growth reflects a stable but slow growth trajectory, which may limit the company's ability to rapidly expand or capture market share.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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 above the 20-day moving average (MA) of 1247.90, above the 50-day MA of 1224.83, and above the 200-day MA of 1165.78, indicating a bullish trend. The MACD of 20.31 indicates Negative momentum. The RSI at 76.53 is Negative, neither overbought nor oversold. The STOCH value of 83.33 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	78 Outperform	¥96.96B	19.35	―	1.79%	10.76%	54.82%
3109	72 Outperform	¥13.58B	14.60	―	4.80%	4.49%	26.84%
3201	72 Outperform	¥114.57B	16.45	―	2.66%	7.56%	-17.12%
3501	68 Neutral	¥18.19B	24.92	―	3.46%	1.50%	241.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3529	57 Neutral	¥20.02B	-19.41	―	―	4.15%	-289.87%
3111	43 Neutral	¥1.64B	-3.34	―	―	-3.03%	46.85%

Suminoe Textile Co., Ltd. Corporate Events

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.