Nippon Felt Company Limited (3512) AI Stock Analysis

• Market Cap: ¥9.94B
• Dividend Yield: 3.45%
• Average Volume (3M): 31.43K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.37
• Revenue Growth: -5.08%
• EPS Growth: -3.36%
• Country: JP
• Employees: 570
• Sector: Industrials
• Sector Strength: 78
• Industry: Conglomerates
• EPS (TTM): 9.52
• Shares Outstanding: 18,342,089
• 10 Day Avg. Volume: 23,740
• 30 Day Avg. Volume: 31,426
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• 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: ¥550.00
• Price Target Upside: -5.17% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ¥550.00 ▼(-5.17% Downside)

The stock's overall score is mainly influenced by a strong balance sheet and solid cash flow, despite operational challenges and revenue decline. Technical indicators suggest overbought conditions, and valuation metrics indicate modest attractiveness with a reasonable dividend yield.

Nippon Felt Company Limited Business Overview & Revenue Model

Company Description

Nippon Felt Co., Ltd. manufactures and sells press felts, shoe press belts, and industrial textile products in Japan and internationally. The company offers papermaking felts and pulp-making felts; felts for slate and building materials manufacturing; synthetic textiles for paper making or other industrial uses; industrial use felts; industrial tubular needle-felts for industrial use; industrial woven jackets; industrial detergents and industrial chemicals; and high-pressure shower equipment for paper-making. It is also involved in leasing and managing real estate properties, as well as producing and selling industrial machinery and anti-pollution devices. The company was founded in 1917 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Felt Company Limited generates revenue through the manufacture and sale of specialized felt products and technical textiles. The company's primary revenue stream comes from supplying paper machine clothing, which is a critical component in the paper manufacturing process. These products are designed to optimize the performance of paper machines, enhancing productivity and product quality for paper manufacturers. Additionally, Nippon Felt diversifies its income through the production of industrial felts used in various other sectors, including automotive and construction. Strategic partnerships and long-term contracts with major industrial clients contribute significantly to the company's earnings, ensuring a stable demand for its high-quality, performance-enhancing textiles.

Nippon Felt Company Limited Financial Statement Overview

Summary

The company displays a mixed financial performance with stable gross margins but declining revenue and shrinking net margins, indicating operational challenges. The balance sheet is strong with low leverage and high equity, ensuring financial stability. Cash flow generation is solid, though free cash flow shows signs of pressure.

Income Statement

The company's gross profit margin has shown stability around 30% over the years. However, the net profit margin has decreased from 4.1% to 4.4% in recent years, indicating potential inefficiencies or increased expenses. Revenue has declined slightly over the years, with a notable drop of 6.5% from 2024 to 2025, affecting overall top-line growth. Despite this, the company maintains a reasonable EBIT margin, although it decreased from 8.0% in 2023 to 2.1% in 2025, suggesting operational challenges.

Balance Sheet

The balance sheet remains strong with a low debt-to-equity ratio of 0.04, reflecting minimal leverage risk. The company's equity ratio is high at over 80%, indicating a solid equity position and long-term solvency. Return on equity has decreased from 4.2% in 2023 to 2.1% in 2025, which may concern investors seeking high returns. Overall, the company maintains a strong capital structure with a healthy equity base.

Cash Flow

Operating cash flow remains robust, though it shows some volatility. Free cash flow has decreased significantly from previous years, indicating increased capital expenditure or reduced cash generation from operations. The operating cash flow to net income ratio remains healthy, demonstrating strong cash conversion, but the free cash flow to net income ratio has declined, suggesting potential liquidity constraints in capital allocation.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.70B	10.08B	10.40B	9.84B	10.01B
Gross Profit	3.09B	3.17B	3.50B	3.25B	2.91B
EBITDA	1.12B	1.23B	1.62B	1.24B	1.14B
Net Income	429.90M	487.51M	750.10M	499.19M	329.71M
Balance Sheet
Total Assets	25.26B	25.07B	23.59B	22.79B	22.65B
Cash, Cash Equivalents and Short-Term Investments	3.70B	3.96B	5.76B	5.54B	4.96B
Total Debt	800.00M	801.46M	1.61B	1.62B	1.66B
Total Liabilities	4.55B	4.70B	5.38B	5.39B	5.36B
Stockholders Equity	20.24B	19.93B	17.81B	17.02B	16.96B
Cash Flow
Free Cash Flow	198.34M	109.10M	498.98M	1.01B	630.77M
Operating Cash Flow	1.06B	611.39M	1.06B	1.28B	1.05B
Investing Cash Flow	-753.61M	-934.50M	-562.01M	-251.25M	-690.90M
Financing Cash Flow	-623.28M	-1.33B	-262.46M	-431.97M	411.60M

Nippon Felt Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 580.00
• 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:3512, the sentiment is Positive. The current price of 580 is above the 20-day moving average (MA) of 548.95, above the 50-day MA of 498.20, and above the 200-day MA of 475.00, indicating a bullish trend. The MACD of 21.28 indicates Negative momentum. The RSI at 81.38 is Negative, neither overbought nor oversold. The STOCH value of 87.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3512.

Nippon Felt Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8020	80 Outperform	¥255.98B	9.60		3.35%	3.81%	7.15%
8157	80 Outperform	¥53.00B	11.58		2.82%	-14.87%	-0.65%
8014	74 Outperform	¥95.61B	9.57		3.64%	-0.89%	-13.53%
3106	71 Outperform	¥130.95B	11.10		1.95%	-2.16%	69.82%
Sector *	65 Neutral	$2.63B	15.35	15.18%	3.65%	0.27%	30.08%
3512	60 Neutral	¥9.94B	23.06		3.45%	-5.08%	-3.36%
NBO	―	€1.03B	13.14	5.13%	―	―	―