Nippon Felt Company Limited (3512) AI Stock Analysis

• Market Cap: ¥12.27B
• Dividend Yield: 2.41%
• Average Volume (3M): 15.25K
• Price to Earnings (P/E): 27.9
• Beta (1Y): 0.33
• Revenue Growth: -4.23%
• EPS Growth: -5.96%
• Country: JP
• Employees: 570
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 6.94
• Shares Outstanding: 18,342,089
• 10 Day Avg. Volume: 7,750
• 30 Day Avg. Volume: 15,253
• PEG Ratio: -2.09
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.89
• P/FCF Ratio: 43.73
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥716.00 ▲(1.70% Upside)

The overall stock score of 73 reflects a strong technical performance, with the stock trading above key moving averages, indicating bullish momentum. However, the overbought technical indicators suggest caution. Financial performance is mixed, with a strong balance sheet but declining revenue and margins. The valuation is somewhat high, but the dividend yield offers a compensatory return. No significant earnings call or corporate events data were available to influence the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage risk ensures financial stability and provides a solid foundation for future growth and investment.

Cash Flow Generation

Robust operating cash flow indicates strong cash conversion, supporting ongoing operations and potential reinvestment opportunities.

Innovative Product Offerings

Innovation in textile technology and sustainability enhances competitive advantage and aligns with growing demand for eco-friendly materials.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share or pricing power, potentially impacting long-term growth prospects.

Shrinking Margins

Shrinking margins suggest operational inefficiencies or rising costs, which could pressure profitability if not addressed.

Pressure on Free Cash Flow

Decreased free cash flow may limit the company's ability to invest in growth opportunities or return capital to shareholders.

Nippon Felt Company Limited Business Overview & Revenue Model

Company Description

Nippon Felt Company Limited (3512) is a leading manufacturer in Japan specializing in industrial textiles and felt products. The company operates primarily in the textile manufacturing sector, providing a range of products including felt materials for various applications in industries such as automotive, electronics, and construction. Nippon Felt is known for its innovative approaches to textile technology and sustainability, catering to both domestic and international markets.

How the Company Makes Money

Nippon Felt Company Limited generates revenue primarily through the sale of its felt and textile products to various industrial sectors. The company's revenue model is based on direct sales to manufacturers in key industries, including automotive and electronics, where felt is used for insulation, cushioning, and soundproofing. Additionally, Nippon Felt may engage in custom manufacturing services, providing tailored solutions to meet specific client needs, which can command premium pricing. The company also benefits from strategic partnerships with leading corporations in its targeted industries, enabling it to secure long-term contracts and stable revenue streams. Factors such as the growing demand for eco-friendly materials and advancements in textile technology further enhance its earning potential.

Nippon Felt Company Limited Financial Statement Overview

Summary

The company's financial performance is mixed. While the balance sheet is strong with low leverage and high equity ratio, revenue decline and shrinking margins indicate operational challenges. The cash flow is solid but shows pressure on free cash flow, suggesting liquidity constraints.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.62B	9.70B	10.08B	10.40B	9.84B	10.01B
Gross Profit	2.88B	3.09B	3.17B	3.50B	3.25B	2.91B
EBITDA	891.65M	1.12B	1.23B	1.62B	1.24B	1.14B
Net Income	443.33M	429.90M	487.51M	750.10M	499.19M	329.71M
Balance Sheet
Total Assets	24.70B	25.26B	25.07B	23.59B	22.79B	22.65B
Cash, Cash Equivalents and Short-Term Investments	3.41B	3.70B	3.96B	5.33B	5.06B	4.42B
Total Debt	800.00M	800.00M	801.46M	1.61B	1.62B	1.66B
Total Liabilities	4.21B	4.55B	4.70B	5.38B	5.39B	5.36B
Stockholders Equity	20.04B	20.24B	19.93B	17.81B	17.02B	16.96B
Cash Flow
Free Cash Flow	0.00	198.34M	109.10M	498.98M	1.01B	630.77M
Operating Cash Flow	0.00	1.06B	611.39M	1.06B	1.28B	1.05B
Investing Cash Flow	0.00	-753.61M	-934.50M	-562.01M	-251.25M	-690.90M
Financing Cash Flow	0.00	-623.28M	-1.33B	-262.46M	-431.97M	411.60M

Nippon Felt Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 704.00
• 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 704 is above the 20-day moving average (MA) of 640.15, above the 50-day MA of 618.16, and above the 200-day MA of 524.56, indicating a bullish trend. The MACD of 11.65 indicates Negative momentum. The RSI at 74.45 is Negative, neither overbought nor oversold. The STOCH value of 81.45 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
3106	77 Outperform	¥138.97B	12.28	―	2.66%	-1.63%	67.13%
3512	73 Outperform	¥12.27B	27.93	―	2.41%	-4.23%	-5.96%
8014	73 Outperform	¥100.77B	10.37	―	3.74%	-2.33%	-16.42%
8020	73 Outperform	¥293.98B	10.29	―	3.13%	1.50%	9.82%
3105	70 Outperform	¥207.49B	10.03	8.35%	2.73%	3.35%	810.44%
8157	68 Neutral	¥55.97B	11.12	―	2.82%	-5.63%	52.73%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%