Nippon Felt Company Limited (3512) AI Stock Analysis

• Market Cap: ¥7.97B
• Dividend Yield: 4.38%
• Average Volume (3M): 11.71K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.35
• Revenue Growth: -3.80%
• EPS Growth: -9.47%
• Country: JP
• Employees: 570
• Sector: Industrials
• Sector Strength: 85
• Industry: Conglomerates
• EPS (TTM): 2.71
• Shares Outstanding: 18,342,089
• 10 Day Avg. Volume: 11,860
• 30 Day Avg. Volume: 11,713
• PEG Ratio: 0.20
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.56
• 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

• Rating: 64 Neutral
• Price Target: ¥490.00 ▲(7.22%Upside)

The overall stock score of 64 reflects a balanced view. The company's strong balance sheet and solid cash flow generation are significant positives. However, operational challenges and lack of revenue growth weigh down the financial performance. The neutral technical indicators and fair valuation suggest limited immediate upside potential.

Nippon Felt Company Limited Business Overview & Revenue Model

Company Description

Nippon Felt Company Limited, founded in 1917 and headquartered in Japan, specializes in the production and sale of industrial felt products. The company operates primarily in the paper industry and is renowned for its high-quality, durable felts used in the papermaking process. Nippon Felt's product lineup includes press felts, dryer felts, and forming fabrics that are essential for various stages of paper production. Beyond the paper sector, the company also caters to other industrial sectors requiring specialized felt products.

How the Company Makes Money

Nippon Felt Company Limited generates revenue primarily through the manufacturing and sale of industrial felt products used in the papermaking industry. Its key revenue streams include the sale of press felts, dryer felts, and forming fabrics, which are integral to the paper production process for enhancing efficiency and quality. The company benefits from long-term relationships with paper manufacturers and other industrial clients who rely on its specialized products. Additionally, the company may engage in partnerships or collaborations with other firms in the industrial felt sector to expand its market reach and product offerings, though specific partnerships or joint ventures are not disclosed.

Nippon Felt Company Limited Financial Statement Overview

Summary

Nippon Felt Company Limited displays a mixed financial performance. The income statement shows declining revenue and shrinking margins, pointing to operational challenges. The balance sheet is strong, with low leverage and a high equity ratio, ensuring financial stability. Cash flow generation is solid but shows signs of pressure on free cash flow. The company should focus on improving operational efficiencies and revenue growth to enhance profitability and maintain its strong balance sheet.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
9.89B	9.70B	10.08B	10.40B	9.84B	10.01B
	Gross Profit
3.10B	3.09B	3.17B	3.50B	3.25B	2.91B
	EBIT
350.22M	200.29M	468.90M	824.51M	629.44M	232.21M
	EBITDA
1.03B	1.12B	1.23B	1.62B	1.24B	1.14B
	Net Income Common Stockholders
438.05M	429.90M	487.51M	750.10M	499.19M	329.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.05B	3.70B	3.96B	5.76B	5.54B	4.96B
	Total Assets
25.01B	25.26B	25.07B	23.59B	22.79B	22.65B
	Total Debt
800.00M	800.00M	801.46M	1.61B	1.62B	1.66B
	Net Debt
-1.85B	-2.50B	-2.76B	-3.42B	-3.14B	-2.45B
	Total Liabilities
4.62B	4.55B	4.70B	5.38B	5.39B	5.36B
	Stockholders Equity
19.95B	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: Negative
• Last Price: 457.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3512, the sentiment is Negative. The current price of 457 is below the 20-day moving average (MA) of 458.20, above the 50-day MA of 456.80, and below the 200-day MA of 467.98, indicating a neutral trend. The MACD of -0.58 indicates Positive momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	¥222.74B	8.11		3.94%	6.59%	18.35%
8014	80 Outperform	¥93.76B	8.05		4.25%	1.25%	21.02%
8157	76 Outperform	¥44.29B	10.22		3.42%	-21.30%	-13.60%
3105	72 Outperform	¥142.33B	8.27	6.67%	3.98%	-2.43%	―
3106	71 Outperform	¥127.37B	14.49		2.41%	-0.43%	42.04%
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%
3512	64 Neutral	¥7.97B	19.17		4.38%	-3.80%	-9.47%