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Nippon Felt Company Limited (JP:3512)
:3512
Japanese Market
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Nippon Felt Company Limited (3512) AI Stock Analysis

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JP:3512

Nippon Felt Company Limited

(3512)

Rating:60Neutral
Price Target:
¥550.00
▲(10.22%Upside)
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 (3512) vs. iShares MSCI Japan ETF (EWJ)

Nippon Felt Company Limited Business Overview & Revenue Model

Company DescriptionNippon Felt Company Limited (3512) is a Japanese company specializing in the production and sale of industrial felt products and paper machine clothing. The company operates primarily in the sectors of textiles and industrial products, providing essential components used in various manufacturing processes. Its core products include felts for paper manufacturing, high-performance textiles, and other technical fabrics designed to enhance efficiency and performance in industrial applications.
How the Company Makes MoneyNippon 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
65
Positive
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
78
Positive
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
72
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue9.70B10.08B10.40B9.84B10.01B
Gross Profit3.09B3.17B3.50B3.25B2.91B
EBITDA1.12B1.23B1.62B1.24B1.14B
Net Income429.90M487.51M750.10M499.19M329.71M
Balance Sheet
Total Assets25.26B25.07B23.59B22.79B22.65B
Cash, Cash Equivalents and Short-Term Investments3.70B3.96B5.76B5.54B4.96B
Total Debt800.00M801.46M1.61B1.62B1.66B
Total Liabilities4.55B4.70B5.38B5.39B5.36B
Stockholders Equity20.24B19.93B17.81B17.02B16.96B
Cash Flow
Free Cash Flow198.34M109.10M498.98M1.01B630.77M
Operating Cash Flow1.06B611.39M1.06B1.28B1.05B
Investing Cash Flow-753.61M-934.50M-562.01M-251.25M-690.90M
Financing Cash Flow-623.28M-1.33B-262.46M-431.97M411.60M

Nippon Felt Company Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price499.00
Price Trends
50DMA
464.48
Positive
100DMA
465.24
Positive
200DMA
467.30
Positive
Market Momentum
MACD
10.85
Negative
RSI
81.88
Negative
STOCH
93.21
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 499 is above the 20-day moving average (MA) of 472.60, above the 50-day MA of 464.48, and above the 200-day MA of 467.30, indicating a bullish trend. The MACD of 10.85 indicates Negative momentum. The RSI at 81.88 is Negative, neither overbought nor oversold. The STOCH value of 93.21 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
¥235.85B8.58
3.60%6.59%18.36%
80
Outperform
¥50.29B10.99
2.92%-14.87%-0.65%
72
Outperform
€149.29B8.676.67%3.81%-2.43%
71
Outperform
¥134.70B15.32
1.90%-0.43%42.04%
70
Outperform
¥94.38B9.45
3.80%-0.89%-13.53%
60
Neutral
¥8.70B20.93
3.88%-3.80%-9.74%
58
Neutral
HK$14.20B4.67-2.78%5.88%3.78%-54.63%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3512
Nippon Felt Company Limited
515.00
65.48
14.57%
JP:3106
KURABO INDUSTRIES LTD.
8,040.00
4,093.24
103.71%
JP:8014
Chori Co., Ltd.
3,835.00
607.31
18.82%
JP:8020
Kanematsu Corporation
2,850.50
624.38
28.05%
JP:8157
Tsuzuki Denki Co., Ltd.
3,055.00
1,019.09
50.06%
JP:3105
Nisshinbo Holdings
962.00
-1.45
-0.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 31, 2025