Nippon Felt Company Limited (3512) AI Stock Analysis

• Market Cap: ¥10.29B
• Dividend Yield: 3.39%
• Average Volume (3M): 15.25K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.35
• Revenue Growth: -5.08%
• EPS Growth: -3.36%
• Country: JP
• Employees: 570
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 9.52
• 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

• Rating: 66 Neutral
• Price Target: ¥629.00 ▲(6.61% Upside)

The overall stock score of 66.1 reflects a mixed financial performance with strong balance sheet fundamentals but declining revenue and margins. Technical analysis shows mild bullish momentum, while valuation metrics suggest the stock is moderately overvalued. The absence of earnings call insights and corporate events limits additional context.

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: 590.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 590 is below the 20-day moving average (MA) of 591.30, above the 50-day MA of 577.81, and above the 200-day MA of 491.67, indicating a neutral trend. The MACD of 1.68 indicates Positive momentum. The RSI at 54.07 is Neutral, neither overbought nor oversold. The STOCH value of 53.97 is Neutral, 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
8157	80 Outperform	¥51.27B	10.95	―	2.94%	-14.87%	-0.65%
8020	75 Outperform	¥252.55B	9.34	―	3.33%	3.81%	7.15%
3106	74 Outperform	¥122.78B	10.30	―	3.13%	-2.16%	69.82%
8014	72 Outperform	¥93.15B	9.20	―	3.59%	-0.89%	-13.53%
3105	70 Outperform	¥187.05B	15.40	5.13%	2.98%	-0.47%	―
3512	66 Neutral	¥10.29B	23.54	―	3.39%	-5.08%	-3.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%