Nippon Felt Company Limited (3512) AI Stock Analysis

• Market Cap: ¥10.79B
• Dividend Yield: 3.23%
• Average Volume (3M): 18.09K
• Price to Earnings (P/E): 25.0
• 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: 23,589
• 30 Day Avg. Volume: 18,089
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: -11.15% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: ¥550.00 ▼(-11.15% 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 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 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'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	9.70B	9.70B	10.08B	10.40B	9.84B	10.01B
Gross Profit	2.96B	3.09B	3.17B	3.50B	3.25B	2.91B
EBITDA	873.41M	1.12B	1.23B	1.62B	1.24B	1.14B
Net Income	430.60M	429.90M	487.51M	750.10M	499.19M	329.71M
Balance Sheet
Total Assets	25.26B	25.26B	25.07B	23.59B	22.79B	22.65B
Cash, Cash Equivalents and Short-Term Investments	3.70B	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	4.55B	4.55B	4.70B	5.38B	5.39B	5.36B
Stockholders Equity	20.24B	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: 619.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 619 is above the 20-day moving average (MA) of 588.09, above the 50-day MA of 546.23, and above the 200-day MA of 481.32, indicating a bullish trend. The MACD of 21.69 indicates Negative momentum. The RSI at 74.10 is Negative, neither overbought nor oversold. The STOCH value of 64.03 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	¥55.55B	12.14	10.79%	2.87%	-14.87%	-0.65%
8020	79 Outperform	¥261.57B	9.68	15.15%	3.35%	3.81%	7.15%
8014	75 Outperform	¥95.61B	9.57	12.67%	3.66%	-0.89%	-13.53%
3105	72 Outperform	¥180.60B	14.62	3.81%	3.16%	-0.47%	―
3106	65 Neutral	¥119.20B	9.79	7.52%	3.27%	-2.16%	69.82%
3512	60 Neutral	¥10.79B	25.04	―	3.23%	-5.08%	-3.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%