Kyowa Leather Cloth Co., Ltd. (3553) AI Stock Analysis

• Market Cap: ¥19.26B
• Dividend Yield: 4.05%
• Average Volume (3M): 41.81K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.97
• Revenue Growth: 8.38%
• EPS Growth: -43.33%
• Country: JP
• Employees: 1,395
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals
• EPS (TTM): -1.56
• Shares Outstanding: 24,500,000
• 10 Day Avg. Volume: 36,250
• 30 Day Avg. Volume: 41,806
• PEG Ratio: -0.46
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -155.89
• 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: ¥883.00
• Price Target Upside: 11.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: ¥883.00 ▲(11.77%Upside)

Kyowa Leather Cloth Co., Ltd. benefits from solid financial performance and strong technical momentum. The stock's valuation is reasonable, with an attractive dividend yield. However, potential overbought conditions could lead to short-term volatility.

Kyowa Leather Cloth Co., Ltd. Business Overview & Revenue Model

Company Description

Kyowa Leather Cloth Co., Ltd. (3553) is a Japanese company specializing in the production and sale of synthetic leather and related products. The company operates primarily in the materials sector, providing a wide range of high-quality synthetic leather products used in various industries including automotive, fashion, and interior design. With a strong focus on innovation and sustainability, Kyowa Leather Cloth Co., Ltd. is committed to delivering durable and environmentally friendly materials to its customers worldwide.

How the Company Makes Money

Kyowa Leather Cloth Co., Ltd. generates revenue through the manufacture and sale of synthetic leather products. The company's key revenue streams include supplying automotive manufacturers with interior materials, such as seat covers and door trims, which are essential for vehicle production. Additionally, Kyowa Leather Cloth Co., Ltd. caters to the fashion and interior design sectors, offering a diverse range of products for apparel, accessories, and home furnishings. The company's earnings are also supported by strategic partnerships with major manufacturers and suppliers, enabling it to expand its market reach and enhance its product offerings.

Kyowa Leather Cloth Co., Ltd. Financial Statement Overview

Summary

Kyowa Leather Cloth Co., Ltd. showcases stable revenue growth and a strong balance sheet, backed by efficient operations. However, challenges in cash flow management, particularly in free cash flow generation, warrant attention.

Income Statement

Kyowa Leather Cloth Co., Ltd. has demonstrated a stable revenue growth trajectory with a noticeable increase from 2024 to 2025. The gross profit margin is relatively strong, although there was a slight decline in net profit margin in 2025, indicating some pressure on profitability. EBIT and EBITDA margins have shown resiliency, supporting the company's operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating conservative leverage and financial stability. The equity ratio is robust, reflecting a solid capital structure. However, the slight decrease in total assets and equity from 2024 to 2025 could be a point of concern if the trend continues.

Cash Flow

Kyowa Leather Cloth Co., Ltd. experienced a significant drop in free cash flow in 2025, raising concerns about cash generation capabilities. The operating cash flow to net income ratio remains positive, indicating reasonable cash conversion, but the free cash flow to net income ratio highlights the need for improved capital expenditure management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	53.32B	56.40B	52.04B	45.79B	47.07B	41.18B
Gross Profit	9.74B	9.80B	9.94B	7.28B	8.56B	7.54B
EBITDA	3.72B	4.22B	5.32B	2.79B	4.33B	3.83B
Net Income	1.45B	1.10B	1.96B	347.00M	1.68B	1.44B
Balance Sheet
Total Assets	59.99B	59.47B	60.65B	52.95B	54.27B	52.64B
Cash, Cash Equivalents and Short-Term Investments	13.34B	11.13B	14.77B	10.71B	10.58B	11.66B
Total Debt	368.00M	390.00M	358.00M	342.00M	433.00M	698.00M
Total Liabilities	22.37B	22.07B	23.08B	18.42B	19.60B	19.20B
Stockholders Equity	36.30B	36.23B	36.33B	33.49B	33.79B	32.69B
Cash Flow
Free Cash Flow	0.00	-2.44B	4.33B	-81.00M	276.00M	1.10B
Operating Cash Flow	0.00	1.33B	7.11B	2.96B	2.97B	2.75B
Investing Cash Flow	0.00	-4.49B	-1.92B	-1.94B	-2.75B	-2.37B
Financing Cash Flow	0.00	-1.29B	-587.00M	-703.00M	-1.42B	-781.00M

Kyowa Leather Cloth Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 790.00
• 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:3553, the sentiment is Positive. The current price of 790 is above the 20-day moving average (MA) of 781.15, above the 50-day MA of 768.92, and above the 200-day MA of 688.46, indicating a bullish trend. The MACD of 5.58 indicates Positive momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 74.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3553.

Kyowa Leather Cloth Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4041	78 Outperform	¥183.15B	12.03		4.87%	0.50%	-8.77%
4463	78 Outperform	¥19.89B	7.32		4.75%	8.23%	37.45%
5013	77 Outperform	¥29.06B	6.72		6.29%	4.77%	43.65%
3553	76 Outperform	¥19.26B	17.06		4.05%	8.38%	-43.33%
4960	61 Neutral	¥4.27B	32.58		1.35%	5.14%	1.96%
Sector *	58 Neutral	kr30.13B	-5.32	-5.02%	6.03%	6.97%	5.26%
5142	45 Neutral	¥15.68B	35.55		1.84%	0.62%	―