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

• Market Cap: ¥21.22B
• Dividend Yield: 3.7%
• Average Volume (3M): 72.84K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.95
• Revenue Growth: 6.72%
• EPS Growth: -62.36%
• Country: JP
• Employees: 1,395
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 1.40
• Shares Outstanding: 24,500,000
• 10 Day Avg. Volume: 38,510
• 30 Day Avg. Volume: 72,843
• PEG Ratio: -0.35
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.30
• P/FCF Ratio: -6.92
• 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: 76 Outperform
• Price Target: ¥883.00 ▲(2.79% 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. engages in the manufacturing, processing, and selling of various synthetic resin products Japan and internationally. The company offers automotive products, such as polyurethane products, including LUMISH, Silfie, Le Coeur, and Aquawish for use in seats, door trims, consoles, etc.; olefin products comprising TPO composite materials and sheets used in door trims, instrument panels, consoles, etc.; polyvinyl chloride (PVC) products consisting of Soft leather, PVC leather and sheets, and PVC composite materials for use in seats, door trims, consoles, interior/exterior parts for decoration, etc.; and interior/exterior decorative film for roofs. It also provides housing products, which include interior materials, such as CRONOS, CRONOS EF, Vi-pla S, and Vi-pla OL for interior applications, kitchens, modular bathrooms, wall covering materials, etc.; and exterior materials, such as CRONOS and CRONOS EF for entrance doors, closets, rooftop waterproofing, etc. In addition, the company offers fashion and lifestyle products, including polyurethane synthetic leather products comprising PVC leather, CARAVEL, and Daphne for use in handbags, tote bags, accessories, women's shoes, boots, sandals, slippers, office chairs, chairs for use in large facilities, reception room furniture sets, etc. Kyowa Leather Cloth Co., Ltd. was founded in 1935 and is headquartered in Hamamatsu, Japan.

How the Company Makes Money

Kyowa Leather Cloth Co., Ltd. generates revenue through the production and sale of synthetic leather materials. The company's key revenue streams include supplying automotive manufacturers with materials for car interiors, such as seat covers and dashboard surfaces. Additionally, the company serves the fashion industry by providing synthetic leather for clothing, accessories, and footwear. The industrial sector also contributes to its earnings, using the company's products for furniture upholstery and other applications. Kyowa Leather Cloth Co., Ltd. benefits from long-term partnerships with major automotive and fashion brands, as well as a strong focus on research and development to innovate new products that meet emerging market demands. These factors, combined with an emphasis on sustainability and quality, play a significant role in the company's financial performance.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.43B	56.40B	52.04B	45.79B	47.07B	41.18B
Gross Profit	9.45B	9.80B	9.94B	7.28B	8.56B	7.54B
EBITDA	3.30B	4.22B	5.32B	3.14B	4.33B	3.83B
Net Income	781.00M	1.10B	1.96B	347.00M	1.68B	1.44B
Balance Sheet
Total Assets	56.39B	59.47B	60.65B	52.95B	54.27B	52.64B
Cash, Cash Equivalents and Short-Term Investments	10.73B	11.13B	14.77B	10.71B	10.58B	11.66B
Total Debt	569.00M	390.00M	358.00M	342.00M	433.00M	698.00M
Total Liabilities	19.57B	22.07B	23.08B	18.42B	19.60B	19.20B
Stockholders Equity	35.69B	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: 859.00
• 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 859 is below the 20-day moving average (MA) of 860.47, above the 50-day MA of 853.21, and above the 200-day MA of 741.64, indicating a bullish trend. The MACD of 3.13 indicates Positive momentum. The RSI at 57.34 is Neutral, neither overbought nor oversold. The STOCH value of 69.70 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
4463	78 Outperform	¥23.36B	9.26	―	3.84%	6.41%	-3.59%
3553	76 Outperform	¥21.22B	26.46	―	3.70%	6.72%	-62.36%
5013	72 Outperform	¥29.17B	5.86	―	4.56%	3.47%	33.32%
4041	70 Outperform	¥187.06B	13.18	―	4.50%	3.26%	-13.75%
4960	64 Neutral	¥5.28B	35.08	―	1.09%	-5.30%	-6.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5142	52 Neutral	¥18.40B	27.20	―	1.53%	-0.12%	―