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Kyowa Leather Cloth Co., Ltd. (JP:3553)
:3553
Japanese Market
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Kyowa Leather Cloth Co., Ltd. (3553) AI Stock Analysis

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JP:3553

Kyowa Leather Cloth Co., Ltd.

(3553)

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Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
¥931.00
▲(8.38% Upside)
Action:Reiterated
Date:05/10/26
The score is anchored by strong balance-sheet stability but held back by deteriorating cash flow and weaker profitability. Technicals are bearish (below key moving averages with negative MACD), while valuation is a partial offset due to the high dividend yield and a moderate P/E.
Positive Factors
Conservative Balance Sheet
Extremely low leverage and a sizable equity base provide durable financial flexibility and downside protection. This balance-sheet strength supports continued capital spending, weathering demand swings, maintaining supplier confidence, and funding strategic moves without relying on costly external debt.
Negative Factors
Weak Cash Generation
A sharp decline in operating cash flow and consecutive deeply negative free cash flows undermine the firm's ability to fund operations, capex, dividends or pay down liabilities from internal sources. Sustained weak cash conversion raises financing and liquidity risk over months ahead.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage and a sizable equity base provide durable financial flexibility and downside protection. This balance-sheet strength supports continued capital spending, weathering demand swings, maintaining supplier confidence, and funding strategic moves without relying on costly external debt.
Read all positive factors

Kyowa Leather Cloth Co., Ltd. (3553) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Kyowa Leather Cloth Co., Ltd. (3553) is a leading manufacturer specializing in synthetic leather and related materials. The company operates primarily in the textile and fashion sectors, providing high-quality products for various applications, in...
How the Company Makes Money
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Kyowa Leather Cloth Co., Ltd. Financial Statement Overview

Summary
Balance sheet strength is a clear positive (very low leverage), but operating performance has softened (stalling revenue, materially lower EBIT and net margins) and cash flow is the key weakness with recently negative free cash flow and weaker cash conversion.
Income Statement
52
Neutral
Balance Sheet
82
Very Positive
Cash Flow
38
Negative
BreakdownTTMMar 2025Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue56.43B55.82B56.40B52.04B45.79B47.07B
Gross Profit9.73B8.89B9.80B9.72B7.09B8.31B
EBITDA4.25B3.63B4.67B5.17B2.79B4.33B
Net Income781.00M655.00M1.10B1.96B348.00M1.68B
Balance Sheet
Total Assets56.39B57.46B60.50B61.84B53.58B54.92B
Cash, Cash Equivalents and Short-Term Investments10.73B8.14B11.13B14.77B10.71B10.58B
Total Debt569.00M983.00M595.00M358.00M456.00M544.00M
Total Liabilities19.57B19.82B23.09B24.27B19.05B20.24B
Stockholders Equity35.69B36.57B36.23B36.33B33.49B33.79B
Cash Flow
Free Cash Flow0.00-4.11B-2.44B4.52B248.00M476.00M
Operating Cash Flow0.00799.00M1.33B7.11B2.96B2.97B
Investing Cash Flow0.00-3.23B-4.49B-1.92B-1.94B-2.75B
Financing Cash Flow0.00-661.00M-1.29B-587.00M-703.00M-1.42B

Kyowa Leather Cloth Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price859.00
Price Trends
50DMA
932.47
Negative
100DMA
1004.96
Negative
200DMA
930.09
Negative
Market Momentum
MACD
-17.26
Negative
RSI
40.82
Neutral
STOCH
63.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3553, the sentiment is Negative. The current price of 859 is below the 20-day moving average (MA) of 886.05, below the 50-day MA of 932.47, and below the 200-day MA of 930.09, indicating a bearish trend. The MACD of -17.26 indicates Negative momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 63.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3553.

Kyowa Leather Cloth Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
¥45.18B8.513.53%-7.83%13.79%
74
Outperform
¥132.47B49.210.67%8.51%-17.90%
73
Outperform
¥187.27B13.864.41%3.80%-4.32%27.07%
67
Neutral
¥103.06B13.183.88%-8.00%-7.64%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
56
Neutral
¥17.53B7.861.39%3.43%490.61%
55
Neutral
¥21.58B32.054.09%-1.03%-40.31%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3553
Kyowa Leather Cloth Co., Ltd.
881.00
136.04
18.26%
JP:4045
Toagosei Co
1,759.00
417.45
31.12%
JP:4189
KH Neochem Co.,Ltd.
2,778.00
387.06
16.19%
JP:4970
Toyo Gosei Co., Ltd.
16,690.00
12,177.99
269.90%
JP:5013
Yushiro Chemical Industry Co., Ltd.
3,320.00
1,393.57
72.34%
JP:5142
Achilles Corporation
1,217.00
32.51
2.74%
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: May 10, 2026