UNIFORM NEXT CO. LTD. (3566) AI Stock Analysis

• Market Cap: ¥7.21B
• Dividend Yield: 0.51%
• Average Volume (3M): 8.09K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.14
• Revenue Growth: 16.10%
• EPS Growth: 36.89%
• Country: JP
• Employees: 149
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 16.51
• Shares Outstanding: 10,123,178
• 10 Day Avg. Volume: 11,280
• 30 Day Avg. Volume: 8,086
• PEG Ratio: -1.92
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.62
• P/FCF Ratio: 7.28
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ¥734.00 ▲(10.04% Upside)

The score is driven primarily by solid financial quality—especially the low-leverage balance sheet and improved 2024 cash generation—partly tempered by margin compression and prior free-cash-flow volatility. Technicals are mixed (near-term weakness despite a longer-term uptrend), and valuation is fair but not strongly supported by dividend yield.

Positive Factors

Revenue Growth

Steady revenue growth indicates a resilient business model and strong market position, supporting long-term stability and expansion.

Balance Sheet Strength

A conservative balance sheet with low leverage provides financial flexibility, reducing risk and supporting sustainable operations.

Cash Generation

Improved cash generation enhances financial health, enabling reinvestment in growth opportunities and providing a buffer against downturns.

Negative Factors

Margin Compression

Margin compression can impact profitability and limit reinvestment potential, posing a challenge to maintaining growth and competitive edge.

Free Cash Flow Volatility

Volatile free cash flow can hinder planning and investment, creating uncertainty in financial projections and strategic initiatives.

Declining Net Income

A decline in net income suggests potential operational challenges, affecting profitability and possibly limiting future growth investments.

UNIFORM NEXT CO. LTD. Business Overview & Revenue Model

Company Description

Uniform Next Co., Ltd. sells uniforms to companies, stores, and individuals in Japan. The company offers restaurant uniforms, such as cook coats, lab coats, aprons, T-shirts, polo shirts, samue, and Jinbei products, as well as printing and embroidery on uniforms; workwear work clothes for construction, civil engineering, electricity, machinery, ironwork, transportation, cleaning, factory, and other on-site workwear; and medical wear, including medical examination clothes, casey lab coats, scrubs, and nurse wear. It also offers office clothing that include informs for overblouses, shirts, cut-sews, vests, skirts, culottes, pants, and dresses, as well as accessories. The company offers its products through mail order and visiting sale channels. Uniform Next Co., Ltd. was incorporated in 1994 and is headquartered in Fukui, Japan.

How the Company Makes Money

UNIFORM NEXT CO. LTD. makes money through the direct sale of uniforms and related products to businesses across different industries. The company's revenue model is centered around designing and producing customized uniforms that align with the branding and functional requirements of their clients. Key revenue streams include bulk orders from corporate clients, recurring contracts with healthcare institutions for medical attire, and partnerships with hospitality chains for staff uniforms. Additionally, the company may engage in collaborations with fabric manufacturers and designers to enhance its product offerings and maintain a competitive edge in the market. Revenue is primarily generated through these sales and long-term partnerships, contributing to the company's financial growth.

UNIFORM NEXT CO. LTD. Financial Statement Overview

Summary

Financials show steady revenue growth and consistent profitability, supported by a conservative balance sheet with very low leverage. Key offsets are 2024 margin compression (lower net margin and net income YoY) and historical free-cash-flow volatility despite a strong rebound in 2024.

Income Statement

Revenue has grown steadily from 2019 to 2024 (ending 2024 up ~2.4% year over year), showing a resilient top-line trajectory. Profitability is solid for apparel retail with gross margin holding in the ~36–38% range, but operating and net margins have trended down versus prior years (2024 net margin ~3.9% vs. ~4.8% in 2023), and net income declined year over year in 2024. Overall, the model looks consistently profitable, but recent margin compression is a key watch item.

Balance Sheet

The balance sheet looks conservative with low leverage: debt-to-equity is ~0.12 in 2024 (and was effectively zero in 2023), giving the company flexibility if demand softens. Equity has grown meaningfully over time, supporting a stronger capital base. Returns on equity are healthy (~9–12% across recent years) but stepped down in 2024 versus 2023, consistent with the softer earnings profile.

Cash Flow

Cash generation improved sharply in 2024: operating cash flow rose to 728m and free cash flow turned strongly positive (717m) after a weak 2023 where free cash flow was deeply negative. In most years, free cash flow has been broadly in line with net income (around ~0.8–1.0x), which supports earnings quality; however, the 2023 swing highlights volatility (likely working-capital and/or investment-driven) that investors should not ignore.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.16B	8.39B	7.45B	6.33B	5.12B	4.97B
Gross Profit	2.65B	3.09B	2.78B	2.35B	1.91B	1.87B
EBITDA	630.06M	571.09M	592.10M	480.79M	427.07M	415.04M
Net Income	384.15M	325.01M	354.26M	276.48M	233.22M	223.83M
Balance Sheet
Total Assets	5.65B	4.95B	4.07B	3.71B	3.41B	3.22B
Cash, Cash Equivalents and Short-Term Investments	2.28B	2.36B	1.28B	1.96B	1.69B	1.59B
Total Debt	358.32M	408.33M	0.00	26.70M	123.50M	228.45M
Total Liabilities	2.11B	1.59B	1.02B	988.47M	948.03M	976.93M
Stockholders Equity	3.54B	3.36B	3.05B	2.72B	2.47B	2.24B
Cash Flow
Free Cash Flow	0.00	717.00M	-628.97M	389.02M	232.55M	234.36M
Operating Cash Flow	0.00	728.00M	135.19M	408.18M	253.92M	276.23M
Investing Cash Flow	0.00	-14.53M	-769.51M	-16.85M	-22.45M	33.03M
Financing Cash Flow	0.00	368.38M	-51.68M	-121.73M	-129.82M	-129.84M

UNIFORM NEXT CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 667.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3566, the sentiment is Positive. The current price of 667 is below the 20-day moving average (MA) of 673.35, below the 50-day MA of 675.38, and above the 200-day MA of 615.55, indicating a bullish trend. The MACD of 5.64 indicates Negative momentum. The RSI at 68.19 is Neutral, neither overbought nor oversold. The STOCH value of 63.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3566.

UNIFORM NEXT CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9876	76 Outperform	¥7.01B	6.37	―	―	―	―
3566	70 Outperform	¥7.21B	13.52	―	0.51%	16.10%	36.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8025	49 Neutral	¥5.48B	-22.48	―	2.26%	12.99%	-364.77%
3070	47 Neutral	¥7.74B	-6.40	―	―	80.23%	63.77%
7494	47 Neutral	¥8.32B	17.58	―	4.13%	-10.82%	―
7135	43 Neutral	¥8.48B	-51.53	―	1.34%	-6.68%	92.28%