Seiren Co (3569) AI Stock Analysis

• Market Cap: ¥191.54B
• Dividend Yield: 2.43%
• Average Volume (3M): 115.35K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.66
• Revenue Growth: 6.08%
• EPS Growth: 8.55%
• Country: JP
• Employees: 6,108
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 78.27
• Shares Outstanding: 64,633,650
• 10 Day Avg. Volume: 111,670
• 30 Day Avg. Volume: 115,353
• PEG Ratio: 1.45
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.88
• P/FCF Ratio: 9.52
• 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): 265.3
• Revenue Forecast (FY): ¥167.00B

• Rating: 78 Outperform
• Price Target: ¥3,836.00 ▲(21.78% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by strong fundamentals—healthy and improving margins plus a very low-debt balance sheet—offset by a notable recent decline in free cash flow and weaker cash conversion. Technicals add support with the stock trading above major moving averages and positive momentum, while valuation is reasonable with a modest dividend yield.

Positive Factors

High and Improving Profitability

Sustained high gross and operating margins indicate durable pricing power from value‑added textile processing and functionalization. Improving margin trends support reinvestment capacity and long‑term free cash generation independent of commodity textile pricing cycles.

Conservative Balance Sheet

Very low leverage provides financial flexibility and resilience to industry cyclicality, enabling sustained capex, R&D, or strategic investment without stressing interest costs. This conservatism supports long‑term stability and preserves optionality for growth.

Value‑added, Recurring Business Model

A focus on proprietary processed fabrics and contract manufacturing fosters sticky OEM and tier‑supplier relationships. Technical differentiation in printing/functionalization drives repeat orders and program adoption, supporting durable revenue streams across end markets.

Negative Factors

Weaker Free Cash Flow Conversion

A material drop in FCF and cash conversion reduces internal funding for dividends, capex, or share returns and increases sensitivity to working capital swings. Persistent weaker conversion would constrain financial flexibility and the company’s ability to fund growth from operations.

Volatile Revenue Growth

Irregular or lumpy top‑line growth suggests reliance on one‑off orders or program timing, complicating forecasting and investment decisions. If growth is not sustained, margin leverage and capital allocation plans may underperform expectations over months ahead.

Exposure to Automotive Cyclicality

Heavy exposure to automotive production cycles and OEM program timing creates structural revenue sensitivity. A downturn or loss of program share can materially affect utilization and margins, making long‑term cash and profit visibility more uncertain.

Seiren Co Business Overview & Revenue Model

Company Description

Seiren Co (3569) is a Japanese company specializing in the development and manufacture of high-performance materials, particularly in the fields of automotive, electronics, and textiles. The company is known for its innovative solutions in soundproofing materials, advanced composites, and functional textiles, which cater to various industries including automotive manufacturing, consumer electronics, and industrial applications.

How the Company Makes Money

Seiren Co generates revenue primarily through the sale of its specialized materials and products, which are tailored to meet the needs of its diverse client base. Key revenue streams include the production of automotive interior materials, such as sound-absorbing and insulating products, which are in high demand due to increasing automotive noise regulations and consumer preference for quieter vehicles. Additionally, Seiren Co earns money from its electronics division by providing advanced materials used in electronic devices, where functionality and performance are critical. The company also benefits from long-term partnerships with leading automotive manufacturers and electronics companies, which provide a stable customer base and recurring revenue. Furthermore, Seiren Co invests in research and development to innovate and expand its product offerings, thereby enhancing its competitive edge and driving future growth.

Seiren Co Financial Statement Overview

Summary

Strong profitability (TTM ~27.8% gross margin, ~13.0% EBIT margin, ~9.6% net margin) with improving margin trend over recent years, and a very conservative balance sheet (debt-to-equity ~0.06, ROE ~10.7%). The main drag is weaker recent cash-flow quality: TTM free cash flow fell (~-27%) and is only ~52% of net income, indicating softer conversion/volatility.

Income Statement

TTM (Trailing-Twelve-Months) revenue rose to 164.6B with strong profitability (about 27.8% gross margin, 13.0% EBIT margin, and 9.6% net margin). Margins have generally improved versus prior annual periods (net margin ~6.3% in 2021 to ~8–10% in recent years), indicating better operating efficiency and/or mix. A key weakness is that the latest revenue growth rate shown for TTM (1.218) is unusually high versus the more moderate annual growth pattern, which suggests growth may be more volatile or potentially impacted by one-off effects.

Balance Sheet

The balance sheet looks conservatively financed: TTM debt is 8.6B against 152.4B of equity (debt-to-equity ~0.06), improving materially from 0.43 in 2021. Equity and assets have steadily grown over time, and returns on equity are solid and stable around ~9–11% (TTM ~10.7%). Main limitation: while leverage is low (a positive), returns are good but not exceptionally high, implying the company is not aggressively compounding equity through leverage.

Cash Flow

Cash generation is positive with TTM operating cash flow of 18.8B and free cash flow of 9.8B, but conversion is mixed: free cash flow is only ~52% of net income in TTM (down from ~72% in FY2025). Free cash flow also declined in TTM (about -27% growth), suggesting either higher reinvestment needs or working-capital pressure. A strength is that, across multiple years, the business has generally produced meaningful free cash flow, but the recent step-down reduces confidence in near-term cash consistency.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	164.58B	159.65B	141.91B	132.36B	109.77B	98.69B
Gross Profit	45.73B	44.03B	37.21B	36.74B	32.12B	27.90B
EBITDA	27.56B	25.59B	22.02B	20.31B	16.60B	12.97B
Net Income	15.76B	13.89B	12.16B	11.02B	8.55B	6.25B
Balance Sheet
Total Assets	206.06B	199.22B	187.46B	167.79B	155.49B	144.70B
Cash, Cash Equivalents and Short-Term Investments	38.05B	51.92B	46.93B	39.87B	39.59B	42.63B
Total Debt	8.60B	10.42B	18.90B	25.86B	29.75B	34.35B
Total Liabilities	53.20B	55.34B	62.77B	62.01B	63.65B	63.80B
Stockholders Equity	152.39B	143.37B	124.14B	105.07B	91.23B	80.24B
Cash Flow
Free Cash Flow	9.82B	14.76B	9.19B	4.59B	1.62B	9.73B
Operating Cash Flow	18.77B	20.54B	13.49B	12.94B	9.71B	12.96B
Investing Cash Flow	-16.69B	-11.81B	-5.28B	-9.61B	-8.65B	-1.89B
Financing Cash Flow	-7.79B	-7.80B	-7.05B	-7.01B	-6.62B	12.32B

Seiren Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3150.00
• 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:3569, the sentiment is Positive. The current price of 3150 is below the 20-day moving average (MA) of 3411.50, below the 50-day MA of 3238.20, and above the 200-day MA of 2898.70, indicating a bullish trend. The MACD of 99.09 indicates Negative momentum. The RSI at 60.50 is Neutral, neither overbought nor oversold. The STOCH value of 58.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3569.

Seiren Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3569	78 Outperform	¥191.54B	13.30	10.24%	2.43%	6.08%	8.55%
3110	75 Outperform	¥953.90B	24.76	11.10%	0.99%	9.49%	55.64%
3104	75 Outperform	¥121.70B	24.35	―	1.79%	10.76%	54.82%
3201	74 Outperform	¥127.04B	15.64	―	2.66%	7.56%	-17.12%
3002	66 Neutral	¥150.78B	47.60	2.34%	3.38%	>-0.01%	-49.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3402	58 Neutral	¥1.95T	47.05	3.37%	1.85%	-2.18%	26.45%

Seiren Co Corporate Events

Seiren Posts Double-Digit Profit Growth and Stronger Equity Base for Nine Months to December 2025

Seiren Co., Ltd. reported consolidated net sales of ¥123.45 billion for the nine months ended December 31, 2025, up 4.2% year on year, with operating profit rising 17.8% to ¥15.99 billion and profit attributable to owners of parent increasing 17.5% to ¥12.57 billion. Earnings per share climbed to ¥214.05, while total assets grew to ¥206.07 billion and the equity ratio improved to 73.7%, signaling a stronger balance sheet and enhanced shareholder equity.

Net assets rose to ¥152.87 billion from ¥143.88 billion at the previous fiscal year-end, and comprehensive income expanded 21.9% to ¥13.16 billion, underscoring robust profitability. The higher net assets per share, which advanced to ¥2,583.47 from ¥2,437.38, suggest improved shareholder value and reinforce Seiren’s financial stability heading into the final quarter of the fiscal year.

The most recent analyst rating on (JP:3569) stock is a Buy with a Yen3557.00 price target. To see the full list of analyst forecasts on Seiren Co stock, see the JP:3569 Stock Forecast page.

Seiren Co. Reports Positive Financial Growth in First Half of 2025

Seiren Co., Ltd. reported a positive financial performance for the six months ending September 30, 2025, with net sales increasing by 3.8% compared to the previous year. The company also saw significant growth in operating profit and ordinary profit, indicating strong operational efficiency and market positioning.

The most recent analyst rating on (JP:3569) stock is a Buy with a Yen3435.00 price target. To see the full list of analyst forecasts on Seiren Co stock, see the JP:3569 Stock Forecast page.

Seiren Co. Announces New Company Name Following Strategic Acquisition

Seiren Co., Ltd. has announced the trade name of a new company, NB SEIREN CO., LTD., which will be formed following the acquisition of a business from Unitika Ltd. and Nippon Ester Co., Ltd. This strategic move, set to be completed by January 1, 2026, signifies a rebirth for the company, enhancing its market position and operational capabilities.

The most recent analyst rating on (JP:3569) stock is a Buy with a Yen3435.00 price target. To see the full list of analyst forecasts on Seiren Co stock, see the JP:3569 Stock Forecast page.