Sotoh Co., Ltd. (3571) AI Stock Analysis

• Market Cap: ¥9.80B
• Dividend Yield: 5.32%
• Average Volume (3M): 9.96K
• Price to Earnings (P/E): 98.0
• Beta (1Y): 0.38
• Revenue Growth: -1.19%
• EPS Growth: -87.79%
• Country: JP
• Employees: 547
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 22.91
• Shares Outstanding: 13,533,757
• 10 Day Avg. Volume: 9,730
• 30 Day Avg. Volume: 9,963
• PEG Ratio: -0.25
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.86
• P/FCF Ratio: -6.54
• 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: 56 Neutral
• Price Target: ¥791.00 ▼(-0.50% Downside)
• Action: Reiterated Date: 10/31/25
• Date: Action: Reiterated 10/31/25

Sotoh Co., Ltd.'s overall stock score is primarily influenced by its mixed financial performance and technical analysis. The company's strong balance sheet is offset by revenue volatility and cash flow concerns. Technical indicators suggest a lack of strong momentum, and the high P/E ratio indicates potential overvaluation, despite an attractive dividend yield.

Positive Factors

Strong Equity Position

A strong equity position with low leverage enhances financial stability, providing a solid foundation for future growth and investment opportunities.

Commitment to Innovation

Investment in R&D fosters innovation, helping the company maintain a competitive edge and attract new clients, supporting long-term revenue growth.

Diverse Revenue Streams

Diverse revenue streams, including direct sales and long-term contracts, provide stability and reduce dependency on single markets, enhancing resilience.

Negative Factors

Volatile Revenue and Profitability

Volatile revenue and profitability can hinder strategic planning and investment, challenging the company's ability to sustain long-term growth.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to fund operations and invest in growth without external financing.

Decline in Revenue

A decline in revenue signals potential market challenges or competitive pressures, which could impact the company's long-term growth prospects if not addressed.

Sotoh Co., Ltd. Business Overview & Revenue Model

Company Description

Sotoh Co., Ltd. engages in dyeing woolen, composite, and knitted fabrics in Japan. It offers chemical dyeing, hair knitting, and textile dyeing and processing services; and manufactures and sells textiles. The company was incorporated in 1923 and is headquartered in Ichinomiya, Japan.

How the Company Makes Money

Sotoh Co., Ltd. generates revenue through multiple streams, primarily by selling its electronic components to original equipment manufacturers (OEMs) and other industrial clients. The company's revenue model is centered around direct sales of its products, which include semiconductors, capacitors, and other electronic materials. In addition to product sales, Sotoh may also engage in long-term contracts and partnerships with key players in the technology and automotive sectors, providing a stable source of recurring income. Furthermore, the company invests in research and development to innovate new products and improve existing offerings, which helps to attract new clients and retain existing ones. Overall, the combination of diverse product offerings, strategic partnerships, and a focus on quality and innovation are significant contributors to Sotoh's earnings.

Sotoh Co., Ltd. Financial Statement Overview

Summary

Sotoh Co., Ltd. displays mixed financial health. The balance sheet is robust with low leverage and strong equity, but the income statement shows volatility in revenue and profitability. Cash flow issues due to negative free cash flow highlight potential liquidity concerns. The company needs to enhance revenue growth and operational efficiency to sustain its financial stability.

Income Statement

The company shows a decline in revenue from 2024 to 2025, with a negative EBIT margin indicating operating losses. However, there is a net profit in 2025, suggesting some cost efficiencies or non-operating income improvements. Historical revenue growth has been inconsistent, posing a challenge for long-term growth strategies.

Balance Sheet

The company maintains a strong equity position with a high equity ratio and a low debt-to-equity ratio indicating financial stability. The improvement in stockholders' equity over the years is a positive sign, although total assets have not consistently grown, reflecting potential asset management issues.

Cash Flow

The operating cash flow remains positive, albeit lower compared to previous years, indicating operational challenges. Free cash flow is negative, suggesting high capital expenditures or other cash outflows, which could strain the company's liquidity if not managed properly.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.17B	10.04B	10.71B	9.83B	7.51B	7.55B
Gross Profit	943.68M	914.99M	1.30B	452.33M	308.56M	276.38M
EBITDA	480.75M	519.99M	929.06M	28.11M	-32.53M	49.08M
Net Income	285.03M	406.79M	2.70B	-723.43M	-1.13B	-831.87M
Balance Sheet
Total Assets	19.75B	19.92B	18.81B	14.41B	14.71B	15.62B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.90B	3.48B	1.15B	2.75B	2.68B
Total Debt	590.28M	700.59M	516.28M	173.75M	152.00M	171.50M
Total Liabilities	4.95B	5.09B	4.54B	3.85B	3.43B	2.67B
Stockholders Equity	14.80B	14.83B	14.27B	10.57B	11.28B	12.95B
Cash Flow
Free Cash Flow	0.00	-1.32B	-156.48M	-2.15B	-251.11M	-74.91M
Operating Cash Flow	0.00	476.46M	564.99M	-789.05M	-66.45M	1.03B
Investing Cash Flow	0.00	-1.26B	1.90B	-328.35M	169.43M	-421.01M
Financing Cash Flow	0.00	-802.57M	64.91M	-271.83M	-338.85M	-238.26M

Sotoh Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 795.00
• 50DMA: Negative
• 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:3571, the sentiment is Negative. The current price of 795 is below the 20-day moving average (MA) of 796.00, below the 50-day MA of 799.12, and above the 200-day MA of 761.14, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3571.

Sotoh Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3109	72 Outperform	¥13.52B	4.54	―	4.80%	4.49%	26.84%
3320	68 Neutral	¥10.05B	5.80	―	2.77%	-2.28%	36.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3529	57 Neutral	¥16.07B	-14.15	―	―	4.15%	-289.87%
3571	56 Neutral	¥9.80B	98.01	―	5.32%	-1.19%	-87.79%
8166	47 Neutral	¥3.93B	1.99	―	―	-5.25%	-77.53%
9885	44 Neutral	¥5.53B	-0.54	―	2.23%	-0.67%	-453.71%