WACOAL HOLDINGS (3591) AI Stock Analysis

• Market Cap: ¥211.89B
• Dividend Yield: 2.29%
• Average Volume (3M): 120.81K
• Price to Earnings (P/E): 39.7
• Beta (1Y): 0.57
• Revenue Growth: -6.04%
• EPS Growth: 146.54%
• Country: JP
• Employees: 17,408
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 29.61
• Shares Outstanding: 52,500,000
• 10 Day Avg. Volume: 112,160
• 30 Day Avg. Volume: 120,813
• PEG Ratio: -0.21
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 1.58
• P/FCF Ratio: 112.33
• 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): 322.5
• Revenue Forecast (FY): ¥183.00B

• Rating: 59 Neutral
• Price Target: ¥4,253.00 ▼(-6.96% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by improved profitability and a low-leverage balance sheet, but is held back by contracting revenue and uneven cash conversion. Technical signals are neutral with the stock still below longer-term moving averages, and valuation is moderate with a modest dividend yield.

Positive Factors

Low financial leverage / strong balance sheet

Wacoal's low leverage (debt ~12–16% of equity) and large equity base provide durable financial flexibility, lowering refinancing and solvency risk. This conservatism supports steady investment in products, channels and inventory management through weaker demand cycles over months.

High gross margins and returning profitability

Consistently strong gross margins near the mid-50% range combined with a recent return to net profitability indicate persistent product-level pricing power and cost structure strength. These margin dynamics help sustain earnings even if revenue growth is slow, supporting medium-term earnings resilience.

Rebounded free cash flow

A meaningful rebound to positive free cash flow in the latest annual and TTM periods improves the firm's ability to fund operations, modest capex, dividends and working capital without adding debt. Durable cash generation increases strategic optionality over the next several months.

Negative Factors

Contracting revenue / top-line decline

Sustained and sharp revenue contraction undermines scalability of the business: fixed costs and retail operating leverage can squeeze operating margins and limit reinvestment. Continued top-line shrinkage over months would pressure long-term growth and reduce competitive flexibility.

Uneven cash conversion

Operating cash flow trailing net income and FCF covering only ~50% of net income highlight working-capital swings and weaker cash quality. This unpredictability makes funding dividends, buybacks or investments less reliable and raises execution risk over a 2–6 month horizon.

Volatile operating performance and modest returns

Historical swings to negative net income and only modest ROE indicate inconsistent operational execution. This volatility complicates strategic planning, weakens investor confidence in earnings durability, and raises the likelihood of earnings reversals within the medium-term planning horizon.

WACOAL HOLDINGS Business Overview & Revenue Model

Company Description

Wacoal Holdings Corp. engages in the manufacture, wholesale, and retail sale of intimate apparel, outerwear, sportswear, and other textile products and accessories in Japan, Asia, Oceania, the Americas, and Europe. It operates through Wacoal Business (Domestic), Wacoal Business (Overseas), Peach John Business, and Other Businesses segments. The company offers women's foundation garments, including brassieres and girdles; and lingerie, such as slips, bra-slips, and women's briefs. It also designs, manufactures, and sells nightwear, children's underwear, hosiery, and other apparel and textile goods, as well as provides various other services. In addition, the company engages in the restaurant businesses; cultural and service-related operations; construction of stores and interior design; and production and sale of mannequins. Wacoal Holdings Corp. was founded in 1946 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Wacoal Holdings makes money primarily by selling branded apparel—especially lingerie and innerwear—through a mix of retail and wholesale channels. Revenue is generated from (1) direct-to-consumer sales via company-operated stores and e-commerce, where the company captures the full retail margin; and (2) wholesale sales to department stores, specialty retailers, and other distribution partners, where the company sells products at wholesale prices and earns a wholesale margin. The company also earns revenue through its overseas operations by selling Wacoal-branded and other group-brand products in non-Japanese markets via local subsidiaries and local distribution networks. Additional earnings can come from licensing, collaborations, or other brand-related arrangements, but specific material partnerships or their contribution to earnings are null.

WACOAL HOLDINGS Financial Statement Overview

Summary

Profitability has recovered (net income positive in the latest annual period and TTM) and gross margins remain strong, supported by a conservative balance sheet with low leverage. However, revenue is contracting—especially in TTM—and cash conversion is uneven, with free cash flow covering only about half of TTM net income, limiting confidence in earnings durability.

Income Statement

Profitability has improved versus the prior two years, with net income turning positive in the most recent annual period and remaining positive in TTM (Trailing-Twelve-Months); gross margin is consistently strong around the mid‑50% range, supporting earnings resilience. However, the top line is under pressure: revenue declined in the latest annual period and fell sharply in TTM (Trailing-Twelve-Months), and operating profitability has been volatile across the cycle (including periods of negative net income and weak operating results). Overall, margins are healthy but earnings quality is less compelling given the recent contraction in sales and uneven operating performance.

Balance Sheet

The balance sheet looks conservative, with low leverage (debt roughly 12–16% of equity in the latest periods) and a sizable equity base. This provides flexibility and reduces financial risk in a softer demand environment. The main weakness is that returns on equity are only modest in the latest periods and were negative in earlier years, reflecting inconsistent profitability rather than balance-sheet stress.

Cash Flow

Cash generation is positive, with free cash flow positive in the latest annual period and in TTM (Trailing-Twelve-Months), and TTM (Trailing-Twelve-Months) free cash flow showing a meaningful rebound versus the prior period. That said, cash conversion is mixed: operating cash flow is relatively low versus net income in recent periods, and free cash flow covers only about half of net income in TTM (Trailing-Twelve-Months), suggesting working-capital swings and/or less consistent cash earnings. Prior-year volatility (including negative free cash flow in one period) also tempers confidence.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	170.71B	173.90B	187.21B	188.59B	172.07B	152.20B
Gross Profit	97.15B	87.25B	93.76B	95.38B	86.58B	84.41B
EBITDA	9.90B	8.43B	15.37B	16.47B	11.18B	8.83B
Net Income	11.69B	6.99B	-8.63B	-1.64B	1.73B	7.03B
Balance Sheet
Total Assets	289.03B	272.18B	294.03B	285.66B	299.18B	322.76B
Cash, Cash Equivalents and Short-Term Investments	36.60B	23.42B	33.55B	26.78B	37.48B	65.25B
Total Debt	23.97B	26.84B	20.64B	20.41B	25.30B	55.10B
Total Liabilities	80.78B	77.29B	78.89B	72.18B	78.31B	102.51B
Stockholders Equity	205.31B	191.82B	211.83B	210.20B	217.99B	217.25B
Cash Flow
Free Cash Flow	5.98B	2.44B	9.48B	4.46B	10.00B	1.50B
Operating Cash Flow	9.57B	4.94B	11.29B	7.33B	16.62B	4.26B
Investing Cash Flow	29.28B	9.38B	14.13B	4.30B	-2.93B	-3.92B
Financing Cash Flow	-31.82B	-22.93B	-20.29B	-22.94B	-41.12B	34.97B

WACOAL HOLDINGS Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4571.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3591, the sentiment is Negative. The current price of 4571 is above the 20-day moving average (MA) of 4351.30, above the 50-day MA of 4433.54, and below the 200-day MA of 4985.12, indicating a bearish trend. The MACD of -107.11 indicates Positive momentum. The RSI at 31.97 is Neutral, neither overbought nor oversold. The STOCH value of 13.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3591.

WACOAL HOLDINGS Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3569	78 Outperform	¥169.00B	9.78	10.24%	2.43%	6.08%	8.55%
3608	68 Neutral	¥50.65B	7.26	18.28%	6.12%	-6.22%	679.61%
3002	66 Neutral	¥138.87B	17.53	2.80%	3.38%	>-0.01%	-49.83%
2685	64 Neutral	¥128.50B	9.43	11.70%	3.59%	3.96%	-36.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3591	59 Neutral	¥211.89B	39.72	5.31%	2.29%	-6.04%	146.54%
3529	57 Neutral	¥16.07B	-14.15	―	―	4.15%	-289.87%

WACOAL HOLDINGS Corporate Events

Wacoal Reshapes Top Management as CFO Role Shifts to Hirooka

Wacoal Holdings has announced a reshuffle of its top management, with Representative Director, Vice President and CFO Akira Miyagi resigning as representative director effective April 1, 2026, as part of a broader change in the management structure. Corporate Officer and head of corporate planning, Katsuya Hirooka, will assume the role of corporate officer and CFO from that date, reflecting a shift in financial leadership.

Following the June 29, 2026 ordinary general meeting of shareholders, Hirooka is scheduled to be appointed as director, corporate officer and CFO, consolidating his influence over both board-level oversight and financial operations. At the same meeting, Miyagi will retire from the board, further clarifying the company’s leadership lineup under President and Group CEO Masaaki Yajima as Wacoal adjusts its executive structure for future governance and operational priorities.

The most recent analyst rating on (JP:3591) stock is a Hold with a Yen4743.00 price target. To see the full list of analyst forecasts on WACOAL HOLDINGS stock, see the JP:3591 Stock Forecast page.

Wacoal Lifts Profit Despite Lower Sales and Maintains Full-Year Dividend Outlook

Wacoal Holdings reported consolidated revenue of ¥130.3 billion for the nine months ended December 31, 2025, down 2.4% year on year, but business profit more than doubled and operating profit surged 104%, lifting profit attributable to owners of parent by 51.1% to ¥13.8 billion. Improved profitability, higher comprehensive income, and a stronger equity base, with the equity ratio at 71.0%, underpin the company’s plan to maintain a full‑year dividend of ¥100 per share, even as it forecasts nearly flat annual revenue but sharply higher operating profit and earnings for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:3591) stock is a Hold with a Yen4635.00 price target. To see the full list of analyst forecasts on WACOAL HOLDINGS stock, see the JP:3591 Stock Forecast page.