WACOAL HOLDINGS (3591) AI Stock Analysis

• Market Cap: ¥236.41B
• Dividend Yield: 2.29%
• Average Volume (3M): 120.81K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.55
• Revenue Growth: -6.04%
• EPS Growth: 146.54%
• Country: JP
• Employees: 17,408
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 243.98
• 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: 112.43
• 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: ¥4,743.00 ▲(3.76% Upside)
• 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

High Gross Margins

Sustained mid‑50% gross margins provide a durable profitability cushion in apparel retail, allowing Wacoal to absorb cost inflation and promotional pressure while still supporting operating profits. High product margins underpin cash generation, funding marketing, R&D and brand investments over the medium term.

Conservative Balance Sheet

Low leverage and a large equity base reduce refinancing risk and increase strategic optionality. This conservative capital structure supports dividend payouts, capex and potential M&A, and helps the firm weather cyclical softness in consumer spending without forcing distress asset sales or deep capital raises.

Positive Free Cash Flow Trend

A rebound to positive FCF in the latest periods indicates the business can generate surplus cash after reinvestment. Reliable cash generation enhances financial flexibility for store/ecommerce investment, brand development and shareholder returns, and helps de‑risk earnings compared with loss‑making peers.

Negative Factors

Contracting Revenue

A shrinking top line undermines scale economics for a branded apparel player: lower sales reduce the ability to spread fixed costs, pressure operating leverage, and make it harder to fund brand, distribution or product development. Persistent revenue decline risks eroding market share and long‑term margin stability.

Uneven Cash Conversion

When FCF materially lags reported net income it signals lower earnings quality and potential working‑capital volatility. Inconsistency in converting accounting profits to cash constrains organic reinvestment, makes dividend or buyback sustainability less certain, and raises vulnerability in tighter liquidity cycles.

Volatile Profitability & Modest ROE

Inconsistent operating results and only modest ROE reflect challenges converting brand strength into reliable shareholder returns. Volatility hampers long‑term planning, reduces investor confidence, and indicates potential structural issues in pricing, product mix or cost control that could limit sustainable value creation.

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 generates revenue primarily through the sale of its intimate apparel products. The company's revenue model is focused on both direct-to-consumer sales through its branded retail stores and e-commerce platforms, as well as wholesale distribution to department stores and specialty retailers. Key revenue streams include the sales of bras, panties, and shapewear, which are often marketed under various brand names, including Wacoal, Playtex, and Vanity Fair. Additionally, WACOAL benefits from strategic partnerships with various retailers that enhance its market reach. The company's emphasis on product innovation and quality helps maintain customer loyalty and allows for premium pricing, which further contributes to its earnings. Seasonal collections and marketing campaigns also play a crucial role in driving sales and brand awareness.

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	172.86B	152.20B
Gross Profit	97.15B	97.44B	104.08B	106.40B	96.25B	84.41B
EBITDA	24.23B	17.30B	3.06B	9.79B	15.90B	17.00B
Net Income	11.69B	6.99B	-8.63B	-1.64B	4.61B	7.03B
Balance Sheet
Total Assets	289.03B	272.18B	294.03B	285.30B	303.25B	322.76B
Cash, Cash Equivalents and Short-Term Investments	36.60B	23.42B	33.55B	26.78B	39.37B	65.25B
Total Debt	31.14B	31.54B	20.64B	20.41B	24.55B	55.10B
Total Liabilities	80.78B	77.29B	78.89B	72.18B	77.19B	104.14B
Stockholders Equity	205.31B	191.82B	211.83B	209.83B	217.99B	215.61B
Cash Flow
Free Cash Flow	5.98B	2.44B	7.91B	2.29B	3.26B	-1.34B
Operating Cash Flow	9.57B	4.94B	11.29B	7.33B	13.01B	4.26B
Investing Cash Flow	29.28B	9.38B	14.05B	3.90B	-3.10B	-2.56B
Financing Cash Flow	-31.82B	-22.93B	-20.21B	-22.54B	-36.35B	33.60B

WACOAL HOLDINGS Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3591, the sentiment is Positive. The current price of 4571 is above the 20-day moving average (MA) of 4553.30, above the 50-day MA of 4480.54, and below the 200-day MA of 5033.06, indicating a neutral trend. The MACD of 22.94 indicates Positive momentum. The RSI at 53.60 is Neutral, neither overbought nor oversold. The STOCH value of 49.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	¥195.02B	13.54	10.24%	2.43%	6.08%	8.55%
3608	68 Neutral	¥55.73B	4.29	17.77%	6.12%	-6.22%	679.61%
3002	66 Neutral	¥154.86B	48.89	2.34%	3.38%	>-0.01%	-49.83%
2685	64 Neutral	¥135.56B	14.93	11.28%	3.59%	3.96%	-36.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3591	59 Neutral	¥236.41B	19.95	5.31%	2.29%	-6.04%	146.54%
3529	57 Neutral	¥17.65B	-9.38	―	―	4.15%	-289.87%

WACOAL HOLDINGS Corporate Events

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.