Matsuoka Corp. Ltd. (3611) AI Stock Analysis

• Market Cap: ¥26.25B
• Dividend Yield: 3.75%
• Average Volume (3M): 42.69K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.86
• Revenue Growth: 6.29%
• EPS Growth: 22.08%
• Country: JP
• Employees: 17,278
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 84.65
• Shares Outstanding: 10,561,600
• 10 Day Avg. Volume: 69,720
• 30 Day Avg. Volume: 42,686
• PEG Ratio: 1.28
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 30.03
• 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: 74 Outperform
• Price Target: ¥2,820.00 ▲(15.43% Upside)

Matsuoka Corp. Ltd. receives a strong overall score due to its robust technical indicators and attractive valuation. Despite some concerns over operational efficiency and cash flow, the company's financial stability and growth potential remain solid. The lack of earnings call data and corporate events does not impact the score significantly.

Positive Factors

Strong recent revenue growth

A 17.28% year-over-year revenue increase indicates durable demand for Matsuoka’s sourcing and production-management services. Sustained top-line growth supports scale economies in procurement, strengthens customer relationships, and provides headroom to invest in process improvements and margin recovery.

End-to-end apparel supply‑chain integration

Matsuoka’s role as an end-to-end supply‑chain integrator and production manager creates a lasting competitive edge: coordination of factories, quality control and logistics builds client stickiness, recurring revenue and the ability to shift production to optimize cost and lead times over cycles.

Relatively strong balance sheet and manageable leverage

A >50% equity ratio and modest 0.42 leverage provide resilience to shocks and flexibility to fund working capital or capex. This financial headroom reduces refinancing risk, supports supplier relationships, and enables strategic investment without immediate pressure on liquidity.

Negative Factors

Sharp decline in free cash flow

A near‑80% decline in free cash flow is a material deterioration in cash generation. Over months this can constrain reinvestment, pressure dividends or shareholder returns, and force more reliance on debt or working‑capital financing, reducing operational flexibility and resilience.

Worsening operational margins and EBIT pressure

Significant EBIT margin decline and modest net margins imply margin compression from cost or efficiency issues. Persisting margin pressure erodes the earnings power of revenue growth, limits reinvestment capacity, and raises sensitivity to cost inflation in procurement and logistics.

High reliance on overseas partner factories

Dependence on overseas production partners creates structural exposure to geopolitical risk, freight disruption, and input‑cost swings. These supply‑chain risks can cause lead‑time variability and higher working‑capital needs, putting sustained pressure on margins and service reliability.

Matsuoka Corp. Ltd. Business Overview & Revenue Model

Company Description

Matsuoka Corporation engages in planning, manufacturing, and selling apparel products in Japan and internationally. The company is involved in sewing formal, casual, work, and inner wear. It also develops and processes fabrics. The company was founded in 1956 and is headquartered in Fukuyama, Japan.

How the Company Makes Money

Matsuoka Corp. Ltd. generates revenue through multiple channels, primarily by producing and selling textile products across various markets. The company's key revenue streams include the sale of apparel, where it supplies clothing to retailers and brands, and the production of industrial textiles used in various applications such as automotive, construction, and medical fields. Additionally, Matsuoka engages in partnerships with other manufacturers and brands to co-develop specialized textiles, enhancing its product offerings and market reach. The company also benefits from economies of scale in production, allowing for competitive pricing and increased profitability.

Matsuoka Corp. Ltd. Financial Statement Overview

Summary

Matsuoka Corp. Ltd. shows strong revenue growth and a stable financial structure. However, declining operational margins and free cash flow highlight potential efficiency challenges and cash generation issues. Continuous monitoring of operational performance and cash flow management is recommended to sustain growth and financial health.

Income Statement

Matsuoka Corp. Ltd. demonstrated a positive revenue growth of 17.28% from 2024 to 2025, indicating strong sales performance. The gross profit margin for 2025 was 9.34%, while the net profit margin was 3.68%, reflecting moderate profitability. EBIT margin decreased significantly compared to previous years, suggesting potential operational challenges. Overall, the income statement shows solid growth but with some pressure on operational efficiency.

Balance Sheet

The company maintains a healthy equity ratio of 51.85% in 2025, indicating financial stability. The debt-to-equity ratio increased to 0.42, which remains manageable but reflects a slight rise in leverage. Return on equity was 6.92%, showing satisfactory returns to shareholders. The balance sheet is stable, though increased debt warrants cautious monitoring.

Cash Flow

Free cash flow experienced a significant decline from 2024 to 2025, decreasing by 79.19%, which raises concerns about cash generation capabilities. The operating cash flow to net income ratio of 1.05 in 2025 is acceptable but lower than previous periods, indicating reduced cash flow efficiency. The company's ability to generate cash remains a concern despite positive operating cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.36B	70.58B	60.18B	62.78B	51.06B	53.93B
Gross Profit	7.05B	6.59B	6.48B	5.79B	4.77B	8.89B
EBITDA	4.62B	6.58B	6.60B	4.89B	2.49B	5.42B
Net Income	2.15B	2.60B	2.46B	1.68B	559.00M	2.76B
Balance Sheet
Total Assets	69.69B	72.45B	65.70B	59.30B	51.88B	43.00B
Cash, Cash Equivalents and Short-Term Investments	19.93B	20.15B	18.00B	15.06B	15.84B	13.11B
Total Debt	16.52B	15.74B	14.35B	14.52B	9.24B	5.60B
Total Liabilities	31.60B	31.92B	29.64B	26.99B	22.44B	16.44B
Stockholders Equity	34.90B	37.56B	33.26B	29.47B	26.85B	24.06B
Cash Flow
Free Cash Flow	0.00	601.00M	2.89B	-6.82B	-1.75B	4.30B
Operating Cash Flow	0.00	2.72B	5.41B	-506.00M	821.00M	6.65B
Investing Cash Flow	0.00	-2.03B	-2.58B	-6.20B	-2.81B	-341.00M
Financing Cash Flow	0.00	705.00M	-753.00M	4.91B	3.15B	-2.35B

Matsuoka Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2443.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3611, the sentiment is Positive. The current price of 2443 is below the 20-day moving average (MA) of 2511.35, above the 50-day MA of 2419.66, and above the 200-day MA of 2069.65, indicating a bullish trend. The MACD of 20.35 indicates Positive momentum. The RSI at 59.97 is Neutral, neither overbought nor oversold. The STOCH value of 77.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3611.

Matsuoka Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7460	77 Outperform	¥28.44B	7.87	―	4.12%	3.07%	67.53%
3611	74 Outperform	¥26.25B	9.28	―	3.75%	6.29%	22.08%
8029	71 Outperform	¥18.98B	11.74	4.29%	3.76%	-6.03%	-9.66%
3501	68 Neutral	¥18.43B	24.80	―	3.46%	1.50%	241.33%
8118	68 Neutral	¥17.44B	23.64	―	1.99%	-3.60%	15.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3529	57 Neutral	¥17.90B	-9.52	―	―	4.15%	-289.87%