Matsuoka Corp. Ltd. (3611) AI Stock Analysis

• Market Cap: ¥25.95B
• Dividend Yield: 3.75%
• Average Volume (3M): 42.69K
• Price to Earnings (P/E): 10.5
• 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): 77.44
• Shares Outstanding: 10,586,600
• 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: ¥2,874.00 ▲(17.64% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

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

Integrated supply-chain services

Matsuoka's role as an end-to-end supply-chain integrator (planning, sourcing, production management, logistics) creates durable recurring revenue from outsourcing relationships. This intermediary model captures procurement and coordination value, supports scale benefits and repeat business over time.

Sustained revenue growth

Strong year-over-year top-line growth reflects rising demand for outsourced apparel production and successful client retention. Durable revenue expansion improves bargaining power with suppliers, supports fixed-cost absorption, and provides a foundation for margin recovery if operational efficiency is restored.

Stable balance-sheet posture

A solid equity ratio and manageable leverage provide financial flexibility for working-capital needs and regional production shifts. The balance-sheet stability reduces solvency risk during apparel cycles and enables targeted investment or buffering against supplier disruptions without excessive refinancing pressure.

Negative Factors

Margin compression

Significantly lower EBIT and modest net margins indicate operational inefficiencies or cost pressure. Persistently compressed margins limit reinvestment, reduce buffer against input-cost inflation, and make profitability sensitive to procurement or logistics disruptions unless operational controls are improved.

Weak free cash flow generation

A near-80% drop in free cash flow signals weaker cash conversion and elevated working-capital or capex demands. Sustained FCF weakness constrains dividends, debt reduction and investment in efficiency projects, raising execution risk for growth and margin-recovery initiatives over the medium term.

Declining EPS

Negative EPS growth points to earnings pressure despite revenue gains, reflecting margin and cash conversion issues. Continued EPS decline can limit financial flexibility, reduce shareholder returns, and signal that topline expansion is not translating into sustainable profitability without structural fixes.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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 2539.30, below the 50-day MA of 2506.24, and above the 200-day MA of 2138.48, indicating a neutral trend. The MACD of 2.86 indicates Positive momentum. The RSI at 50.53 is Neutral, neither overbought nor oversold. The STOCH value of 79.39 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
3569	78 Outperform	¥196.10B	13.54	10.24%	2.43%	6.08%	8.55%
3104	75 Outperform	¥120.03B	24.35	―	1.79%	10.76%	54.82%
3201	74 Outperform	¥128.02B	15.85	―	2.66%	7.56%	-17.12%
3611	74 Outperform	¥25.95B	10.53	―	3.75%	6.29%	22.08%
3109	72 Outperform	¥14.22B	9.97	―	4.80%	4.49%	26.84%
3501	68 Neutral	¥19.87B	27.62	―	3.46%	1.50%	241.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Matsuoka Corp. Ltd. Corporate Events

Matsuoka Posts Higher Sales and Stronger Operating Profit but Lower Net Income in Nine-Month Results

Matsuoka Corporation reported consolidated net sales of ¥54.29 billion for the nine months ended December 31, 2025, up 2.7% year on year, with operating profit nearly doubling to ¥1.36 billion and ordinary profit rising 4.4% to ¥3.79 billion, while profit attributable to owners of parent slipped 3.3% to ¥2.03 billion and comprehensive income dropped sharply. The company’s equity ratio weakened to 49.1% as net assets declined slightly, but it maintained its dividend stance with a planned full-year payout of ¥90 per share and confirmed its full-year forecast, targeting ¥74 billion in net sales and a 476.2% jump in operating profit, signaling confidence in earnings recovery despite near-term profit pressure.

The most recent analyst rating on (JP:3611) stock is a Buy with a Yen2957.00 price target. To see the full list of analyst forecasts on Matsuoka Corp. Ltd. stock, see the JP:3611 Stock Forecast page.