NAIGAI Co., Ltd. (8013) AI Stock Analysis

• Market Cap: ¥2.56B
• Dividend Yield: N/A
• Average Volume (3M): 682.40K
• Price to Earnings (P/E): 158.2
• Beta (1Y): 0.38
• Revenue Growth: 2.54%
• EPS Growth: N/A
• Country: JP
• Employees: 156
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): -9.05
• Shares Outstanding: 8,217,281
• 10 Day Avg. Volume: 145,590
• 30 Day Avg. Volume: 682,400
• PEG Ratio: -1.66
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -17.49
• 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: 57 Neutral
• Price Target: ¥314.00 ▲(13.36% Upside)

The score is supported primarily by a solid balance sheet and improving operating margins, but it is held back by ongoing negative free cash flow and an extremely high P/E valuation. Technicals are constructive yet overextended (RSI > 70), adding near-term risk.

Positive Factors

Balance Sheet Strength

A strong equity base and low debt-to-equity ratio provide financial stability, allowing NAIGAI to withstand economic fluctuations and invest in growth opportunities.

Revenue Growth

Consistent revenue growth, even if modest, indicates NAIGAI's ability to expand its market presence and adapt to customer demands, supporting long-term business sustainability.

Margin Recovery

Improving EBIT margins reflect better operational efficiency and cost control, which can lead to enhanced profitability and competitiveness over time.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow indicates challenges in generating cash from operations, potentially limiting NAIGAI's ability to fund growth and manage financial obligations.

Thin Profit Margins

Thin profit margins suggest limited pricing power and cost pressures, which can constrain profitability and reduce the company's ability to reinvest in its business.

Cash Flow Management Issues

Negative cash flow ratios highlight difficulties in cash conversion, which may affect NAIGAI's liquidity and its capacity to support ongoing operations and strategic initiatives.

NAIGAI Co., Ltd. Business Overview & Revenue Model

Company Description

Naigai Co.,Ltd. plans, manufactures, wholesales, imports, and exports textile products. It offers men's, ladies, and children's socks, panty stockings, etc. The company was founded in 1920 and is headquartered in Tokyo, Japan.

How the Company Makes Money

NAIGAI Co., Ltd. generates revenue through the sale of its hosiery products, which are distributed across various channels, including direct sales to retailers, online platforms, and through its own branded stores. The company's key revenue streams include wholesale distribution to department stores and specialty shops, as well as retail sales through e-commerce and physical locations. NAIGAI also benefits from strategic partnerships and licensing agreements that allow it to expand its product offerings and market reach. Additionally, the company invests in product innovation and marketing to maintain its competitive edge and attract a diverse customer base.

NAIGAI Co., Ltd. Financial Statement Overview

Summary

NAIGAI Co., Ltd. shows signs of recovery with improving EBIT and EBITDA margins, alongside stable revenue growth. The balance sheet is robust, marked by low leverage and a solid equity base. However, the company faces challenges in cash flow management, with consistent negative free cash flow indicating liquidity concerns.

Income Statement

The company shows a positive trend in revenue growth with a recent increase of 1.08%. The gross profit margin remains stable at around 37%, reflecting efficient cost control relative to sales. However, the net profit margin is thin at 0.76%, indicating limited profitability. EBIT margin improved significantly from -9.3% in 2023 to 0.43% in 2025, suggesting better operational efficiency, but it remains low. The EBITDA margin is modest at 0.78%, showing some recovery from past losses.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 55.2%, indicating financial stability. The debt-to-equity ratio is low at 0.25, reflecting conservative leverage. Return on equity improved to 1.52%, which is a positive sign of increasing profitability, though still on the lower side.

Cash Flow

The company struggles with negative free cash flow, although there has been a notable improvement from -426 million to -102 million yen. The operating cash flow to net income ratio is negative, signaling challenges in converting profits into cash. The free cash flow to net income ratio is also negative, indicating ongoing cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.16B	13.16B	13.02B	12.71B	13.46B	11.69B
Gross Profit	4.86B	4.88B	4.78B	3.97B	5.25B	3.78B
EBITDA	-99.00M	202.00M	228.00M	-1.39B	221.00M	-1.72B
Net Income	-18.00M	100.00M	112.00M	-1.55B	124.00M	-1.84B
Balance Sheet
Total Assets	11.04B	11.89B	11.19B	11.35B	11.71B	11.77B
Cash, Cash Equivalents and Short-Term Investments	3.11B	3.54B	3.37B	3.95B	4.13B	5.45B
Total Debt	1.60B	1.67B	1.70B	1.84B	1.43B	2.33B
Total Liabilities	5.05B	5.33B	5.40B	5.57B	4.75B	5.08B
Stockholders Equity	6.00B	6.56B	5.79B	5.78B	6.96B	6.70B
Cash Flow
Free Cash Flow	0.00	-102.00M	-411.00M	-642.00M	-629.00M	-414.00M
Operating Cash Flow	0.00	-35.00M	-357.00M	-528.00M	-511.00M	-321.00M
Investing Cash Flow	0.00	205.00M	-107.00M	-116.00M	47.00M	-104.00M
Financing Cash Flow	0.00	-75.00M	-156.00M	384.00M	-900.00M	2.10B

NAIGAI Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 277.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8013, the sentiment is Positive. The current price of 277 is below the 20-day moving average (MA) of 289.15, below the 50-day MA of 284.56, and below the 200-day MA of 283.88, indicating a bullish trend. The MACD of 6.73 indicates Negative momentum. The RSI at 70.01 is Negative, neither overbought nor oversold. The STOCH value of 90.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8013.

NAIGAI Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9271	60 Neutral	¥6.17B	11.11	―	―	30.82%	77.42%
3607	58 Neutral	¥2.92B	5.69	―	3.19%	2.81%	59.43%
8013	57 Neutral	¥2.56B	158.23	―	―	2.54%	―
2778	52 Neutral	¥1.54B	-22.47	―	―	-6.40%	-590.11%
8025	49 Neutral	¥5.57B	-22.85	―	2.26%	12.99%	-364.77%
7603	42 Neutral	¥4.23B	-1.78	―	―	-7.88%	-11.22%