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

• Market Cap: ¥2.36B
• Dividend Yield: N/A
• Average Volume (3M): 682.40K
• Price to Earnings (P/E): 46.3
• Beta (1Y): 0.42
• Revenue Growth: 2.54%
• EPS Growth: N/A
• Country: JP
• Employees: 156
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 55.41
• Shares Outstanding: 8,217,281
• 10 Day Avg. Volume: 145,590
• 30 Day Avg. Volume: 682,400
• PEG Ratio: -0.96
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.17
• P/FCF Ratio: -6.47
• 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: 45 Neutral
• Price Target: ¥287.00 ▲(3.61% Upside)
• Action: Reiterated Date: 03/15/26
• Date: Action: Reiterated 03/15/26

The score is held back primarily by weak earnings quality and persistent negative operating/free cash flow, despite manageable leverage and stabilized revenue. Technical indicators are broadly neutral, offering limited support. Valuation is also a concern given the negative P/E and lack of dividend yield data.

Positive Factors

Manageable leverage

A low debt-to-equity (~0.23) gives NAIGAI structural financial flexibility to fund operations, inventory and working capital while it repairs profitability. Manageable leverage reduces refinancing risk and preserves capacity to absorb temporary cash burn over the next several quarters.

Steady gross margins (mid-30%)

Consistent mid-30% gross margins indicate durable product-level profitability in core legwear/innerwear categories. This margin base provides a buffer against input cost swings and supports potential operating leverage if SG&A discipline and modest revenue growth continue over the medium term.

Revenue recovery and stabilization

Modest but sustained revenue growth (~1.5% in 2026) shows the company has stabilized demand after prior declines. Recovery suggests durable market access across wholesale, retail and e-commerce channels and provides a base to rebuild margins and cash generation if cost control and mix improvements continue.

Negative Factors

Persistent negative operating & free cash flow

Consistent negative operating and free cash flow signals ongoing cash burn and reliance on balance-sheet flexibility or external funding. Over 2–6 months this constrains capital allocation, limits ability to invest in growth initiatives, and raises execution risk if profitability does not improve.

Fragile profitability (operating loss, tiny net margin)

An operating loss and sub‑1% net margin show earnings are highly sensitive to small cost or demand moves. Fragile profitability reduces retained earnings, limits reinvestment capacity, and makes sustainable recovery dependent on structural cost or revenue improvements rather than short-term fixes.

Low returns on equity; prior large losses

Sub‑1% ROE and historical large losses indicate the company has struggled to convert capital into shareholder returns. This reflects structural challenges—pricing, mix or cost base—and suggests a multi-quarter effort is needed to restore consistent profitability and meaningful returns to equity holders.

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 makes money primarily by selling apparel products (notably legwear such as socks/stockings and related innerwear/apparel items) to wholesale and retail channels and directly to consumers. Revenue is generated when NAIGAI supplies products it manufactures itself and/or sources from external manufacturers, earning a margin between production/procurement cost and selling price. Key revenue streams typically include (1) sales of in-house planned products sold under NAIGAI brands, (2) sales of products sold under licensed brands where NAIGAI pays royalties to brand owners and earns product sales margins, and (3) direct-to-consumer sales via e-commerce and other direct channels where the company can capture retail gross margin rather than wholesale margin. Earnings are influenced by product mix (e.g., higher-margin branded/licensed items), seasonality and demand in apparel/legwear categories, distribution strength in domestic retail, inventory management, and sourcing/production efficiency. Specific named partnerships, customer concentration, and segment revenue breakdowns: null.

NAIGAI Co., Ltd. Financial Statement Overview

Summary

Mixed fundamentals: revenue has stabilized and modestly grown, and leverage is manageable, but profitability is thin (operating profit slightly negative in 2026, net margin well under 1%) and cash generation is a major weakness with consistently negative operating and free cash flow.

Income Statement

Revenue has recovered from the 2021–2023 downturn and grew ~1.5% in 2026 (annual), but growth has been modest since 2024. Profitability is the key issue: gross margin is steady in the mid‑30% range, yet operating profit turned slightly negative in 2026 after small positives in 2024–2025. Net income remains positive in 2026 but is very thin (well under 1% margin), following a large loss in 2023—suggesting earnings are still fragile and sensitive to small cost or demand shifts.

Balance Sheet

Leverage looks manageable with debt-to-equity around ~0.23 in 2026 (improved versus earlier years), and equity remains sizable relative to total assets. That said, returns on equity are low (sub‑1% in 2026) and were sharply negative in 2021 and 2023, indicating the balance sheet is currently supporting a business that is not consistently generating strong profits.

Cash Flow

Cash generation is the weakest area: operating cash flow is negative every year shown (including 2026), and free cash flow is also consistently negative, implying ongoing cash burn. While the magnitude of free-cash-flow deficits improved versus 2022–2024, the company is still not self-funding operations and investment, which increases reliance on balance-sheet flexibility and raises execution risk if profitability does not strengthen.

Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	13.16B	13.36B	13.16B	13.02B	12.71B	13.46B
Gross Profit	4.86B	4.87B	4.86B	4.72B	3.87B	5.15B
EBITDA	-25.00M	-87.00M	103.00M	94.00M	-1.06B	17.00M
Net Income	-18.00M	50.00M	100.00M	112.00M	-1.55B	124.00M
Balance Sheet
Total Assets	11.04B	12.36B	11.89B	11.19B	11.35B	11.71B
Cash, Cash Equivalents and Short-Term Investments	3.11B	2.98B	3.54B	3.37B	3.95B	4.13B
Total Debt	1.60B	1.56B	1.67B	1.70B	1.84B	1.43B
Total Liabilities	5.04B	5.48B	5.33B	5.40B	5.57B	4.75B
Stockholders Equity	6.00B	6.87B	6.56B	5.79B	5.78B	6.96B
Cash Flow
Free Cash Flow	0.00	-358.00M	-102.00M	-411.00M	-642.00M	-629.00M
Operating Cash Flow	0.00	-283.00M	-35.00M	-357.00M	-528.00M	-511.00M
Investing Cash Flow	0.00	-60.00M	205.00M	-107.00M	-116.00M	47.00M
Financing Cash Flow	0.00	-224.00M	-75.00M	-156.00M	384.00M	-900.00M

NAIGAI Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 277.00
• 50DMA: Negative
• 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:8013, the sentiment is Negative. The current price of 277 is below the 20-day moving average (MA) of 293.55, below the 50-day MA of 298.88, and below the 200-day MA of 292.62, indicating a bearish trend. The MACD of -1.74 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8013.

NAIGAI Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7564	74 Outperform	¥525.57B	19.71	―	1.04%	10.84%	16.83%
2792	72 Outperform	¥41.52B	10.95	―	3.62%	-0.98%	-29.86%
8227	68 Neutral	¥746.94B	16.45	8.48%	2.02%	―	―
3566	68 Neutral	¥6.93B	13.03	―	0.51%	16.10%	36.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
8013	45 Neutral	¥2.36B	46.31	―	―	2.54%	―
7603	41 Neutral	¥3.33B	-1.51	―	―	-7.88%	-11.22%