KURABO INDUSTRIES LTD. (3106) AI Stock Analysis

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KURABO INDUSTRIES LTD.

(TSE/TYO:3106)

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Rating:78Outperform

Price Target:JPY 2,360.00▲(10.64% Upside)

Action:reiterated

Date:09/30/26

The score is driven primarily by improving profitability and a strong, low-leverage balance sheet, supported by an established uptrend in the price. A very high dividend yield further boosts the valuation profile. The main constraints are recent revenue declines and somewhat uneven cash-flow conversion.

Positive Factors

Improving ProfitabilityMaterial margin expansion indicates stronger earnings efficiency and a greater contribution from profitable products or operations. If retained, the improvement can support reinvestment, resilience against cost pressure, and more durable earnings generation over the next several quarters.

Negative Factors

Persistent Revenue ContractionSeveral consecutive years of declining revenue indicate that improved profitability has not yet been matched by renewed top-line momentum. Continued contraction could limit operating scale, weaken market position, and make future margin gains harder to sustain.

KURABO INDUSTRIES LTD. (3106) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 167.80B
Dividend Yield: 9.34%
Average Volume (3M): 178.87K
Price to Earnings (P/E): 11.4
Beta (1Y): 1.11
Revenue Growth: 1.96%
EPS Growth: 32.98%
Country: Japan
Employees: 3,714
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

KURABO INDUSTRIES LTD. Business Overview & Revenue Model

Company Description

Established in Osaka, Japan, in 1888, Kurabo Industries Ltd. is a multifaceted corporation with a global presence, engaged in an extensive array of business segments including textiles, chemicals, technology, food, services, and real estate. In its t...

How the Company Makes Money

Kurabo makes money primarily by selling products and services across its business segments. (1) Textiles and textile-related operations generate revenue from the manufacture and sale of yarns, fabrics, and other textile products, typically to apparel...

KURABO INDUSTRIES LTD. Financial Statement Overview

Summary

Profitability has improved materially (net margin up to ~9.0% in FY2026 and gross margin rising to ~21.5%), and the balance sheet is conservatively financed with declining leverage (debt-to-equity ~0.06). Offsets include recent revenue contraction (negative growth in FY2024–FY2026) and uneven cash conversion, with operating cash flow often light versus earnings and FY2023 free cash flow negative.

Income Statement

72Positive

Balance Sheet

84Very Positive

Cash Flow

63Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	145.63B	143.76B	150.66B	151.31B	153.52B	132.22B
Gross Profit	31.80B	30.88B	31.66B	30.33B	29.45B	27.35B
EBITDA	17.39B	14.20B	17.25B	15.97B	13.15B	13.80B
Net Income	11.49B	12.88B	9.01B	6.74B	5.52B	5.60B
Balance Sheet
Total Assets	207.15B	201.84B	190.53B	192.79B	174.09B	167.28B
Cash, Cash Equivalents and Short-Term Investments	14.77B	15.53B	15.19B	16.16B	10.39B	14.12B
Total Debt	7.39B	7.61B	10.95B	12.34B	15.41B	13.20B
Total Liabilities	70.20B	68.17B	69.34B	74.71B	71.18B	69.87B
Stockholders Equity	135.51B	132.19B	119.81B	116.85B	101.33B	96.02B
Cash Flow
Free Cash Flow	0	8.51B	5.46B	8.27B	-2.02B	5.76B
Operating Cash Flow	0	14.59B	11.05B	12.86B	2.52B	9.25B
Investing Cash Flow	0	1.37B	-2.99B	-387.00M	-2.97B	-3.34B
Financing Cash Flow	0	-15.81B	-9.04B	-6.95B	-3.58B	-14.06B

KURABO INDUSTRIES LTD. Technical Analysis

Technical Analysis SentimentNegative

Last Price2133.00

Price Trends

50DMA2289.22Negative

100DMA2153.33Negative

200DMA2009.97Positive

Market Momentum

MACD-45.98Positive

RSI39.21Neutral

STOCH45.67Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3106, the sentiment is Negative. The current price of 2133.00 is below the 20-day moving average (MA) of 2282.45, below the 50-day MA of 2289.22, and above the 200-day MA of 2009.97, indicating a neutral trend. The MACD of -45.98 indicates Positive momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 45.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3106.

KURABO INDUSTRIES LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:3106 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3106	78Outperform	JPY 184.95B	11.36	―	9.34%	1.96%	32.98%
JP:8014	74Outperform	JPY 107.17B	8.56	―	3.67%	2.92%	28.84%
JP:5393	72Outperform	JPY 611.16B	16.27	15.37%	2.04%	8.89%	23.72%
JP:3105	67Neutral	JPY 311.81B	10.99	9.06%	1.85%	3.85%	34.29%
JP:3512	67Neutral	JPY 17.62B	22.61	―	2.87%	-4.43%	71.22%
JP:3401	62Neutral	JPY 348.21B	18.01	4.89%	2.77%	-9.20%	-28.11%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:3106 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3106	KURABO INDUSTRIES LTD.	2133.00	778.41	57.46%
JP:5393	Nichias Corporation	3157.00	1205.82	61.80%
JP:3105	Nisshinbo Holdings	1941.00	735.34	60.99%
JP:3401	Teijin	1806.50	576.18	46.83%
JP:3512	Nippon Felt Company Limited	977.00	388.31	65.96%
JP:8014	Chori Co., Ltd.	4355.00	623.46	16.71%

KURABO INDUSTRIES LTD. Corporate Events

Kurabo Industries Nears Completion of Major Share Buyback Program

Aug 25, 2026

Kurabo Industries Ltd. has completed a share repurchase program authorized by its board in November 2025, buying back 42,800 common shares between August 1 and August 24, 2026 on the Tokyo Stock Exchange for a total of 443,080,000 yen. As of August 2...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 30, 2026

KURABO INDUSTRIES LTD. AI Stock Analysis