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Kitanihon Spinning Co., Ltd.
(3409)
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Rating:41Neutral
Price Target:
¥74.00
▼(-38.84% Downside)
Action:Reiterated
Date:07/07/26
The score is primarily held down by weak financial performance, driven by ongoing losses, a return to revenue decline in 2026, and significant cash burn (negative operating and free cash flow). Technicals add further pressure, with the stock trading below key moving averages and negative MACD signaling a weak trend. Valuation does not offset these risks because the company is loss-making (negative P/E) and no dividend yield is available.
Positive Factors
Improving leverage
The substantial reduction in debt-to-equity indicates a healthier capital structure and improves financial flexibility. Lower leverage can reduce balance-sheet pressure and give the company more capacity to absorb operating volatility or support recovery efforts over the next several quarters.
Negative Factors
Persistent unprofitability
Recurring net losses indicate that the current business model is not converting revenue into sustainable shareholder returns. The 2026 loss widening is particularly concerning because it suggests that prior improvement was not yet durable and that operating costs remain too high relative to revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage
The substantial reduction in debt-to-equity indicates a healthier capital structure and improves financial flexibility. Lower leverage can reduce balance-sheet pressure and give the company more capacity to absorb operating volatility or support recovery efforts over the next several quarters.
Read all positive factors
Kitanihon Spinning Co., Ltd. (3409) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥2.49B
Dividend YieldN/A
Average Volume (3M)55.66K
Price to Earnings (P/E)―
Beta (1Y)-0.06
Revenue Growth9.42%
EPS Growth-43.60%
CountryJP
Employees148
SectorConsumer Cyclical
Sector Strength84
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)-4.76
Shares Outstanding31,790,394
10 Day Avg. Volume59,890
30 Day Avg. Volume55,660
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)2.08
Price to Sales (P/S)2.15
P/FCF Ratio-10.51
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kitanihon Spinning Co., Ltd. Business Overview & Revenue Model
Company Description
Established in 1948 and headquartered in Hakusan, Japan, Kitabo Co. Ltd. (known as Kitanihon Spinning Co., Ltd. until its name change in July 2025) is a multifaceted enterprise engaged in manufacturing across several sectors, notably healthcare an...
How the Company Makes Money
Kitanihon Spinning generates revenue mainly by manufacturing spun yarn (and related textile materials) and selling these products to downstream customers such as textile processors and fabric/apparel manufacturers. Its core revenue stream is produ...
Kitanihon Spinning Co., Ltd. Financial Statement Overview
Summary
Income Statement
26
Negative
Balance Sheet
55
Neutral
Cash Flow
22
Negative
| Breakdown | TTM | Mar 2026 | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.83B | 1.51B | 1.63B | 1.31B | 1.19B | 830.45M |
| Gross Profit | 292.12M | 222.10M | 233.00M | 201.59M | 95.55M | 82.82M |
| EBITDA | -74.38M | -115.98M | -32.00M | -48.69M | -202.01M | -80.58M |
| Net Income | -135.99M | -135.49M | -55.75M | -115.62M | -271.09M | -128.10M |
Balance Sheet | ||||||
| Total Assets | 2.72B | 2.79B | 2.17B | 1.86B | 2.07B | 2.07B |
| Cash, Cash Equivalents and Short-Term Investments | 415.64M | 474.85M | 512.93M | 216.10M | 286.58M | 308.63M |
| Total Debt | 539.68M | 599.62M | 539.60M | 545.27M | 754.72M | 637.47M |
| Total Liabilities | 1.09B | 1.16B | 979.07M | 958.45M | 1.11B | 989.83M |
| Stockholders Equity | 1.55B | 1.56B | 1.19B | 899.02M | 959.94M | 1.08B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -308.79M | 0.00 | -147.73M | -322.61M | -260.19M |
| Operating Cash Flow | 0.00 | -294.52M | 0.00 | -97.02M | -91.57M | -160.98M |
| Investing Cash Flow | 0.00 | 56.67M | -35.43M | 177.29M | -207.07M | -351.40M |
| Financing Cash Flow | 0.00 | 197.76M | 340.00M | -159.58M | 274.23M | 336.12M |
Kitanihon Spinning Co., Ltd. Technical Analysis
Negative
121.00
Price Trends
89.46
Negative
94.12
Negative
108.02
Negative
Market Momentum
-3.76
Positive
27.47
Positive
42.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3409, the sentiment is Negative. The current price of 121 is above the 20-day moving average (MA) of 84.90, above the 50-day MA of 89.46, and above the 200-day MA of 108.02, indicating a bearish trend. The MACD of -3.76 indicates Positive momentum. The RSI at 27.47 is Positive, neither overbought nor oversold. The STOCH value of 42.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3409.
Kitanihon Spinning Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥177.05B | 11.84 | 10.34% | 2.33% | 11.57% | 10.78% | |
74 Outperform | ¥119.11B | 12.72 | ― | 2.53% | 0.03% | 16.40% | |
72 Outperform | ¥116.95B | 19.88 | ― | 2.23% | 9.28% | 21.28% | |
68 Neutral | ¥12.85B | 13.45 | ― | 4.91% | 20.31% | 6.98% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
45 Neutral | ¥3.90B | 56.53 | ― | 2.33% | -0.99% | -7.06% | |
41 Neutral | ¥2.49B | -16.18 | ― | ― | 9.42% | -43.60% |
* Consumer Cyclical Sector Average
JP:3409
Kitanihon Spinning Co., Ltd.
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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.