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Suminoe Textile Co., Ltd. (JP:3501)
:3501
Japanese Market
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Suminoe Textile Co., Ltd. (3501) AI Stock Analysis

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JP:3501

Suminoe Textile Co., Ltd.

(3501)

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Neutral 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
¥1,131.00
▼(-9.88% Downside)
Action:Reiterated
Date:07/15/26
The score is primarily driven by improving fundamentals—especially the sharp 2026 revenue rebound and better free cash flow—tempered by weak/unstable profitability including a 2026 net loss. Technicals add caution as the stock is still below key longer-term moving averages with negative MACD, while valuation is balanced by a solid dividend yield but a relatively high P/E.
Positive Factors
Revenue rebound (2026)
A ~45% revenue rebound in 2026 indicates renewed demand and improved top-line traction across Suminoe's interior/textile end markets. Durable top-line growth supports scale benefits, better capacity utilization and gives management headroom to invest in product development and distribution over the medium term.
Negative Factors
Weak, inconsistent profitability
Thin operating margins (~2.2% EBIT) and a swing to a net loss in 2026 highlight fragile profit conversion. Persistently low profitability reduces retained earnings growth, limits reinvestment capacity, constrains margin of safety against cost inflation, and heightens earnings sensitivity to modest top-line or input-cost shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue rebound (2026)
A ~45% revenue rebound in 2026 indicates renewed demand and improved top-line traction across Suminoe's interior/textile end markets. Durable top-line growth supports scale benefits, better capacity utilization and gives management headroom to invest in product development and distribution over the medium term.
Read all positive factors

Suminoe Textile Co., Ltd. (3501) vs. iShares MSCI Japan ETF (EWJ)

Suminoe Textile Co., Ltd. Business Overview & Revenue Model

Company Description
Suminoe Textile Co., Ltd., established in 1883 and headquartered in Osaka, Japan, is a global manufacturer and distributor of diverse textile solutions. The company's extensive product range includes interior furnishings for various buildings, suc...
How the Company Makes Money
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Suminoe Textile Co., Ltd. Financial Statement Overview

Summary
Strong 2026 revenue rebound (~45%) and improved cash generation (positive free cash flow ~¥3.8B) support the score. Offsetting this, profitability is weak and inconsistent (EBIT margin ~2.2%) and the company swung to a net loss in 2026, while cash flow and returns have been volatile across years.
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
61
Positive
BreakdownMay 2025May 2024May 2023May 2022May 2021
Income Statement
Total Revenue107.63B104.79B103.48B94.83B81.71B
Gross Profit22.30B22.34B22.28B19.43B17.17B
EBITDA4.83B5.66B5.28B3.52B3.63B
Net Income-341.00M670.00M874.00M320.00M281.00M
Balance Sheet
Total Assets91.75B94.98B92.20B88.15B84.80B
Cash, Cash Equivalents and Short-Term Investments8.99B8.92B8.38B7.14B8.21B
Total Debt21.36B23.21B20.10B23.17B20.80B
Total Liabilities51.92B57.81B54.51B54.03B51.35B
Stockholders Equity33.19B31.18B32.04B28.86B28.30B
Cash Flow
Free Cash Flow3.84B-439.00M3.78B-1.23B-4.04B
Operating Cash Flow5.00B2.28B7.45B1.80B375.00M
Investing Cash Flow-1.77B-2.25B-2.32B-2.83B-1.19B
Financing Cash Flow-4.16B773.00M-4.20B-52.00M-2.07B

Suminoe Textile Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1255.00
Price Trends
50DMA
1124.54
Positive
100DMA
1177.13
Positive
200DMA
1219.81
Negative
Market Momentum
MACD
16.41
Negative
RSI
62.75
Neutral
STOCH
73.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3501, the sentiment is Positive. The current price of 1255 is above the 20-day moving average (MA) of 1171.95, above the 50-day MA of 1124.54, and above the 200-day MA of 1219.81, indicating a neutral trend. The MACD of 16.41 indicates Negative momentum. The RSI at 62.75 is Neutral, neither overbought nor oversold. The STOCH value of 73.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3501.

Suminoe Textile Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥182.15B12.4610.37%2.39%11.57%10.78%
74
Outperform
¥120.40B13.232.66%0.03%16.40%
72
Outperform
¥117.97B19.991.79%9.28%21.28%
69
Neutral
¥556.47B11.8927.72%0.99%11.59%248.87%
65
Neutral
¥1.87T19.994.57%1.73%5.82%47.74%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
54
Neutral
¥16.68B-46.433.46%2.71%-150.82%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3501
Suminoe Textile Co., Ltd.
1,190.00
50.14
4.40%
JP:3110
Nitto Boseki Co
2,901.00
1,769.19
156.32%
JP:3569
Seiren Co
3,425.00
454.02
15.28%
JP:3402
Toray Industries
1,262.50
282.42
28.82%
JP:3104
Fujibo Holdings, Inc.
3,480.00
1,386.87
66.26%
JP:3201
Japan Wool Textile Co., Ltd.
1,974.00
449.23
29.46%

Suminoe Textile Co., Ltd. Corporate Events

Suminoe Textiles Taps Automotive Chief Suwa as New President
Jul 14, 2026
Suminoe Co., Ltd. has announced a planned change in its top management, with current President and Representative Director Teppei Nagata slated to become Chairman and Representative Director. Kazuaki Suwa, currently Director, Senior Operating Offi...
Suminoe Textile Swings to Net Loss but Projects Strong Profit Rebound and Higher Dividend
Jul 14, 2026
Suminoe Textile reported consolidated net sales of ¥107.6 billion for the fiscal year ended May 31, 2026, up 2.7% year on year, while operating profit fell 21.1% to ¥2.4 billion and ordinary profit rose 10.0% to ¥2.8 billion. Profit...
Suminoe Lifts Revenue Outlook but Books Tax Asset Reversal, Cutting Bottom-Line Forecast
Jul 13, 2026
Suminoe Co., Ltd. has reversed 981 million yen of deferred tax assets for the fiscal year ending May 31, 2026, after reassessing their recoverability in light of current and future business performance trends. This non-cash tax adjustment will be ...
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: Jul 15, 2026