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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 55 (OpenAI - Gpt-5.6Sol)
Rating:55Neutral
Price Target:
¥1,181.00
▼(-5.90% Downside)
Action:Reiterated
Date:10/15/26
The score is primarily driven by mixed financial performance: strong 2026 revenue growth and improved free cash flow are positives, but thin margins and a return to a net loss meaningfully increase risk. Technical indicators are weak (negative MACD and sub-50 RSI, with price below key moving averages), while valuation is supported by a ~3.47% dividend yield but constrained by negative earnings (negative P/E).
Positive Factors
Strong 2026 Revenue Rebound
The sharp 2026 revenue rebound shows that Suminoe regained substantial top-line momentum across its textile businesses. If this demand level persists, greater scale can support customer relationships, production utilization, and investment in higher-value products over the next several quarters.
Negative Factors
Thin Margins and 2026 Net Loss
A roughly 2.2% operating margin leaves limited protection against cost increases or weaker product mix, while the return to a net loss shows that revenue growth is not yet translating reliably into shareholder earnings. This weakens confidence in near-term earnings durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong 2026 Revenue Rebound
The sharp 2026 revenue rebound shows that Suminoe regained substantial top-line momentum across its textile businesses. If this demand level persists, greater scale can support customer relationships, production utilization, and investment in higher-value products over the next several quarters.
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
Suminoe Textile makes money primarily by manufacturing and selling textile products. Its core revenue is generated from the sale of interior/flooring materials—especially carpets—supplied to customers such as homebuilders, contractors, commercial ...

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. However, profitability remains a key weakness with low operating margin (~2.2%) and a swing to a net loss in 2026, reducing confidence in earnings durability despite manageable leverage.
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
61
Positive
BreakdownTTMMay 2025May 2024May 2023May 2022May 2021
Income Statement
Total Revenue108.15B107.63B104.79B103.48B94.83B81.71B
Gross Profit22.63B22.30B22.34B22.28B19.43B17.17B
EBITDA4.54B4.83B5.66B5.28B3.52B3.63B
Net Income-523.00M-341.00M670.00M874.00M320.00M281.00M
Balance Sheet
Total Assets90.93B91.75B94.98B92.20B88.15B84.80B
Cash, Cash Equivalents and Short-Term Investments8.74B8.99B8.92B8.38B7.14B8.21B
Total Debt19.70B21.36B23.21B20.10B23.17B20.80B
Total Liabilities50.73B51.92B57.81B54.51B54.03B51.35B
Stockholders Equity33.53B33.19B31.18B32.04B28.86B28.30B
Cash Flow
Free Cash Flow3.84B3.84B-439.00M3.78B-1.23B-4.04B
Operating Cash Flow5.00B5.00B2.28B7.45B1.80B375.00M
Investing Cash Flow-1.77B-1.77B-2.25B-2.32B-2.83B-1.19B
Financing Cash Flow-4.16B-4.16B773.00M-4.20B-52.00M-2.07B

Suminoe Textile Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1255.00
Price Trends
50DMA
1169.38
Negative
100DMA
1137.49
Negative
200DMA
1213.92
Negative
Market Momentum
MACD
-7.94
Positive
RSI
35.41
Neutral
STOCH
27.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3501, the sentiment is Negative. The current price of 1255 is above the 20-day moving average (MA) of 1152.05, above the 50-day MA of 1169.38, and above the 200-day MA of 1213.92, indicating a bearish trend. The MACD of -7.94 indicates Positive momentum. The RSI at 35.41 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
¥182.15B12.3510.34%2.24%11.57%10.78%
74
Outperform
¥126.24B12.93―2.34%-0.33%40.20%
72
Outperform
¥123.04B20.91―2.12%9.28%21.28%
67
Neutral
¥571.27B12.5027.25%1.05%11.59%248.87%
65
Neutral
¥1.76T18.915.28%1.66%5.82%47.74%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
55
Neutral
¥15.86B-28.88―3.53%2.33%-144.00%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3501
Suminoe Textile Co., Ltd.
1,132.00
-56.28
-4.74%
JP:3110
Nitto Boseki Co
3,050.00
1,360.45
80.52%
JP:3569
Seiren Co
3,395.00
343.43
11.25%
JP:3402
Toray Industries
1,194.00
261.61
28.06%
JP:3104
Fujibo Holdings, Inc.
3,640.00
1,459.26
66.92%
JP:3201
Japan Wool Textile Co., Ltd.
2,055.00
478.60
30.36%

Suminoe Textile Co., Ltd. Corporate Events

Suminoe Tightens Internal Control and Governance Framework Across Group
Oct 9, 2026
Suminoe Co., Ltd. has approved a partial amendment to its Basic Policy on Establishment of Internal Control Systems at a Board of Directors meeting held on October 9, 2026. The revised policy reinforces group-wide compliance, clarifies information...
Suminoe Textile Posts Q1 Loss But Projects Strong Earnings Recovery
Oct 9, 2026
Suminoe Textile reported consolidated net sales of ¥25.98 billion for the three months ended August 31, 2026, up 2.0% year-on-year, while operating profit rose 19.0% to ¥379 million. Ordinary profit declined 23.8% to ¥406 million an...
Suminoe Completes Treasury Share Disposal for Executive Restricted Stock Plan
Sep 25, 2026
Suminoe Co., Ltd. has completed payment procedures for the disposal of 23,800 treasury shares under a restricted stock compensation scheme, following a board resolution passed on August 28, 2026. The shares, disposed at 1,192 yen each for a total ...
Suminoe to Grant Restricted Treasury Shares to Directors and Officers as Long-Term Incentive
Aug 28, 2026
Suminoe Co., Ltd. will dispose of 23,800 shares of its treasury stock as restricted stock compensation to four internal directors and nine operating officers, with a disposal price of 1,192 yen per share and a total value of 28.37 million yen. The...
Suminoe Reshapes Top Management to Strengthen Global Automotive and Interior Textile Operations
Aug 28, 2026
Suminoe Co., Ltd. has announced a broad reshuffle of its top management and executive officers following a Board resolution on August 28, 2026. Chairman and President roles have been split, elevating Teppei Nagata to chairman and making Kazuaki Su...
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: Oct 15, 2026