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Suminoe Textile Co., Ltd. (3501) AI Stock Analysis

JP:3501

Suminoe Textile Co., Ltd.

(TSE/TYO:3501)

Select Model
Rating:48Neutral
Price Target:JPY 1,140.00â–²(0.80% Upside)
Action:reiterated
Date:10/15/26

The overall score is constrained by weak profitability and bearish technicals. The primary risk is the company's recent net loss and inability to convert steady revenue growth into consistent bottom-line results, which is reflected in the negative P/E ratio. Technical analysis confirms a downtrend with the stock trading below all major moving averages and weak momentum. Mitigating factors include a strong, low-leverage balance sheet and a high dividend yield of 3.47%, which provides some downside support and income appeal. The lack of positive catalysts from earnings calls or corporate events leaves the stock vulnerable to its current negative trends.

Positive Factors
Strong 2026 Revenue ReboundThe 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 LossA 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.

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

-15%-10%-5%0%5%10%15%20%25%JP:3501-3.32%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 15.00B
Dividend Yield
3.54%
Average Volume (3M)
17.04K
Price to Earnings (P/E)
-28.9
Beta (1Y)
0.53
Revenue Growth
2.33%
EPS Growth
-144.00%
Country
Japan
Employees
2,986
Sector
Consumer Cyclical
Sector Strength
61
Industry
Manufacturing - Textiles

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, such a...

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 fac...

Suminoe Textile Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. Revenue growth is steady and the balance sheet is solid with low leverage (D/E 0.64) and growing equity. However, profitability is a major concern, with a net loss in the latest year, thin margins, and a negative ROE. Cash flow is volatile, though the most recent year showed healthy free cash flow. The net loss and weak profitability metrics heavily weigh on the score.

Income Statement

35Negative

Balance Sheet

65Positive

Cash Flow

55Neutral
Financial statement breakdown
BreakdownTTMMay 2025May 2024May 2023May 2022May 2021
Income Statement
Total Revenue108.15B107.63B104.79B103.48B94.83B79.70B
Gross Profit22.63B22.30B22.34B22.28B19.43B16.83B
EBITDA4.54B4.83B5.66B5.28B3.52B4.17B
Net Income-523.00M-341.00M670.00M874.00M320.00M409.00M
Balance Sheet
Total Assets90.93B91.75B94.98B92.20B88.15B83.67B
Cash, Cash Equivalents and Short-Term Investments8.74B8.99B8.92B8.38B7.14B10.99B
Total Debt19.70B21.36B23.21B20.10B23.17B20.32B
Total Liabilities50.73B51.92B57.81B54.51B54.03B50.71B
Stockholders Equity33.53B33.19B31.18B32.04B28.86B28.05B
Cash Flow
Free Cash Flow3.84B3.84B-439.00M3.78B-1.23B1.58B
Operating Cash Flow5.00B5.00B2.28B7.45B1.80B4.17B
Investing Cash Flow-1.77B-1.77B-2.25B-2.32B-2.83B-754.00M
Financing Cash Flow-4.16B-4.16B773.00M-4.20B-52.00M-3.17B

Suminoe Textile Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1131.00

Price Trends

50DMA1168.36Negative
100DMA1138.05Negative
200DMA1213.39Negative

Market Momentum

MACD-8.62Positive
RSI34.97Neutral
STOCH15.04Positive

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 1131.00 is below the 20-day moving average (MA) of 1150.05, below the 50-day MA of 1168.36, and below the 200-day MA of 1213.39, indicating a bearish trend. The MACD of -8.62 indicates Positive momentum. The RSI at 34.97 is Neutral, neither overbought nor oversold. The STOCH value of 15.04 is Positive, 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

JP:3501 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:3569JP:356975OutperformJPY 181.88B12.3310.34%2.24%11.57%10.78%
JP:3201JP:320174OutperformJPY 127.41B13.05―2.31%-0.33%40.20%
JP:3402JP:340274OutperformJPY 1.74T18.675.28%1.68%5.82%47.74%
JP:3110JP:311067NeutralJPY 527.16B11.5327.25%1.13%11.59%248.87%
JP:3104JP:310463NeutralJPY 110.36B18.76―2.36%14.36%22.61%
Sector *61Neutral$18.38B12.79-2.54%3.03%1.52%-15.83%
JP:3501JP:350148NeutralJPY 15.85B-28.85―3.54%2.33%-144.00%

* Consumer Cyclical Sector Average

Performance Comparison

0%100%200%JP:3501JP:3110JP:3569JP:3402JP:3104JP:3201Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:3501 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:3501Suminoe Textile Co., Ltd.1131.00-40.81-3.48%
JP:3110Nitto Boseki Co 2814.501079.3462.20%
JP:3569Seiren Co 3390.00294.499.51%
JP:3402Toray Industries, Inc.1179.00251.1327.06%
JP:3104Fujibo Holdings, Inc.3265.001035.3746.44%
JP:3201Japan Wool Textile Co., Ltd.2074.00487.8530.76%

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 pr...

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 and t...

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 of...

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 mo...

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 Suwa...

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