UNIFORM NEXT CO. LTD. (3566) AI Stock Analysis

0 Followers

UNIFORM NEXT CO. LTD.

(TSE/TYO:3566)

Select Model

Rating:58Neutral

Price Target:JPY 640.00▲(7.20% Upside)

Action:reiterated

Date:11/07/26

The score is primarily supported by strong financial fundamentals—rapid revenue growth, improved margins, and a low-leverage balance sheet—but is held back by materially volatile/negative cash generation in 2025 and weak technical conditions (price below key moving averages with negative momentum). Valuation is modestly supportive due to the low-to-mid P/E, though the dividend yield is minimal.

Positive Factors

Accelerating Revenue GrowthThe sharp acceleration in revenue indicates stronger demand for the company’s uniforms and workwear products and expands the base from which profits can grow. Continued sales growth over several years would support operating scale, customer reach, and reinvestment in the business.

Negative Factors

Volatile Cash GenerationThe reversal from strong 2024 cash generation to negative operating and free cash flow suggests that earnings are not consistently converting into cash. If this persists, working-capital or investment demands could restrict liquidity and reduce the funds available for expansion.

UNIFORM NEXT CO. LTD. (3566) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 6.09B
Dividend Yield: 0.84%
Average Volume (3M): 8,340
Price to Earnings (P/E): 11.9
Beta (1Y): 0.40
Revenue Growth: 16.63%
EPS Growth: 8.14%
Country: Japan
Employees: 157
Sector: General
Sector Strength: 55
Industry: Apparel - Retail

UNIFORM NEXT CO. LTD. Business Overview & Revenue Model

Company Description

Uniform Next Co., Ltd. is a Japanese enterprise specializing in providing a comprehensive range of professional apparel to a diverse clientele across Japan, spanning corporate entities, retail outlets, and individual consumers. Their offerings encomp...

How the Company Makes Money

The company primarily makes money by selling uniforms and workwear products (and potentially related apparel items) to customers, generating revenue from product sales. Its earnings are driven by the volume of uniforms/workwear sold and the pricing/m...

UNIFORM NEXT CO. LTD. Financial Statement Overview

Summary

Strong operating progress with accelerated revenue growth (~38% in 2025) and improved profitability (operating margin ~7.8%, net margin ~5.3%), supported by stable gross margin (~37%). Balance sheet is conservatively financed with very low leverage (debt-to-equity ~0.08) and improved ROE (~13.4%). The main drag is cash-flow inconsistency, including negative operating and free cash flow in 2025 despite higher earnings.

Income Statement

78Positive

Balance Sheet

86Very Positive

Cash Flow

44Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.07B	9.86B	8.39B	7.45B	6.33B	5.12B
Gross Profit	4.05B	3.63B	3.09B	2.78B	2.35B	1.91B
EBITDA	941.08M	848.00M	571.09M	592.10M	480.79M	427.07M
Net Income	579.81M	517.56M	325.01M	354.26M	276.48M	233.22M
Balance Sheet
Total Assets	6.04B	5.36B	4.95B	4.07B	3.71B	3.41B
Cash, Cash Equivalents and Short-Term Investments	1.85B	2.23B	2.36B	1.28B	1.96B	1.69B
Total Debt	258.31M	308.32M	408.33M	0	26.70M	123.50M
Total Liabilities	1.96B	1.50B	1.59B	1.02B	988.47M	948.03M
Stockholders Equity	4.08B	3.86B	3.36B	3.05B	2.72B	2.47B
Cash Flow
Free Cash Flow	0	-176.00M	717.00M	-628.97M	389.02M	232.55M
Operating Cash Flow	0	-98.23M	728.00M	135.19M	408.18M	253.92M
Investing Cash Flow	0	107.96M	-14.53M	-769.51M	-16.85M	-22.45M
Financing Cash Flow	0	-135.36M	368.38M	-51.68M	-121.73M	-129.82M

UNIFORM NEXT CO. LTD. Technical Analysis

Technical Analysis SentimentNegative

Last Price597.00

Price Trends

50DMA695.46Negative

100DMA766.56Negative

200DMA768.79Negative

Market Momentum

MACD-24.88Positive

RSI24.43Positive

STOCH14.87Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3566, the sentiment is Negative. The current price of 597.00 is below the 20-day moving average (MA) of 657.05, below the 50-day MA of 695.46, and below the 200-day MA of 768.79, indicating a bearish trend. The MACD of -24.88 indicates Positive momentum. The RSI at 24.43 is Positive, neither overbought nor oversold. The STOCH value of 14.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3566.

UNIFORM NEXT CO. LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:3566 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8219	79Outperform	JPY 112.50B	32.00	3.90%	6.05%	-1.25%	-27.12%
JP:7564	73Outperform	JPY 436.62B	18.48	―	1.68%	20.81%	26.89%
JP:7606	73Outperform	JPY 70.40B	10.70	―	3.87%	6.76%	91.48%
JP:8214	71Outperform	JPY 143.81B	16.98	―	5.31%	0.03%	-7.35%
JP:7494	61Neutral	JPY 7.52B	4.14	―	4.42%	-8.51%	―
JP:3566	58Neutral	JPY 6.04B	11.94	―	0.84%	16.63%	8.14%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:3566 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3566	UNIFORM NEXT CO. LTD.	597.00	-62.16	-9.43%
JP:8219	AOYAMA TRADING Co., Ltd.	760.00	19.48	2.63%
JP:7494	Konaka Co., Ltd.	226.00	-14.73	-6.12%
JP:7564	Workman Co., Ltd.	5310.00	-1075.03	-16.84%
JP:7606	UNITED ARROWS LTD.	2610.00	533.04	25.66%
JP:8214	AOKI Holdings, Inc.	1696.00	136.31	8.74%

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: Nov 07, 2026

UNIFORM NEXT CO. LTD. AI Stock Analysis