Sotoh Co., Ltd. (3571) AI Stock Analysis

• Market Cap: ¥10.14B
• Dividend Yield: 5.02%
• Average Volume (3M): 10.05K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 0.39
• Revenue Growth: -5.24%
• EPS Growth: -89.49%
• Country: JP
• Employees: 547
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 15.65
• Shares Outstanding: 13,933,757
• 10 Day Avg. Volume: 10,770
• 30 Day Avg. Volume: 10,053
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥848.00
• Price Target Upside: 6.40% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: ¥848.00 ▲(6.40% Upside)

Sotoh Co., Ltd. scores well due to strong technical momentum and a healthy dividend yield, despite mixed financial performance. The robust balance sheet supports stability, but cash flow and revenue growth challenges temper the overall outlook.

Sotoh Co., Ltd. Business Overview & Revenue Model

Company Description

Sotoh Co., Ltd. (3571) is a Japanese company engaged in the textile industry. The company specializes in the production and sale of textile products, including fabrics and yarns. Sotoh Co., Ltd. serves various sectors, including fashion, home textiles, and industrial applications, providing high-quality materials to a diverse clientele.

How the Company Makes Money

Sotoh Co., Ltd. generates revenue primarily through the manufacturing and sale of textile products, such as fabrics and yarns. The company's key revenue streams include direct sales to fashion brands, home textile manufacturers, and industrial clients. Additionally, Sotoh Co., Ltd. may engage in strategic partnerships with other companies in the textile and fashion industries to expand its market reach and enhance its product offerings. The company's earnings are influenced by factors such as raw material costs, production efficiency, and market demand for textile products.

Sotoh Co., Ltd. Financial Statement Overview

Summary

Sotoh Co., Ltd. has a mixed financial outlook. The balance sheet is strong with low leverage and high equity, but the income statement shows inconsistent revenue and operating losses. Cash flow issues due to negative free cash flow highlight potential liquidity concerns.

Income Statement

The company shows a decline in revenue from 2024 to 2025, with a negative EBIT margin indicating operating losses. However, there is a net profit in 2025, suggesting some cost efficiencies or non-operating income improvements. Historical revenue growth has been inconsistent, posing a challenge for long-term growth strategies.

Balance Sheet

The company maintains a strong equity position with a high equity ratio and a low debt-to-equity ratio indicating financial stability. The improvement in stockholders' equity over the years is a positive sign, although total assets have not consistently grown, reflecting potential asset management issues.

Cash Flow

The operating cash flow remains positive, albeit lower compared to previous years, indicating operational challenges. Free cash flow is negative, suggesting high capital expenditures or other cash outflows, which could strain the company's liquidity if not managed properly.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.04B	10.04B	10.71B	9.83B	7.51B	7.55B
Gross Profit	935.84M	936.36M	1.31B	456.98M	314.87M	286.86M
EBITDA	705.34M	969.73M	3.42B	-113.88M	-565.83M	172.97M
Net Income	405.97M	406.79M	2.70B	-723.43M	-1.13B	-831.87M
Balance Sheet
Total Assets	19.85B	19.85B	18.81B	14.41B	14.71B	15.62B
Cash, Cash Equivalents and Short-Term Investments	1.90B	1.90B	3.48B	1.15B	2.75B	2.68B
Total Debt	700.59M	700.59M	516.28M	173.75M	152.00M	171.50M
Total Liabilities	5.12B	5.12B	4.54B	3.85B	3.43B	2.67B
Stockholders Equity	14.73B	14.73B	14.27B	10.57B	11.28B	12.95B
Cash Flow
Free Cash Flow	0.00	-1.33B	-156.48M	-2.15B	-255.72M	-82.28M
Operating Cash Flow	0.00	477.90M	564.99M	-793.70M	-71.06M	1.02B
Investing Cash Flow	0.00	-1.27B	1.90B	-323.71M	174.04M	-413.64M
Financing Cash Flow	0.00	-793.31M	64.91M	-271.83M	-338.85M	-238.26M

Sotoh Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 797.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3571, the sentiment is Positive. The current price of 797 is above the 20-day moving average (MA) of 793.70, above the 50-day MA of 774.10, and above the 200-day MA of 694.73, indicating a bullish trend. The MACD of 6.71 indicates Positive momentum. The RSI at 57.48 is Neutral, neither overbought nor oversold. The STOCH value of 52.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3571.

Sotoh Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3320	79 Outperform	9.67B	6.87	7.61%	2.88%	-1.05%	-9.49%
3123	77 Outperform	8.05B	10.53	4.27%	2.55%	-5.12%	-24.98%
8127	76 Outperform	12.94B	86.16	2.03%	2.54%	-4.37%	-54.08%
7126	72 Outperform	4.80B	9.90	―	2.21%	2.62%	10.90%
3571	70 Neutral	¥10.14B	35.19	―	5.02%	-5.24%	-89.49%
9885	53 Neutral	6.03B	-6.60	-6.01%	2.10%	-3.36%	-814.41%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%