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

• Market Cap: ¥8.68B
• Dividend Yield: 5.87%
• Average Volume (3M): 7.33K
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.43
• Revenue Growth: -6.22%
• EPS Growth: -84.84%
• Country: JP
• Employees: 547
• Sector: Consumer Cyclical
• Sector Strength: 76
• Industry: Apparel - Manufacturers
• EPS (TTM): -2.61
• Shares Outstanding: 13,933,757
• 10 Day Avg. Volume: 7,490
• 30 Day Avg. Volume: 7,330
• PEG Ratio: -2.81
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ¥733.00 ▲(7.32%Upside)

The overall score is primarily driven by a solid valuation due to a high dividend yield and reasonable P/E ratio, combined with modestly positive technical indicators. Financial performance is mixed, with strong balance sheet metrics but challenges in revenue growth and cash flow. The lack of earnings call and corporate event data did not influence the score.

Sotoh Co., Ltd. Business Overview & Revenue Model

Company Description

Sotoh Co., Ltd. (3571) is a Japan-based company primarily engaged in the textile industry. The company focuses on the manufacture and sale of various textile products, including fabrics and garments. Sotoh Co., Ltd. operates through multiple segments, catering to both domestic and international markets, and is known for its innovative textile solutions that emphasize quality and functionality.

How the Company Makes Money

Sotoh Co., Ltd. generates revenue primarily through the manufacturing and sales of textile products. Its key revenue streams include the sale of fabrics and garments to a diverse customer base, which includes apparel manufacturers, retailers, and other industrial clients. The company may also engage in strategic partnerships and collaborations with fashion brands to enhance its product offerings and market reach. Factors such as raw material costs, production efficiency, and market demand significantly impact its earnings. Export activities contribute to its international revenue, with a focus on expanding its presence in global markets.

Sotoh Co., Ltd. Financial Statement Overview

Summary

Sotoh Co., Ltd. demonstrates a strong recovery trajectory, particularly in profitability, supported by a solid balance sheet. However, cash flow remains a concern, which could impact future operations if not addressed. Strategic focus on improving operational efficiency and cash flow management could enhance overall financial health.

Income Statement

Sotoh Co., Ltd. shows strong recovery with a significant improvement in net income and gross profit margin in TTM compared to previous years. The revenue growth rate is positive, indicating potential for continued growth. However, persistent negative EBIT highlights underlying inefficiencies.

Balance Sheet

The company's balance sheet is robust, with a low debt-to-equity ratio and a high equity ratio, indicating financial stability. The significant increase in stockholders' equity over recent periods further strengthens the balance sheet.

Cash Flow

Cash flow performance is mixed, with zero operating cash flow and free cash flow in TTM. The absence of positive cash flow metrics may pose future challenges, despite previous improvements in free cash flow growth.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
10.19B	10.71B	9.83B	7.51B	7.55B	11.22B
	Gross Profit
989.40M	1.31B	456.98M	314.87M	286.86M	1.30B
	EBIT
-19.31M	341.81M	-547.44M	-582.65M	-634.90M	193.29M
	EBITDA
2.93B	3.42B	-113.88M	-565.83M	172.97M	741.87M
	Net Income Common Stockholders
2.48B	2.70B	-723.43M	-1.13B	-831.87M	-97.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.27B	3.48B	1.15B	2.75B	2.68B	2.22B
	Total Assets
18.62B	18.81B	14.41B	14.71B	15.62B	16.36B
	Total Debt
153.00M	516.28M	173.75M	152.00M	171.50M	52.76M
	Net Debt
-2.12B	-2.97B	-775.59M	-2.19B	-2.40B	-2.16B
	Total Liabilities
4.00B	4.54B	3.85B	3.43B	2.67B	2.62B
	Stockholders Equity
14.62B	14.27B	10.57B	11.28B	12.95B	13.75B
Cash Flow		Free Cash Flow
0.00	-156.48M	-2.15B	-255.72M	-82.28M	503.59M
	Operating Cash Flow
0.00	564.99M	-793.70M	-71.06M	1.02B	1.08B
	Investing Cash Flow
0.00	1.90B	-323.71M	174.04M	-413.64M	-534.83M
	Financing Cash Flow
0.00	64.91M	-271.83M	-338.85M	-238.26M	-520.27M

Sotoh Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 683.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 683 is above the 20-day moving average (MA) of 675.95, above the 50-day MA of 670.05, and above the 200-day MA of 657.85, indicating a bullish trend. The MACD of 3.21 indicates Negative momentum. The RSI at 57.71 is Neutral, neither overbought nor oversold. The STOCH value of 63.57 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
3123	79 Outperform	¥6.05B	7.17		3.39%	-9.85%	-8.43%
3320	77 Outperform	¥7.97B	6.23		2.76%	3.01%	-37.84%
7126	72 Outperform	¥5.33B	9.29		1.81%	6.42%	46.99%
3571	68 Neutral	¥8.68B	21.13		5.87%	-6.22%	-84.84%
8127	63 Neutral	¥7.46B	31.57		4.41%	-3.35%	-41.42%
Sector *	62 Neutral	$6.90B	11.20	2.94%	3.91%	2.68%	-25.01%
9885	53 Neutral	¥6.40B	―		1.98%	-12.30%	-274.20%