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Sotoh Co., Ltd. (JP:3571)
:3571
Japanese Market
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Sotoh Co., Ltd. (3571) AI Stock Analysis

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JP:3571

Sotoh Co., Ltd.

(3571)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
¥772.00
▼(-2.89% Downside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by solid financial positioning (very low leverage) but held back by uneven cash generation and still-negative operating profit. Valuation is a positive contributor due to the high dividend yield and reasonable P/E, while technicals are only mildly constructive with the stock still below the 200-day moving average.
Positive Factors
Conservative balance sheet / low leverage
Very low debt-to-equity (~3.2%) and a large, stable equity base provide durable financial resilience. This conservative financing reduces solvency risk, supports the dividend policy and gives management flexibility to fund investments or weather cyclicality without immediate refinancing pressure.
Negative Factors
Negative operating profitability
Persistent negative operating margin (~-2.2%) indicates core apparel operations are not yet profitable without non-operating gains. Reliance on below-the-line items or one-offs to deliver net profit is not durable and risks earnings reversals if core cost structure or pricing power isn't restored.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
Very low debt-to-equity (~3.2%) and a large, stable equity base provide durable financial resilience. This conservative financing reduces solvency risk, supports the dividend policy and gives management flexibility to fund investments or weather cyclicality without immediate refinancing pressure.
Read all positive factors

Sotoh Co., Ltd. (3571) vs. iShares MSCI Japan ETF (EWJ)

Sotoh Co., Ltd. Business Overview & Revenue Model

Company Description
Sotoh Co., Ltd. is a Japanese company that focuses on the coloration of various fabrics, such as wool, composite, and knitted materials. The firm provides a range of services, including chemical dyeing, hair knitting, and general textile processin...
How the Company Makes Money
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Sotoh Co., Ltd. Financial Statement Overview

Summary
Balance sheet strength is a clear positive (very low leverage and stable equity), and profitability has improved versus the FY2021–FY2023 loss period. However, operating profit remains negative in FY2026 and cash flow quality is a key weakness, with free cash flow still negative and only moderate conversion of earnings into operating cash flow.
Income Statement
58
Neutral
Balance Sheet
82
Very Positive
Cash Flow
44
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue10.57B10.70B10.04B10.71B9.83B7.51B
Gross Profit1.27B1.20B914.99M1.30B452.33M308.56M
EBITDA550.41M577.82M519.99M929.06M28.11M-32.53M
Net Income645.27M515.58M406.79M2.70B-723.43M-1.13B
Balance Sheet
Total Assets20.57B19.79B19.92B18.81B14.41B14.71B
Cash, Cash Equivalents and Short-Term Investments1.59B1.26B1.90B3.48B1.15B2.75B
Total Debt650.90M478.27M700.59M516.28M173.75M151.75M
Total Liabilities5.42B4.88B5.09B4.54B3.85B3.43B
Stockholders Equity15.15B14.91B14.83B14.27B10.57B11.28B
Cash Flow
Free Cash Flow0.00-458.97M-1.32B-156.48M-2.15B-251.11M
Operating Cash Flow0.001.07B476.46M564.99M-789.05M-66.45M
Investing Cash Flow0.00-647.64M-1.26B1.90B-328.35M169.43M
Financing Cash Flow0.00-1.06B-802.57M64.91M-271.83M-338.85M

Sotoh Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price795.00
Price Trends
50DMA
711.12
Positive
100DMA
706.42
Positive
200DMA
733.66
Negative
Market Momentum
MACD
3.91
Negative
RSI
71.94
Negative
STOCH
91.02
Negative
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 795 is above the 20-day moving average (MA) of 715.55, above the 50-day MA of 711.12, and above the 200-day MA of 733.66, indicating a neutral trend. The MACD of 3.91 indicates Negative momentum. The RSI at 71.94 is Negative, neither overbought nor oversold. The STOCH value of 91.02 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
¥9.67B7.362.77%-4.63%-10.18%
66
Neutral
¥8.94B13.915.32%4.13%131.13%
63
Neutral
¥13.59B14.464.80%20.31%6.98%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
49
Neutral
¥3.29B2.54-10.13%46.29%
48
Neutral
¥16.83B-13.96-0.62%-33.86%
46
Neutral
¥5.32B-1.422.23%5.38%-308.27%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3571
Sotoh Co., Ltd.
728.00
-15.58
-2.09%
JP:3109
Shikibo Ltd.
1,094.00
119.26
12.23%
JP:3320
Cross Plus Inc.
1,311.00
56.83
4.53%
JP:3529
Atsugi Co., Ltd.
1,059.00
-71.00
-6.28%
JP:8166
Taka-Q Co., Ltd.
78.00
-29.00
-27.10%
JP:9885
Charle Co., Ltd.
335.00
-34.48
-9.33%
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: Aug 17, 2026