Ultrafabrics Holdings Co.,Ltd. (4235) AI Stock Analysis

• Market Cap: ¥13.08B
• Dividend Yield: 4.96%
• Average Volume (3M): 41.44K
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.91
• Revenue Growth: -4.37%
• EPS Growth: -66.98%
• Country: JP
• Employees: 321
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 4.56
• Shares Outstanding: 16,965,200
• 10 Day Avg. Volume: 28,760
• 30 Day Avg. Volume: 41,443
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: ¥867.00 ▲(11.58% Upside)

Ultrafabrics Holdings Co.,Ltd. shows a strong valuation with an attractive dividend yield and reasonable P/E ratio, contributing positively to the overall score. Technical analysis supports a bullish trend, enhancing the stock's appeal. Financial performance is stable, though improvements in profitability and cash flow efficiency are needed.

Ultrafabrics Holdings Co.,Ltd. Business Overview & Revenue Model

Company Description

Ultrafabrics Holdings Co.,Ltd. manufactures and sells synthetic leather in Japan and internationally. It is also involved in the manufacture of polyurethane leather; and trading activities. The company was formerly known as Daiichi Kasei Co.,Ltd. and changed its name to Ultrafabrics Holdings Co.,Ltd. in October 2017. The company was incorporated in 1966 and is headquartered in Hachioji, Japan.

How the Company Makes Money

Ultrafabrics generates revenue through the sale of its synthetic fabrics to various industries, including automotive manufacturers, furniture producers, and aviation companies. The company benefits from a diverse revenue model that includes direct sales, partnerships with key distributors, and collaborations with design firms. Significant revenue streams come from long-term contracts with major automotive brands for interior upholstery materials, as well as custom fabric solutions for commercial and residential furniture markets. Additionally, Ultrafabrics invests in research and development to create innovative products that meet evolving market demands, which helps in maintaining a competitive edge and attracting new clients.

Ultrafabrics Holdings Co.,Ltd. Financial Statement Overview

Summary

Ultrafabrics Holdings Co.,Ltd. demonstrates strong revenue growth and efficient production, but faces challenges in maintaining net profit margins. The balance sheet reflects a stable leverage position, though profitability on equity has declined. Cash flow management shows improvement, but further enhancement in cash conversion is needed. Overall, the company is in a stable financial position with room for improvement in profitability and cash flow efficiency.

Income Statement

Ultrafabrics Holdings Co.,Ltd. shows a strong gross profit margin of 51.50% TTM, indicating efficient production and pricing strategies. However, the net profit margin has decreased to 5.62% TTM from 8.08% in the previous year, suggesting increased costs or reduced pricing power. Revenue growth is positive at 55.4% TTM, but this is partly due to recovery from a previous decline. The EBIT and EBITDA margins have slightly decreased, indicating potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is stable at 1.01 TTM, showing a balanced approach to leveraging. However, the return on equity has decreased to 6.69% TTM from 9.41% in the previous year, indicating reduced profitability on equity. The equity ratio is moderate, suggesting a balanced asset financing strategy.

Cash Flow

Operating cash flow to net income ratio is 0.41 TTM, indicating moderate cash generation relative to net income. Free cash flow has grown by 37.68% TTM, showing improved cash management. However, the free cash flow to net income ratio is relatively low at 0.26, suggesting limited cash available after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.98B	20.30B	21.05B	19.59B	14.13B	10.00B
Gross Profit	9.59B	10.81B	11.05B	9.67B	6.19B	4.20B
EBITDA	3.27B	4.40B	5.14B	4.83B	3.08B	1.69B
Net Income	686.00M	1.64B	2.38B	2.05B	986.00M	35.00M
Balance Sheet
Total Assets	37.26B	39.00B	36.19B	34.86B	31.38B	27.61B
Cash, Cash Equivalents and Short-Term Investments	1.81B	2.72B	3.63B	4.07B	3.52B	3.05B
Total Debt	16.33B	16.85B	16.97B	17.33B	15.67B	15.57B
Total Liabilities	21.04B	21.57B	20.92B	21.64B	19.30B	18.03B
Stockholders Equity	16.23B	17.43B	15.26B	13.22B	12.08B	9.58B
Cash Flow
Free Cash Flow	1.52B	872.00M	905.00M	1.56B	1.38B	1.64B
Operating Cash Flow	3.51B	3.64B	2.93B	2.17B	2.08B	1.75B
Investing Cash Flow	-2.38B	-2.87B	-2.03B	425.00M	-957.00M	-141.00M
Financing Cash Flow	-1.64B	-1.49B	-1.39B	-2.11B	-754.00M	31.00M

Ultrafabrics Holdings Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 777.00
• 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:4235, the sentiment is Positive. The current price of 777 is above the 20-day moving average (MA) of 773.15, above the 50-day MA of 737.74, and above the 200-day MA of 745.37, indicating a bullish trend. The MACD of 14.42 indicates Positive momentum. The RSI at 56.71 is Neutral, neither overbought nor oversold. The STOCH value of 46.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4235.

Ultrafabrics Holdings Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4235	―	¥13.08B	17.97	―	4.96%	-4.37%	-66.98%
7840	―	¥45.34B	16.34	―	2.92%	0.19%	-9.79%
8119	―	¥8.06B	15.89	―	4.56%	-4.39%	-58.25%
7887	―	¥7.15B	13.36	―	2.02%	7.48%	10.02%
7898	―	¥8.02B	3.96	―	2.76%	0.90%	―
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9827	―	¥7.99B	67,010.31	―	5.59%	-1.39%	-99.93%

Ultrafabrics Holdings Co.,Ltd. Corporate Events

Ultrafabrics Holdings Revises 2025 Earnings Forecasts Amid Market Challenges

Ultrafabrics Holdings Co., Ltd. announced a significant divergence between its first half fiscal year 2025 earnings forecasts and actual results, leading to a downward revision of its full-year earnings forecasts. The company attributes the shortfall to various factors, including a wait-and-see approach by customers due to uncertainties in US tariff policies, a soft office market, high interest rates, and rising raw material costs. Despite strong sales in the aviation sector, the company has adjusted its sales assumptions for automotive seats and revised its forex rate expectations, impacting its gross profit margin and leading to reduced forecasts for operating income and net income.