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

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Ultrafabrics Holdings Co.,Ltd.

(TSE/TYO:4235)

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Rating:57Neutral

Price Target:JPY 633.00▲(2.26% Upside)

Action:reiterated

Date:08/20/26

The overall score of 57 reflects a company with strong cash flow and an attractive valuation, but these are counterbalanced by deteriorating profitability and weak technical momentum. The primary strength is the robust free cash flow generation and high dividend yield, which provide a margin of safety. The most significant risk is the persistent decline in profit margins, which calls into question the sustainability of earnings. The neutral technical trend does not provide a catalyst for near-term price appreciation.

Positive Factors

Strong Revenue GrowthRevenue growth of 32.8% indicates strong demand across the company’s engineered fabric business and provides a durable foundation for expansion. If maintained, this top-line momentum can support greater scale, broader customer penetration, and improved operating leverage over the next several quarters.

Negative Factors

Material Margin CompressionThe sharp decline in net and operating margins shows that strong revenue growth is not translating proportionately into earnings. Persistently lower profitability could reduce reinvestment capacity, weaken earnings quality, and make future results more sensitive to changes in costs or product mix.

Ultrafabrics Holdings Co.,Ltd. (4235) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 9.91B
Dividend Yield: 5.72%
Average Volume (3M): 32.69K
Price to Earnings (P/E): 12.6
Beta (1Y): 0.70
Revenue Growth: 7.01%
EPS Growth: 17.77%
Country: Japan
Employees: 334
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

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

Company Description

Ultrafabrics Holdings Co., Ltd. is a holding company that, through its subsidiaries, engages in the manufacture and sale of high-quality polyurethane synthetic leather. Its products are utilized across various industries, including for furniture, aut...

Ultrafabrics Holdings Co.,Ltd. Financial Statement Overview

Summary

Financial performance is mixed. Cash flow is a standout strength (Score 78), with free cash flow surging 93%. The balance sheet is improving via deleveraging (Score 55). However, the income statement (Score 42) reveals significant margin compression, with TTM net profit margin halving from prior peaks. The strong cash generation is offset by declining profitability.

Income Statement

42Neutral

Balance Sheet

55Neutral

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.38B	20.55B	20.30B	21.05B	19.59B	14.13B
Gross Profit	9.57B	9.33B	9.84B	10.12B	8.80B	5.44B
EBITDA	3.47B	3.34B	4.43B	5.15B	4.74B	2.89B
Net Income	814.00M	786.00M	1.64B	2.38B	2.05B	986.00M
Balance Sheet
Total Assets	39.05B	38.47B	39.00B	36.19B	34.86B	31.38B
Cash, Cash Equivalents and Short-Term Investments	3.16B	2.26B	2.72B	3.63B	4.07B	3.52B
Total Debt	16.35B	16.56B	16.85B	16.97B	17.33B	15.67B
Total Liabilities	21.27B	20.86B	21.57B	20.92B	21.64B	19.30B
Stockholders Equity	17.77B	17.61B	17.43B	15.26B	13.22B	12.08B
Cash Flow
Free Cash Flow	2.54B	1.65B	872.00M	980.00M	1.63B	1.47B
Operating Cash Flow	3.31B	2.98B	3.64B	2.93B	2.17B	2.08B
Investing Cash Flow	-1.30B	-2.02B	-2.87B	-2.03B	425.00M	-957.00M
Financing Cash Flow	-804.00M	-1.40B	-1.49B	-1.39B	-2.11B	-754.00M

Ultrafabrics Holdings Co.,Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price619.00

Price Trends

50DMA660.36Negative

100DMA673.07Negative

200DMA682.58Negative

Market Momentum

MACD-14.77Positive

RSI37.48Neutral

STOCH45.79Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4235, the sentiment is Negative. The current price of 619.00 is below the 20-day moving average (MA) of 634.15, below the 50-day MA of 660.36, and below the 200-day MA of 682.58, indicating a bearish trend. The MACD of -14.77 indicates Positive momentum. The RSI at 37.48 is Neutral, neither overbought nor oversold. The STOCH value of 45.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4235.

Ultrafabrics Holdings Co.,Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:4235 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:8130	82Outperform	JPY 181.32B	11.20	―	4.90%	3.91%	28.69%
JP:7887	68Neutral	JPY 6.79B	3.71	―	3.07%	40.27%	-18.17%
JP:7972	68Neutral	JPY 131.20B	12.21	―	3.03%	9.72%	12.77%
JP:7840	67Neutral	JPY 44.61B	13.24	―	3.12%	4.44%	26.86%
JP:4235	57Neutral	JPY 10.17B	12.59	―	5.72%	7.01%	17.77%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:7898	51Neutral	JPY 7.90B	-4.06	―	2.86%	4.00%	-208.45%

* General Sector Average

Performance Comparison

JP:4235 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:4235	Ultrafabrics Holdings Co.,Ltd.	619.00	-148.26	-19.32%
JP:7840	France Bed Holdings Co., Ltd.	1312.00	31.62	2.47%
JP:7887	Nankai Plywood Co., Ltd.	1305.00	-161.74	-11.03%
JP:7898	Wood One Co., Ltd.	840.00	-27.11	-3.13%
JP:7972	Itoki Corporation	2527.00	234.07	10.21%
JP:8130	Sangetsu Corporation	3165.00	252.12	8.66%

Ultrafabrics Holdings Co.,Ltd. Corporate Events

Ultrafabrics Raises Q2 Sales and Earnings While Maintaining Solid Balance Sheet

Aug 14, 2026

Ultrafabrics Holdings reported consolidated sales of ¥10,919 million for the second quarter ended June 2026, an 8.2% increase year-on-year, while operating profit slipped 3.6% to ¥640 million and profit before tax fell 20.3% to ¥311 million. Net prof...

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 20, 2026

Ultrafabrics Holdings Co.,Ltd. AI Stock Analysis