NAIGAI Co., Ltd. (8013) AI Stock Analysis

NAIGAI Co., Ltd.

(TSE/TYO:8013)

Select Model

Rating:48Neutral

Price Target:JPY 363.00▼(-5.22% Downside)

Action:reiterated

Date:09/16/26

The overall score of 48 reflects a company with significant financial risks. The most critical factor is the persistent negative cash flow, which threatens liquidity and long-term viability. While the balance sheet is stable and technical trends are currently positive, these are overshadowed by the company's inability to generate cash from operations. The neutral valuation does not offer a margin of safety to compensate for these fundamental weaknesses.

Positive Factors

Revenue RecoveryRevenue has recovered from its earlier downturn and returned to growth, indicating that demand and the company’s apparel distribution model retain some resilience. Although the recent pace is modest, a stabilized top line provides a base for improving product mix and operating performance.

Negative Factors

Persistent Cash BurnPersistent negative operating and free cash flow means the business is not currently self-funding its operations and investment. Continued cash burn can reduce financial flexibility over time and increase reliance on balance-sheet resources unless profitability and working-capital performance improve.

NAIGAI Co., Ltd. (8013) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 2.88B
Dividend Yield: ―
Average Volume (3M): 5,246
Price to Earnings (P/E): 17.9
Beta (1Y): 0.30
Revenue Growth: 9.79%
EPS Growth: ―
Country: Japan
Employees: 164
Sector: General
Sector Strength: 55
Industry: Apparel - Footwear & Accessories

NAIGAI Co., Ltd. Business Overview & Revenue Model

Company Description

Naigai Co.,Ltd. engages in planning, manufacture, wholesale, import, and export of textile products in Japan and internationally. It offers men's, ladies’, children's socks and panty stockings, etc. The company was founded in 1920 and is headquartere...

How the Company Makes Money

NAIGAI generates revenue mainly by selling apparel products (notably legwear such as socks/hosiery and related innerwear/lifestyle items) through a mix of wholesale and retail-type channels. (1) Wholesale/B2B sales: A core earnings driver is supplyin...

NAIGAI Co., Ltd. Financial Statement Overview

Summary

Financial performance is weak. The Income Statement shows inconsistent profitability and thin margins (Score: 35). The Balance Sheet is stable with low leverage but poor returns (Score: 55). Critically, Cash Flow is a major concern with six consecutive years of negative operating and free cash flow (Score: 20). The persistent cash burn significantly drags down the overall financial health.

Income Statement

35Negative

Balance Sheet

55Neutral

Cash Flow

20Very Negative

Financial statement breakdown
Breakdown	TTM	Jan 2026	Jan 2025	Jan 2024	Jan 2023	Jan 2022
Income Statement
Total Revenue	14.45B	13.36B	13.16B	13.02B	12.71B	13.46B
Gross Profit	5.04B	4.87B	4.86B	4.72B	3.87B	5.15B
EBITDA	-101.00M	-87.00M	103.00M	94.00M	-1.06B	17.00M
Net Income	167.00M	50.00M	100.00M	112.00M	-1.55B	124.00M
Balance Sheet
Total Assets	13.24B	12.36B	11.89B	11.19B	11.35B	11.71B
Cash, Cash Equivalents and Short-Term Investments	2.88B	2.98B	3.54B	3.37B	3.95B	4.13B
Total Debt	2.22B	1.56B	1.67B	1.70B	1.84B	1.43B
Total Liabilities	6.00B	5.48B	5.33B	5.40B	5.57B	4.75B
Stockholders Equity	7.24B	6.87B	6.56B	5.79B	5.78B	6.96B
Cash Flow
Free Cash Flow	0	-358.00M	-102.00M	-411.00M	-642.00M	-629.00M
Operating Cash Flow	0	-283.00M	-35.00M	-357.00M	-528.00M	-511.00M
Investing Cash Flow	0	-60.00M	205.00M	-107.00M	-116.00M	47.00M
Financing Cash Flow	0	-224.00M	-75.00M	-156.00M	384.00M	-900.00M

NAIGAI Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price383.00

Price Trends

50DMA371.90Negative

100DMA362.48Positive

200DMA336.93Positive

Market Momentum

MACD1.18Positive

RSI37.42Neutral

STOCH31.58Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8013, the sentiment is Negative. The current price of 383.00 is above the 20-day moving average (MA) of 380.70, above the 50-day MA of 371.90, and above the 200-day MA of 336.93, indicating a neutral trend. The MACD of 1.18 indicates Positive momentum. The RSI at 37.42 is Neutral, neither overbought nor oversold. The STOCH value of 31.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:8013.

NAIGAI Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:8013 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7564	73Outperform	JPY 400.71B	17.74	―	1.81%	20.97%	24.14%
JP:8227	71Outperform	JPY 743.40B	15.62	9.11%	2.23%	5.20%	11.08%
JP:2792	67Neutral	JPY 38.93B	16.03	―	3.94%	-3.56%	-29.47%
JP:3566	64Neutral	JPY 6.89B	11.88	―	0.73%	24.69%	50.80%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:8013	48Neutral	JPY 3.03B	17.93	―	―	9.79%	―
JP:7603	38Underperform	JPY 2.30B	-0.23	―	―	9.58%	-10.49%

* General Sector Average

Performance Comparison

JP:8013 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:8013	NAIGAI Co., Ltd.	369.00	90.00	32.26%
JP:8227	SHIMAMURA Co	3359.00	99.05	3.04%
JP:2792	HONEYS HOLDINGS CO. LTD.	1397.00	-37.73	-2.63%
JP:3566	UNIFORM NEXT CO. LTD.	681.00	45.66	7.19%
JP:7564	Workman Co., Ltd.	4910.00	-832.57	-14.50%
JP:7603	Mac House Co., Ltd.	25.00	-150.00	-85.71%

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: Sep 16, 2026

NAIGAI Co., Ltd. AI Stock Analysis