Conservative Balance SheetLow leverage and a growing equity base provide durable financial flexibility. With debt ~0.19x equity the company can better withstand steel-cycle volatility, fund opportunistic capex or dividends, and access credit without immediate refinancing pressure over the next several months.

Sustained Profitability And Gross Margin ImprovementAn improved gross margin to ~25% while staying profitable suggests structural cost control or improved product mix. This helps preserve operating cash in down cycles and supports margin recovery even if top-line growth is weak, aiding medium-term earnings stability.

Stable Shareholder Returns (dividend Yield)A ~3.1% dividend yield indicates a consistent capital-return policy that disciplines cash allocation. For income-focused investors, a sustainable dividend supports total returns and signals management prioritizes steady distributions, assuming cash generation normalizes.

Bears Say

Declining Revenue TrendTwo consecutive years of revenue decline indicate weakening demand or loss of share, eroding top-line momentum. Persistent top-line weakness reduces operating leverage, limits reinvestment capacity and makes margin recovery and sustainable growth more challenging over a 2–6 month horizon.

Volatile And Weakened Cash GenerationSharp falls in operating cash flow and highly variable free cash flow undermine the firm's ability to fund capex, pay dividends, or reduce debt reliably. This raises execution risk for strategic initiatives and increases dependence on the balance sheet during adverse periods.

Margin Compression And Softer ReturnsDeclining net margins and lower ROE point to weaker profitability relative to capital employed. Reduced returns constrain the company’s ability to generate shareholder value and reinvest profitably, raising structural questions about competitiveness and long-term earnings power.

5542 FAQ

What was Shinhokoku Material Corp.’s price range in the past 12 months?

Shinhokoku Material Corp. lowest stock price was ¥580.00 and its highest was ¥842.00 in the past 12 months.

What is Shinhokoku Material Corp.’s market cap?

Shinhokoku Material Corp.’s market cap is ¥5.43B.

When is Shinhokoku Material Corp.’s upcoming earnings report date?

Shinhokoku Material Corp.’s upcoming earnings report date is May 13, 2026 which is in 81 days.

How were Shinhokoku Material Corp.’s earnings last quarter?

Shinhokoku Material Corp. released its earnings results on Feb 10, 2026. The company reported ¥5.99 earnings per share for the quarter, beating the consensus estimate of N/A by ¥5.99.

Is Shinhokoku Material Corp. overvalued?

According to Wall Street analysts Shinhokoku Material Corp.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Shinhokoku Material Corp. pay dividends?

Shinhokoku Material Corp. pays a Semiannually dividend of ¥15 which represents an annual dividend yield of 2.77%. See more information on Shinhokoku Material Corp. dividends here

What is Shinhokoku Material Corp.’s EPS estimate?

Shinhokoku Material Corp.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Shinhokoku Material Corp. have?

Shinhokoku Material Corp. has 7,020,000 shares outstanding.

What happened to Shinhokoku Material Corp.’s price movement after its last earnings report?

Shinhokoku Material Corp. reported an EPS of ¥5.99 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 2.211%.

Which hedge fund is a major shareholder of Shinhokoku Material Corp.?

Currently, no hedge funds are holding shares in JP:5542

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Shinhokoku Material Corp.

Shinhokoku Material Corp. engages in the manufacture and sale of special alloy materials, and precision processed products in Japan. It offers low thermal expansion alloy castings for semiconductor and FPD manufacturing equipment industries; high-temperature alloy castings for the steel industry; precision processed parts for semiconductor and FPD manufacturing equipment; and forged products, including bars, wires, etc. The company also provides steel pipe manufacturing tools, electrical resistance materials, special welding rod core wires, contract drawing wire processing, etc. In addition, it is also involved in real estate leasing business. The company was formerly known as Shinhokoku Steel Corporation and changed its name to Shinhokoku Material Corp. in October 2021. Shinhokoku Material Corp. was founded in 1939 and is headquartered in Kawagoe, Japan.