Improved Margins And Operational EfficiencyMargin expansion to a 20.25% gross margin and 7.07% net margin, plus stronger EBIT/EBITDA, indicates durable improvements in cost control and pricing. Sustained margins support reinvestment, durable profitability and better cash conversion under normal demand cycles.

Consistent Revenue And EPS GrowthDouble-digit revenue growth with outsized EPS growth shows the business is scaling with operating leverage. This trend, if sustained, reinforces competitive positioning, improves internal funding for capex/dividends, and strengthens medium-term earnings resilience.

Lower Leverage And Stronger Equity BaseA reduced debt-to-equity ratio and a >50% equity ratio materially improve financial flexibility. Lower leverage cuts interest burden and raises capacity for strategic spending or absorbing shocks, supporting stability over multiple economic cycles.

Bears Say

Declining Operating Cash FlowOperating cash flow deterioration despite positive net income signals weaker cash generation quality. If the trend continues it can constrain reinvestment, weaken the firm's ability to fund growth internally and raise reliance on external financing.

Free Cash Flow Provides Little CushionFCF roughly equals net income, leaving minimal buffer for cyclical working capital swings, capex or dividend increases. This tight cash conversion ratio reduces flexibility to absorb shocks or accelerate strategic investments without external funding.

Legacy Leverage Risk RemainsThough leverage is improved, the company's history of higher debt suggests exposure to cyclical weakness or financing sensitivity. Past leverage episodes imply governance and capital allocation must remain conservative to avoid recurrence.

6658 FAQ

What was Shirai Electronics Industrial Co., Ltd.’s price range in the past 12 months?

Shirai Electronics Industrial Co., Ltd. lowest stock price was ¥475.00 and its highest was ¥800.00 in the past 12 months.

What is Shirai Electronics Industrial Co., Ltd.’s market cap?

Shirai Electronics Industrial Co., Ltd.’s market cap is ¥12.06B.

When is Shirai Electronics Industrial Co., Ltd.’s upcoming earnings report date?

Shirai Electronics Industrial Co., Ltd.’s upcoming earnings report date is May 14, 2026 which is in 83 days.

How were Shirai Electronics Industrial Co., Ltd.’s earnings last quarter?

Shirai Electronics Industrial Co., Ltd. released its earnings results on Jan 30, 2026. The company reported ¥31.72 earnings per share for the quarter, beating the consensus estimate of N/A by ¥31.72.

Is Shirai Electronics Industrial Co., Ltd. overvalued?

According to Wall Street analysts Shirai Electronics Industrial Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Shirai Electronics Industrial Co., Ltd. pay dividends?

Shirai Electronics Industrial Co., Ltd. pays a Annually dividend of ¥35 which represents an annual dividend yield of 4.44%. See more information on Shirai Electronics Industrial Co., Ltd. dividends here

What is Shirai Electronics Industrial Co., Ltd.’s EPS estimate?

Shirai Electronics Industrial Co., Ltd.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Shirai Electronics Industrial Co., Ltd. have?

Shirai Electronics Industrial Co., Ltd. has 15,116,000 shares outstanding.

What happened to Shirai Electronics Industrial Co., Ltd.’s price movement after its last earnings report?

Shirai Electronics Industrial Co., Ltd. reported an EPS of ¥31.72 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 1.067%.

Which hedge fund is a major shareholder of Shirai Electronics Industrial Co., Ltd.?

Currently, no hedge funds are holding shares in JP:6658

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

Shirai Electronics Industrial Co., Ltd.

Shirai Electronics Industrial Co., Ltd. (6658) is a prominent player in the electronics manufacturing sector, specializing in the production of high-quality electronic components and devices. The company primarily operates in the fields of consumer electronics, industrial automation, and telecommunications, offering a diverse range of products including circuit boards, sensors, and power supplies. Shirai Electronics is committed to innovation and sustainability, ensuring its solutions meet the evolving demands of the global market.