Shinnihon Corporation (1879) AI Stock Analysis

• Market Cap: ¥116.63B
• Dividend Yield: 2.81%
• Average Volume (3M): 64.00K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.70
• Revenue Growth: -3.99%
• EPS Growth: 13.29%
• Country: JP
• Employees: 627
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 43.09
• Shares Outstanding: 61,360,720
• 10 Day Avg. Volume: 98,240
• 30 Day Avg. Volume: 64,003
• PEG Ratio: 1.65
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 39.96
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥2,330.00 ▲(15.12% Upside)

The score is primarily supported by strong financial quality—especially the near-zero leverage balance sheet and healthy margins—alongside an attractive valuation (low P/E and a ~2.8% yield). Technicals add support via an established uptrend, while the main risk tempering the score is volatility in operating cash flow and the recent revenue decline.

Positive Factors

Balance Sheet Strength

A near-zero leverage balance sheet provides financial stability and flexibility, allowing the company to invest in growth opportunities without the burden of debt.

Profitability

Strong profitability margins indicate efficient operations and pricing power, supporting sustainable earnings and the ability to weather economic fluctuations.

Dividend Policy

Increasing dividends demonstrate confidence in financial health and commitment to returning value to shareholders, enhancing investor trust and long-term appeal.

Negative Factors

Revenue Decline

A decline in revenue growth can indicate challenges in market demand or competitive pressures, potentially impacting future profitability and market position.

Cash Flow Volatility

Volatile cash flow undermines financial predictability and can strain liquidity, complicating long-term planning and investment strategies.

Leadership Changes

Leadership changes can disrupt strategic continuity and operational efficiency, potentially affecting company performance and strategic execution in the medium term.

Shinnihon Corporation Business Overview & Revenue Model

Company Description

Shinnihon Corporation operates as a construction company in Japan. The company constructs apartment buildings, government offices, hotels, office buildings, shopping centers, stores, hospitals and welfare facilities, and factories. It also develops, sells, and rents condominiums and detached houses, as well as plans and develops commercial facilities, offices, warehouses, etc. The company was founded in 1923 and is based in Chiba, Japan.

How the Company Makes Money

Shinnihon Corporation generates revenue primarily through its construction contracts. The company's key revenue streams include project fees for construction services, design and engineering consultancy fees, and maintenance and management services for completed projects. Shinnihon Corporation often secures contracts through competitive bidding processes and has established significant partnerships with government agencies and private sector clients, ensuring a steady pipeline of projects. The company's earnings are significantly influenced by the volume and scale of construction projects, which can vary based on economic conditions and government infrastructure spending policies.

Shinnihon Corporation Financial Statement Overview

Summary

Strong overall fundamentals driven by a very conservative balance sheet (effectively zero debt) and healthy profitability (EBIT margin ~14%, net margin ~9%–11%). Offsetting factors are weaker growth momentum (revenue down ~3.8% in 2025) and volatile operating cash flow (notably weak in 2022 and 2025), which reduces confidence in consistency of cash generation.

Income Statement

Profitability is a clear strength: gross margin has generally held in the high-teens (about 17%–20%) and operating profitability remains strong, with EBIT margin still near ~14% in 2025. Net margin is also healthy for the industry (roughly 9%–11% across the period). The main weakness is growth momentum—revenue declined in 2025 (about -3.8%) after modest growth in prior years, and margins have eased from the peak levels seen around 2022–2023.

Balance Sheet

The balance sheet is very conservative: total debt is effectively zero in recent years (and minimal even in 2020–2021), resulting in near-zero leverage. Equity has steadily grown (from ~¥73B in 2020 to ~¥122B in 2025), supporting a solid financial cushion. Returns on equity are consistently respectable (~10%–14%), though they have drifted down versus earlier levels, suggesting incremental profitability has moderated as the equity base expanded.

Cash Flow

Free cash flow conversion to earnings is generally strong (free cash flow has been close to net income in most years), which supports earnings quality. However, operating cash flow is notably volatile: it fell sharply in 2022 and again in 2025 (to ~¥2.7B), despite solid reported profits, indicating working-capital swings and less consistent cash generation. This variability is the key risk factor in the cash flow profile.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	135.93B	131.66B	133.52B	113.72B	107.09B	101.78B
Gross Profit	25.36B	23.55B	22.88B	22.44B	19.83B	18.30B
EBITDA	20.61B	18.75B	17.89B	17.56B	15.86B	14.20B
Net Income	14.17B	12.82B	12.29B	12.01B	10.80B	9.63B
Balance Sheet
Total Assets	167.97B	172.95B	168.15B	156.03B	140.18B	126.55B
Cash, Cash Equivalents and Short-Term Investments	72.91B	82.65B	84.17B	74.60B	65.17B	62.66B
Total Debt	0.00	0.00	0.00	0.00	0.00	47.00M
Total Liabilities	44.78B	50.64B	55.06B	53.60B	48.56B	44.65B
Stockholders Equity	123.19B	122.31B	113.09B	102.43B	91.61B	81.90B
Cash Flow
Free Cash Flow	0.00	2.29B	11.47B	10.42B	3.65B	6.83B
Operating Cash Flow	0.00	2.65B	11.70B	10.59B	3.77B	7.00B
Investing Cash Flow	0.00	-34.43B	-247.00M	123.00M	-123.00M	-403.00M
Financing Cash Flow	0.00	-3.74B	-1.88B	-1.28B	-1.13B	-1.14B

Shinnihon Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2024.00
• 50DMA: Negative
• 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:1879, the sentiment is Negative. The current price of 2024 is below the 20-day moving average (MA) of 2061.00, above the 50-day MA of 2005.92, and above the 200-day MA of 1792.40, indicating a neutral trend. The MACD of -2.99 indicates Positive momentum. The RSI at 39.85 is Neutral, neither overbought nor oversold. The STOCH value of 24.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1879.

Shinnihon Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1879	80 Outperform	¥116.63B	8.55	―	2.81%	-3.99%	13.29%
1871	75 Outperform	¥141.83B	16.04	―	3.13%	5.39%	33.02%
1762	73 Outperform	¥117.49B	12.77	―	2.13%	7.22%	21.92%
1720	69 Neutral	¥133.69B	12.53	―	2.89%	20.38%	128.85%
1934	68 Neutral	¥186.06B	14.21	―	2.87%	6.66%	46.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Shinnihon Corporation Corporate Events

Shinnihon Corporation Increases Interim Dividends Amid Strong Financial Performance

Shinnihon Corporation announced an increase in interim dividends to 30 yen per share, up from the previous forecast of 28 yen, reflecting strong financial performance in the second quarter. This decision aligns with the company’s policy of balancing profit distribution with the retention of earnings to strengthen its financial structure and support future business development.

Shinnihon Corporation Reports Strong Financial Performance for H1 2025

Shinnihon Corporation reported a positive financial performance for the six months ending September 30, 2025, with net sales increasing by 2.5% year-on-year to ¥56,010 million. The company also saw significant growth in operating income, ordinary income, and net income attributable to owners of the parent, reflecting a robust operational performance. The equity-to-asset ratio improved to 73.1%, indicating a strong financial position. The company maintained its dividend forecast, signaling confidence in its ongoing financial health.