Shinnihon Corporation (1879) AI Stock Analysis

• Market Cap: ¥108.85B
• Dividend Yield: 2.85%
• Average Volume (3M): 62.28K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.75
• Revenue Growth: 1.10%
• EPS Growth: 17.54%
• Country: JP
• Employees: 627
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): 45.58
• Shares Outstanding: 61,360,720
• 10 Day Avg. Volume: 67,190
• 30 Day Avg. Volume: 62,283
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 67 Neutral
• Price Target: ―

Shinnihon Corporation's strong financial performance and attractive valuation metrics are the primary strengths, bolstering its stock score. However, the bearish technical indicators and downward price trend weigh significantly on the overall score. The lack of earnings call data and corporate events do not provide additional context for near-term outlook.

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

Shinnihon Corporation exhibits strong financial health with robust profitability, a debt-free balance sheet, and stable cash flow generation. The company's strategic management and operational efficiency are evident in its consistent revenue growth and solid return metrics. While the cash flow growth is less clear, the overall financial position is sound.

Income Statement

Shinnihon Corporation demonstrates strong profitability with a consistent Gross Profit Margin around 16-17%. The TTM Net Profit Margin is impressive at 8.85%, showcasing efficient cost management and strong bottom-line performance. Revenue growth is steady, with a notable 10.4% increase from 2022 to 2023 and a further 2.53% increase in the TTM. EBIT and EBITDA margins are healthy, reflecting robust operational and core earnings capacity.

Balance Sheet

The company maintains a solid balance sheet with no debt, resulting in an exceptional Debt-to-Equity Ratio of 0. The Return on Equity is strong, averaging over 10% in recent years, indicating effective management of shareholder funds. The Equity Ratio remains above 65%, highlighting financial stability and low leverage, providing a strong buffer against potential market fluctuations.

Cash Flow

Cash Flow metrics show stable performance with positive Free Cash Flow across the periods. However, the Free Cash Flow Growth Rate is not calculable for the TTM due to insufficient data. Operating Cash Flow to Net Income has been consistent, but the lack of TTM data limits a comprehensive analysis. Overall, the company displays a healthy cash flow position, albeit with room for improvement in growth visibility.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	131.66B	133.52B	113.72B	107.09B	101.78B
Gross Profit	23.55B	22.88B	22.44B	19.83B	18.30B
EBITDA	18.75B	17.89B	17.56B	15.86B	14.20B
Net Income	12.82B	12.29B	12.01B	10.80B	9.63B
Balance Sheet
Total Assets	172.95B	168.15B	156.03B	140.18B	126.55B
Cash, Cash Equivalents and Short-Term Investments	82.65B	84.17B	74.60B	65.17B	62.66B
Total Debt	0.00	0.00	0.00	0.00	47.00M
Total Liabilities	50.64B	55.06B	53.60B	48.56B	44.65B
Stockholders Equity	122.31B	113.09B	102.43B	91.61B	81.90B
Cash Flow
Free Cash Flow	2.29B	11.47B	10.42B	3.65B	6.83B
Operating Cash Flow	2.65B	11.70B	10.59B	3.77B	7.00B
Investing Cash Flow	-34.43B	-247.00M	123.00M	-123.00M	-403.00M
Financing Cash Flow	-3.74B	-1.88B	-1.28B	-1.13B	-1.14B

Shinnihon Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1884.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1884 is above the 20-day moving average (MA) of 1775.05, above the 50-day MA of 1691.92, and above the 200-day MA of 1568.29, indicating a bullish trend. The MACD of 55.53 indicates Negative momentum. The RSI at 69.24 is Neutral, neither overbought nor oversold. The STOCH value of 63.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1879.

Shinnihon Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1871	84 Outperform	¥83.60B	10.36		4.02%	3.55%	36.89%
1934	78 Outperform	¥183.18B	15.25		2.54%	8.39%	54.30%
1890	75 Outperform	¥163.81B	18.34		5.05%	0.57%	26.93%
1720	69 Neutral	¥116.73B	14.49		3.52%	11.42%	26.72%
1762	69 Neutral	¥102.11B	16.30		2.47%	6.90%	-25.24%
1879	67 Neutral	¥108.85B	7.69		2.85%	1.10%	17.54%
Sector *	66 Neutral	£2.67B	12.98	3.30%	3.25%	2.40%	-23.01%

Shinnihon Corporation Corporate Events

Shinnihon Corporation Completes Off-Floor Share Distribution

Shinnihon Corporation has successfully completed the off-floor distribution of 1,060,700 shares at a price of 1,358 yen per share on the Tokyo Stock Exchange. This strategic move aims to improve the liquidity and distribution of its shares, thereby increasing the ratio of shares in circulation and potentially strengthening its market position.

Shinnihon Corporation to Enhance Share Liquidity with Off-Floor Distribution

Shinnihon Corporation has announced the off-floor distribution of 1,060,700 shares at a price of 1,358 yen per share, to be executed on February 26, 2025, at the Tokyo Stock Exchange. This move aims to enhance the liquidity and circulation of its shares, potentially impacting the company’s market presence and shareholder value.

Shinnihon Corporation Announces Off-Floor Share Distribution to Boost Liquidity

Shinnihon Corporation has announced an off-floor distribution of 1,060,700 shares scheduled from February 26 to February 28, 2025, on the Tokyo Stock Exchange. This initiative aims to enhance the liquidity and distribution of the company’s shares, although it may be subject to cancellation if market conditions become unfavorable.

Shinnihon Corporation Revises Strategy for Enhanced Valuation and Growth

Shinnihon Corporation’s board has revised its management strategy to better align with cost of capital and stock price considerations. Despite achieving a higher return on equity than its cost of capital, the company’s price book-value ratio remains below 1, highlighting a need for improved investor valuation. In response, Shinnihon plans to enhance its business growth and profitability through strategic sales efforts, eco-friendly certifications, and increased human capital investment. Additionally, shareholder returns are prioritized, with dividends increased for the fiscal year ended March 2024 and further adjustments planned for 2025.

Shinnihon Corporation Reports Increased Sales and Higher Dividends Amidst Profit Decline

Shinnihon Corporation reported a 4.2% increase in net sales for the nine months ending December 31, 2024, despite seeing slight decreases in operating, ordinary, and net income compared to the previous year. The company also announced an increase in its equity-to-asset ratio, indicating a stronger financial position, and revised its dividend forecast upward, reflecting confidence in its operations amid a challenging market environment.