Shinnihon Corporation (1879) AI Stock Analysis

• Market Cap: ¥120.66B
• Dividend Yield: 2.81%
• Average Volume (3M): 64.00K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.67
• 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

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	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: Positive
• Last Price: 2024.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 2024 is above the 20-day moving average (MA) of 2016.05, above the 50-day MA of 1926.38, and above the 200-day MA of 1746.31, indicating a bullish trend. The MACD of 35.13 indicates Positive momentum. The RSI at 66.68 is Neutral, neither overbought nor oversold. The STOCH value of 81.28 is Negative, 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
1879	80 Outperform	¥120.66B	8.84	―	2.81%	-3.99%	13.29%
1871	79 Outperform	¥138.70B	15.69	―	3.13%	5.39%	33.02%
1762	73 Outperform	¥126.57B	13.76	―	2.13%	7.22%	21.92%
1720	69 Neutral	¥140.18B	13.14	―	2.89%	20.38%	128.85%
1934	68 Neutral	¥195.58B	16.08	―	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.