Shin Nippon Air Technologies Co., Ltd. (1952) AI Stock Analysis

• Market Cap: ¥154.94B
• Dividend Yield: 2.81%
• Average Volume (3M): 90.27K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.09
• Revenue Growth: 8.83%
• EPS Growth: 49.49%
• Country: JP
• Employees: 1,649
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 52.99
• Shares Outstanding: 48,564,450
• 10 Day Avg. Volume: 93,610
• 30 Day Avg. Volume: 90,270
• PEG Ratio: 0.23
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 5.68
• 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: 73 Outperform
• Price Target: ¥3,629.00 ▲(15.39% Upside)

Shin Nippon Air Technologies Co., Ltd. achieves a solid overall stock score due to its strong financial performance, characterized by consistent revenue growth and robust profitability. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. However, technical indicators suggest a short-term bearish trend, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Consistent revenue growth

Sustained top-line growth and steady profitability indicate durable demand for the company’s HVAC solutions. This supports reinvestment, maintenance-contract expansion and steady organic scale, reducing reliance on one-off projects and underpinning multi-quarter revenue visibility.

Conservative leverage and strong equity base

Very low leverage and a high equity ratio provide financial flexibility to fund capex, absorb cyclical downturns, and pursue strategic investments without stressing cash flow. A mid-teens ROE shows efficient capital use while keeping solvency risk low over the medium term.

Strong cash generation and FCF conversion

High operating cash flow relative to net income and strong free cash flow conversion indicate durable internal funding for maintenance, R&D, dividends or selective M&A. Consistent cash generation reduces refinancing risk and supports long-term shareholder returns.

Negative Factors

Modest profit margins

Relatively modest gross and net margins limit the company’s buffer against input-cost inflation and competitive pricing pressure. Over multiple quarters this constrains ability to expand reinvestment or absorb margin shocks, potentially slowing margin improvement and capital allocation flexibility.

Exposure to construction cycle

Heavy reliance on new-build projects and developer partnerships creates structural cyclicality. Downturns in construction or real estate investment can materially reduce new orders for HVAC installations, making multi-quarter revenue and backlog growth vulnerable to macro and sector cycles.

Relatively limited scale and market liquidity

Mid-sized workforce and modest trading volume suggest limited scale versus global HVAC incumbents. This can restrict bidding for very large contracts, regional expansion pace, and bargaining power with suppliers, potentially impeding long-term market share gains and margin expansion.

Shin Nippon Air Technologies Co., Ltd. Business Overview & Revenue Model

Company Description

Shin Nippon Air Technologies Co. Ltd., together with its subsidiaries, provides engineering systems to control air, water, heat, and other areas of air conditioning, electrical, and sanitary facilities in Japan and internationally. It offers engineering solutions focusing on air conditioning for offices, shopping centers, hospitals, hotels, museums, etc. The company also engages in the creation of industrial facilities, such as clean rooms, and constant temperature and humidity rooms for semiconductor and pharmaceutical plants, research and development centers, and other facilities, as well as the construction of district heating and cooling systems. Shin Nippon Air Technologies Co., Ltd. was founded in 1930 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Shin Nippon Air Technologies generates revenue through multiple streams, primarily from the sale and installation of HVAC systems and components. The company benefits from recurring income via maintenance contracts and service agreements with clients, ensuring ongoing support and upgrades for their systems. Additionally, partnerships with construction firms and real estate developers allow for integrated solutions in new building projects, further expanding their market reach. The company's focus on energy-efficient technologies positions it well in an increasingly eco-conscious market, potentially attracting government incentives and grants that can supplement its earnings.

Shin Nippon Air Technologies Co., Ltd. Financial Statement Overview

Summary

Shin Nippon Air Technologies Co., Ltd. displays a strong financial position with consistent revenue growth, robust profitability margins, and effective cash flow management. The company maintains low leverage, contributing to financial stability and sustainable growth potential in the Engineering & Construction industry.

Income Statement

Shin Nippon Air Technologies Co., Ltd. demonstrates strong revenue growth with a 7.58% increase in the latest year. The gross profit margin stands at 15.61%, reflecting efficient cost management. Net profit margin improved to 7.02%, indicating enhanced profitability. EBIT and EBITDA margins are also robust at 8.24% and 10.60%, respectively, showcasing operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.06, indicating prudent leverage use. With an equity ratio of 58.65%, Shin Nippon shows strong asset backing by equity. ROE is 13.93%, reflecting effective use of shareholders' funds. The company exhibits solid financial stability with low risk from debt.

Cash Flow

Free cash flow has significantly improved, showcasing a strong growth trajectory. The operating cash flow to net income ratio is impressive at 1.47, suggesting strong cash generation relative to profits. Free cash flow to net income ratio of 1.45 further highlights efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.41B	137.68B	127.98B	112.23B	106.72B	107.25B
Gross Profit	23.07B	21.49B	18.70B	15.68B	14.55B	13.92B
EBITDA	15.21B	14.60B	10.73B	8.36B	8.38B	6.97B
Net Income	10.54B	9.66B	7.17B	5.60B	5.40B	4.64B
Balance Sheet
Total Assets	100.22B	118.17B	117.35B	109.15B	99.97B	98.63B
Cash, Cash Equivalents and Short-Term Investments	18.18B	20.57B	13.63B	25.00B	15.57B	12.17B
Total Debt	329.00M	3.86B	9.96B	3.73B	4.21B	6.94B
Total Liabilities	31.25B	48.87B	51.76B	50.94B	46.16B	47.93B
Stockholders Equity	68.97B	69.29B	65.59B	58.21B	53.81B	50.70B
Cash Flow
Free Cash Flow	0.00	14.03B	-14.72B	12.11B	6.81B	1.68B
Operating Cash Flow	0.00	14.24B	-13.56B	12.82B	7.00B	1.92B
Investing Cash Flow	0.00	2.05B	-783.00M	-1.17B	414.00M	309.00M
Financing Cash Flow	0.00	-10.18B	2.52B	-2.27B	-4.41B	-2.50B

Shin Nippon Air Technologies Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3145.00
• 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:1952, the sentiment is Positive. The current price of 3145 is below the 20-day moving average (MA) of 3205.25, above the 50-day MA of 3124.58, and above the 200-day MA of 2651.66, indicating a bullish trend. The MACD of 44.14 indicates Negative momentum. The RSI at 61.23 is Neutral, neither overbought nor oversold. The STOCH value of 63.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1952.

Shin Nippon Air Technologies Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1965	78 Outperform	¥145.01B	15.93	―	1.55%	20.44%	106.45%
1982	77 Outperform	¥112.70B	18.09	―	2.14%	4.81%	-1.16%
1946	77 Outperform	¥192.12B	12.38	―	3.09%	3.75%	87.00%
1952	73 Outperform	¥154.94B	12.73	―	2.81%	8.83%	49.49%
1945	73 Outperform	¥61.88B	17.35	―	2.95%	-7.98%	37.92%
1934	68 Neutral	¥195.58B	16.31	―	2.87%	6.66%	46.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Shin Nippon Air Technologies Co., Ltd. Corporate Events

Shin Nippon Air Technologies Reports Strong Half-Year Financial Results

Shin Nippon Air Technologies Co., Ltd. reported strong financial results for the six months ended September 30, 2025, with significant year-on-year growth in net sales, operating profit, ordinary profit, and profit attributable to owners of the parent. The company’s comprehensive income also saw a substantial increase, reflecting its robust operational performance. The announcement indicates a positive outlook for the company, with stable financial positioning and a commitment to maintaining dividend payments, which could enhance shareholder value.

The most recent analyst rating on (JP:1952) stock is a Buy with a Yen3293.00 price target. To see the full list of analyst forecasts on Shin Nippon Air Technologies Co., Ltd. stock, see the JP:1952 Stock Forecast page.