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

• Market Cap: ¥199.20B
• Dividend Yield: 2.81%
• Average Volume (3M): 90.27K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.14
• Revenue Growth: 8.83%
• EPS Growth: 49.49%
• Country: JP
• Employees: 1,649
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 67.33
• 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: 80 Outperform
• Price Target: ¥4,513.00 ▲(43.50% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by strong financial performance (healthy growth, improving margins, excellent cash conversion, and very low leverage). Technicals are supportive due to a clear uptrend, but overbought readings temper the score. Valuation is reasonable with a moderate P/E and a solid dividend yield.

Positive Factors

Low leverage / strong balance sheet

The company’s extremely low debt-to-equity (0.06) and high equity ratio provide durable financial flexibility. This capital structure reduces refinancing and interest-rate risk, supports investment or M&A, and preserves resilience through downturns, enabling steady long-term operations.

Strong cash generation

Sustained improvement in free cash flow and OCF-to-net-income ratios (~1.45–1.47) demonstrates reliable conversion of profits to cash. That durable cash generation supports dividends, maintenance capex, and reinvestment without heavy external financing, enhancing long-term financial stability.

Consistent profitability and growth

Steady mid-single-digit revenue growth together with positive gross and operating margins indicates operational efficiency in building services. Robust EBITDA and ROE metrics show earnings quality that can sustain reinvestment and shareholder returns over multiple business cycles.

Negative Factors

Cyclicality of end markets

Concentration in HVAC, ventilation and building services ties revenue to construction, maintenance and public capex cycles. This structural exposure makes cashflows and backlog vulnerable to economic slowdowns or shifts in construction spending across the 2–6 month horizon and beyond.

Moderate margins limit downside buffer

Margins are positive but modest for an engineering services provider, leaving limited cushion against rising material or labor costs. In periods of input inflation or contract pressure, profitability can compress quickly, constraining reinvestment and margin recovery without pricing power gains.

Mid-single-digit revenue growth pace

Revenue growth is predictable but limited to mid-single-digits, which may restrict scale economies and market-share gains versus faster-growing peers. Over time this pace could require strategic initiatives (new services or M&A) to materially improve growth and competitive positioning.

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

Strong fundamentals driven by solid revenue growth (+7.58%), improving profitability (net margin 7.02%; EBIT 8.24%; EBITDA 10.60%), and strong cash conversion (operating cash flow to net income 1.47; free cash flow to net income 1.45). Balance sheet leverage is very low (debt-to-equity 0.06) with a healthy equity ratio (58.65%) and solid ROE (13.93%).

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Negative
• STOCH: Negative

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 3790.50, below the 50-day MA of 3502.70, and above the 200-day MA of 2948.72, indicating a bullish trend. The MACD of 164.82 indicates Negative momentum. The RSI at 72.11 is Negative, neither overbought nor oversold. The STOCH value of 87.41 is Negative, 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
1952	80 Outperform	¥199.20B	14.82	―	2.81%	8.83%	49.49%
1941	76 Outperform	¥282.69B	16.21	9.20%	2.78%	1.31%	59.20%
1939	76 Outperform	¥101.86B	18.89	―	4.38%	-0.84%	-1.80%
1959	74 Outperform	¥748.49B	22.29	―	2.15%	-5.20%	-1.20%
1945	73 Outperform	¥58.55B	14.04	―	2.95%	-7.98%	37.92%
1934	68 Neutral	¥221.53B	16.91	―	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 Confirms Strong Nine-Month Results After Audit Review

Shin Nippon Air Technologies reported consolidated results for the nine months ended December 31, 2025, confirming that its previously released figures have passed an interim review by certified public accountants with no changes. The company posted strong year-on-year growth, with net sales up 18.2% to ¥104.7 billion and profit attributable to owners of parent surging 81.5% to ¥7.0 billion, while improving its equity ratio to 64.2% and maintaining its dividend outlook following a two-for-one stock split.

Earnings per share roughly doubled on a split-adjusted basis, underscoring a substantial improvement in profitability and balance sheet strength over the prior year. The unchanged financials after audit review and stable dividend forecast signal operational robustness and may reassure investors about earnings quality and capital policy consistency.

The most recent analyst rating on (JP:1952) stock is a Buy with a Yen4204.00 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.

Shin Nippon Air Technologies Unveils Wide-Ranging Management Reshuffle for 2026

Shin Nippon Air Technologies has announced a broad reshuffle of its leadership, including the planned retirement of Director Hiroshi Natsui at the June 2026 shareholders’ meeting, after which he is slated to become a senior advisor. The move signals continuity in governance while refreshing the board’s composition as the company heads into the next fiscal year.

Effective April 1, 2026, multiple internal executives will be promoted, with Kiyoshi Inoue and Hidekatsu Noda advancing to executive managing officer roles and several others elevated to senior managing officer. At the same time, four new managing officers will be appointed from key operational posts in nuclear power, regional branches, urban facilities, and engineering, while a group of incumbent executive and senior managing officers will retire at the end of March 2026.

The company is also reallocating responsibilities among senior managers, notably shifting leadership of the Kanto and Tohoku branches and elevating managers at group subsidiaries SNK Service Co., Ltd. and SNK (China) Construction Co., Ltd. These changes are likely intended to strengthen regional oversight and subsidiary governance, aligning the leadership structure more closely with Shin Nippon Air Technologies’ business units and geographic priorities.

The most recent analyst rating on (JP:1952) stock is a Buy with a Yen4371.00 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.

Shin Nippon Air Technologies Lifts FY2026 Profit Outlook on Strong Project Margins

Shin Nippon Air Technologies revised its consolidated forecast for the fiscal year ended March 31, 2026, lifting projected net sales to 150 billion yen and profit attributable to owners of parent to 10.5 billion yen, both above previous guidance and the prior year. Management attributed the stronger outlook mainly to improved construction project profitability, which is also driving higher basic earnings per share.

Non-consolidated forecasts were also raised, with operating profit now expected to climb 22.2% over the earlier estimate and profit projected at 10.5 billion yen. The company further reported robust demand, as consolidated orders are expected to reach 177 billion yen and non-consolidated orders 154 billion yen, both substantially above prior forecasts, underscoring solid momentum in its project pipeline.

The most recent analyst rating on (JP:1952) stock is a Buy with a Yen4371.00 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.

Shin Nippon Air Technologies Lifts Earnings Outlook and Dividend on Strong Nine-Month Results

Shin Nippon Air Technologies reported strong consolidated results for the nine months ended Dec. 31, 2025, with net sales rising 18.2% year on year to ¥104.7 billion and profit attributable to owners of parent surging 81.5% to ¥7.0 billion. Operating and ordinary profit also jumped more than 60%, boosting comprehensive income and lifting the equity-to-asset ratio to 64.2%.

The company revised its full-year forecast upward, now projecting ¥150.0 billion in net sales and ¥10.5 billion in profit attributable to owners, alongside a higher annual dividend forecast of ¥110 per share after a two-for-one stock split. These moves underscore improving profitability, a stronger balance sheet and enhanced shareholder returns, signaling firmer industry positioning and better capital efficiency for investors.

The most recent analyst rating on (JP:1952) stock is a Buy with a Yen4371.00 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.