SHINWA WISE HOLDINGS CO. LTD. (2437) AI Stock Analysis

• Market Cap: ¥3.35B
• Dividend Yield: 1.71%
• Average Volume (3M): 70.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -23.47%
• EPS Growth: -100.94%
• Country: JP
• Employees: 47
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Personal Products & Services
• EPS (TTM): -15.53
• Shares Outstanding: 11,017,818
• 10 Day Avg. Volume: 38,850
• 30 Day Avg. Volume: 70,793
• PEG Ratio: 0.11
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.42
• 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: ¥271.00
• Price Target Upside: -10.56% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: ¥296.00 ▼(-2.31%Downside)

SHINWA WISE HOLDINGS CO. LTD. is currently facing significant financial and valuation challenges, which are the primary drivers of its low score. The technical analysis adds further concerns with bearish trends. Financial performance issues, including declining revenue and profitability, along with liquidity problems, are the most significant factors impacting the score.

SHINWA WISE HOLDINGS CO. LTD. Business Overview & Revenue Model

Company Description

SHINWA WISE HOLDINGS CO. LTD. (2437) is a Japanese company primarily engaged in the auction and trading of art, antiques, and luxury items. The company operates in sectors such as art auctions, real estate, and logistics, offering a range of services that facilitate the buying, selling, and valuation of high-value items. SHINWA WISE HOLDINGS is known for its expertise in handling art pieces, collectibles, and rare items, catering to collectors, investors, and institutions.

How the Company Makes Money

SHINWA WISE HOLDINGS CO. LTD. generates revenue primarily through commissions and fees from auction sales and trading activities. The company organizes auctions where it charges sellers a commission on the sale price of items, as well as buyers for acquiring items. Additionally, the company may earn from appraisal services and consulting fees related to art and antiques. Real estate and logistics sectors contribute through property sales, rentals, and transportation services for valuable items. Strategic partnerships with art galleries, museums, and collectors can enhance its revenue streams by expanding its network and client reach.

SHINWA WISE HOLDINGS CO. LTD. Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenue and profitability. The income statement shows substantial revenue decline, while the balance sheet indicates a stable but declining equity position. Cash flow issues are severe, with negative cash flow metrics highlighting liquidity concerns.

Income Statement

The income statement shows significant deterioration, with the company experiencing a substantial decline in revenue and profitability. The TTM Gross Profit Margin is 52.24%, but the Net Profit Margin has turned negative at -49.66%. Revenue has decreased by 44.18% compared to the previous year, indicating significant challenges in maintaining sales. Both EBIT and EBITDA margins are negative, reflecting operational inefficiencies and potentially poor cost management.

Balance Sheet

The balance sheet reveals a mixed picture. The Debt-to-Equity ratio is relatively low at 0.14, suggesting conservative leverage. However, the Return on Equity (ROE) has turned negative, indicating the company is not generating profit from shareholders' equity. The Equity Ratio is moderate at 56.74%, showing a balanced capital structure, but the declining equity base reflects underlying profitability challenges.

Cash Flow

The cash flow analysis is concerning, with Free Cash Flow growth turning negative from a previous positive trend. The Operating Cash Flow to Net Income ratio is negative, indicating cash outflows exceed the net income, highlighting challenges in cash generation. The Free Cash Flow to Net Income ratio is also negative, reinforcing liquidity issues.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.20B	2.04B	3.65B	2.63B	2.81B	1.72B
Gross Profit	1.23B	1.06B	1.79B	1.50B	927.08M	506.63M
EBITDA	-450.86M	-826.41M	645.88M	463.41M	285.56M	-279.84M
Net Income	-709.79M	-1.01B	373.72M	144.44M	23.37M	-305.70M
Balance Sheet
Total Assets	3.91B	4.24B	5.05B	4.16B	3.24B	3.09B
Cash, Cash Equivalents and Short-Term Investments	1.10B	1.34B	2.27B	1.31B	477.58M	317.89M
Total Debt	309.00M	328.12M	273.43M	409.66M	434.62M	506.84M
Total Liabilities	1.34B	1.83B	1.50B	1.13B	1.46B	1.32B
Stockholders Equity	2.57B	2.41B	3.56B	3.02B	1.78B	1.76B
Cash Flow
Free Cash Flow	0.00	-898.71M	847.53M	547.72M	739.78M	28.07M
Operating Cash Flow	0.00	-809.78M	852.44M	554.70M	758.68M	36.15M
Investing Cash Flow	0.00	-250.75M	221.70M	43.00M	-16.91M	322.02M
Financing Cash Flow	0.00	143.90M	16.90M	-103.21M	-578.35M	-932.15M

SHINWA WISE HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 303.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2437, the sentiment is Negative. The current price of 303 is below the 20-day moving average (MA) of 303.20, below the 50-day MA of 328.18, and below the 200-day MA of 307.71, indicating a bearish trend. The MACD of -5.81 indicates Negative momentum. The RSI at 45.79 is Neutral, neither overbought nor oversold. The STOCH value of 27.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:2437.

SHINWA WISE HOLDINGS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6060	83 Outperform	¥3.92B	9.97		2.94%	0.82%	-33.69%
5870	75 Outperform	¥3.65B	15.33		2.19%	―	―
2424	74 Outperform	¥3.96B	9.32		1.14%	1.35%	17.94%
Sector *	63 Neutral	$16.82B	11.32	-7.02%	2.91%	1.72%	-24.85%
7127	58 Neutral	¥4.69B	―		―	9.28%	-317.61%
6181	48 Neutral	¥3.53B	278.94		―	5.55%	-24579.42%
2437	45 Neutral	¥3.35B	―		1.71%	-23.47%	-100.94%