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

• Market Cap: ¥4.16B
• Dividend Yield: N/A
• Average Volume (3M): 119.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -24.31%
• EPS Growth: 56.72%
• Country: JP
• Employees: 47
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): -15.52
• Shares Outstanding: 11,017,818
• 10 Day Avg. Volume: 48,160
• 30 Day Avg. Volume: 119,986
• PEG Ratio: 0.27
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 1.64
• P/FCF Ratio: -14.88
• 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: 55 Neutral
• Price Target: ¥426.00 ▲(7.30% Upside)

The overall stock score reflects significant financial challenges, including declining revenues and negative profitability, which weigh heavily on the company's outlook. However, strong technical indicators suggest positive market momentum, providing some optimism. The valuation is constrained by a negative P/E ratio and lack of dividend yield, further impacting the stock's attractiveness.

Positive Factors

Business Model Strength

The company's diversified revenue streams, including direct sales, partnerships, and online channels, provide a stable income base and resilience against market fluctuations.

Market Position

Strategic partnerships expand market reach and product offerings, strengthening the company's competitive position and supporting long-term growth.

Innovation in Product Development

Ongoing innovation helps the company stay competitive by attracting new customers and retaining existing ones, crucial for sustaining growth in dynamic markets.

Negative Factors

Revenue Decline

A sharp revenue decline indicates potential loss of market share or demand, posing risks to long-term financial health and operational sustainability.

Profitability Challenges

Negative profitability margins suggest operational inefficiencies and cost management issues, which could hinder future investments and growth opportunities.

Cash Flow Issues

Negative cash flows indicate challenges in generating sufficient cash from operations, potentially affecting the company's ability to fund growth and meet obligations.

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

Company Description

Shinwa Wise Holdings Co.,Ltd., together with its subsidiaries, operates as an auction company in Japan. The company operates an art dealing and gallery management business; sells asset defense diamonds; microfinance; medical and cultural support; and real estate business. It also sells electricity, as well as involved in solar power generation facilities business. The company was formerly known as Shinwa Art Auction Co.,Ltd. and changed its name to Shinwa Wise Holdings Co.,Ltd. in December 2017. Shinwa Wise Holdings Co.,Ltd. was incorporated in 1989 and is based in Chuo, Japan.

How the Company Makes Money

SHINWA WISE HOLDINGS generates revenue primarily through the sale of its precision measuring instruments and tools. The company has established several key revenue streams, including direct sales to industrial clients, partnerships with distributors, and online sales channels. The firm also benefits from recurring revenue through maintenance contracts and calibration services for its products. Significant partnerships with manufacturers and suppliers in the industrial sector enhance its market reach and product offerings, contributing to consistent earnings growth. Additionally, SHINWA WISE leverages innovation in product development to meet evolving industry standards, which helps attract new customers and retain existing ones.

SHINWA WISE HOLDINGS CO. LTD. Financial Statement Overview

Summary

The company faces significant financial challenges, with declining revenues, negative profitability, and cash flow issues. Despite a manageable debt level, the negative net profit margin and cash flow inefficiencies are concerning.

Income Statement

The company has experienced significant revenue decline, with a negative revenue growth rate of -66.4% in the most recent year. Gross profit margin is relatively strong at 57.3%, but the net profit margin is negative at -6.9%, indicating profitability challenges. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.12, suggesting manageable leverage. However, the return on equity is negative at -6.1%, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is not explicitly provided, but the company maintains a solid equity base relative to its assets.

Cash Flow

The company has negative operating and free cash flows, with a free cash flow to net income ratio of 1.08, indicating cash flow challenges. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting income into cash. Free cash flow growth is not applicable due to negative values.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.64B	2.07B	2.04B	3.49B	2.63B	2.81B
Gross Profit	910.35M	1.18B	1.06B	1.77B	1.50B	777.00M
EBITDA	-189.37M	-53.18M	-826.41M	645.88M	534.08M	97.00M
Net Income	-401.94M	-142.34M	-1.01B	305.03M	144.44M	23.37M
Balance Sheet
Total Assets	2.68B	3.31B	4.24B	4.97B	4.37B	3.03B
Cash, Cash Equivalents and Short-Term Investments	916.00M	1.22B	1.34B	2.27B	1.31B	477.58M
Total Debt	282.00M	292.57M	328.12M	363.43M	827.00M	434.62M
Total Liabilities	554.00M	965.19M	1.83B	1.74B	1.60B	1.56B
Stockholders Equity	2.12B	2.35B	2.41B	3.23B	3.02B	1.48B
Cash Flow
Free Cash Flow	0.00	-227.57M	-898.71M	847.53M	547.72M	739.78M
Operating Cash Flow	0.00	-210.88M	-809.78M	1.18B	136.00M	758.68M
Investing Cash Flow	0.00	22.89M	-250.75M	221.70M	43.00M	-16.91M
Financing Cash Flow	0.00	67.74M	143.90M	-311.00M	315.00M	-578.35M

SHINWA WISE HOLDINGS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 397.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2437, the sentiment is Positive. The current price of 397 is above the 20-day moving average (MA) of 301.50, above the 50-day MA of 284.52, and above the 200-day MA of 320.50, indicating a bullish trend. The MACD of 33.38 indicates Negative momentum. The RSI at 68.85 is Neutral, neither overbought nor oversold. The STOCH value of 86.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	82 Outperform	¥4.82B	8.10	―	2.39%	-0.64%	24.31%
5870	81 Outperform	¥6.06B	15.47	―	1.32%	18.31%	102.31%
2424	69 Neutral	¥3.63B	15.76	―	1.24%	6.77%	40.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
2437	55 Neutral	¥4.16B	-9.86	―	―	-24.31%	56.72%
7127	54 Neutral	¥4.81B	-71.93	―	―	12.42%	4.67%
6181	41 Neutral	¥3.73B	-3.51	―	―	4.74%	-8577.95%