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

• Market Cap: ¥7.72B
• Dividend Yield: N/A
• Average Volume (3M): 119.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: -24.31%
• EPS Growth: 56.72%
• Country: JP
• Employees: 47
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): N/A
• 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: 47 Neutral
• Price Target: ¥690.00 ▲(73.80% Upside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held down primarily by weak financial performance (sharp revenue decline, negative margins, and negative operating/free cash flow). Technicals provide partial support via a strong uptrend and positive MACD, but overbought indicators (high RSI/Stoch) add near-term risk. Valuation is also a constraint due to negative earnings (negative P/E) and no visible dividend yield support.

Positive Factors

Low leverage

A low debt-to-equity ratio of 0.12 provides durable financial flexibility, reducing refinancing risk and interest burden. This structural strength supports the company's ability to fund operations or strategic moves during downturns and preserves capacity to invest when revenues recover.

High gross margin

A 57.3% gross margin indicates strong unit economics or pricing power in core products, giving the company room to absorb SG&A and operational headwinds. Sustained high gross margin supports long-term margin recovery if operating efficiencies and revenue mix improve.

Solid equity base

A solid equity base relative to assets reduces solvency risk and underpins creditworthiness. Over a 2-6 month horizon it provides a buffer against losses, supports access to capital if needed, and gives management optionality for restructuring or strategic investments.

Negative Factors

Sharp revenue decline

A 66.4% revenue drop is a structural red flag that erodes scale, bargaining power, and operating leverage. Persistently reduced top-line weakens the business model, makes fixed costs harder to cover, and lengthens recovery timelines even if margins or cash flow improve.

Negative cash flow

Negative operating and free cash flows indicate the business is not internally funding its operations, creating reliance on external financing. Over months this constrains investment, limits ability to stabilize operations, and raises liquidity and survivability concerns.

Weak profitability metrics

Negative net and operating margins with ROE of -6.1% show the company is destroying value on current operations. Structural profitability weakness reduces reinvestment capacity, makes scaling difficult, and pressures management to deliver turnarounds or strategic changes.

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

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SHINWA WISE HOLDINGS CO. LTD. Financial Statement Overview

Summary

Financials are weak: revenue fell sharply (-66.4%) and profitability is negative (net margin -6.9% with negative EBIT/EBITDA margins). Balance sheet leverage is manageable (debt-to-equity 0.12) but returns are poor (ROE -6.1%), and cash flow is pressured with negative operating and free cash flow.

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	Aug 2024	May 2023	May 2023	May 2021	May 2021
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	5.05B	4.16B	3.24B
Cash, Cash Equivalents and Short-Term Investments	916.67M	1.22B	1.34B	2.27B	1.31B	477.58M
Total Debt	283.69M	292.57M	328.12M	273.43M	409.66M	434.62M
Total Liabilities	553.26M	965.19M	1.83B	1.50B	1.13B	1.46B
Stockholders Equity	2.12B	2.35B	2.41B	3.56B	3.02B	1.78B
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: Positive
• 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 Positive. The current price of 397 is below the 20-day moving average (MA) of 690.35, below the 50-day MA of 583.54, and above the 200-day MA of 372.76, indicating a bullish trend. The MACD of 47.80 indicates Positive momentum. The RSI at 55.50 is Neutral, neither overbought nor oversold. The STOCH value of 32.69 is Neutral, 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
4331	69 Neutral	¥10.17B	5.24	―	5.06%	0.36%	81.58%
7358	68 Neutral	¥13.96B	12.08	―	2.82%	7.95%	13.67%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
9262	61 Neutral	¥9.74B	8.03	―	2.04%	10.87%	14.80%
2305	58 Neutral	¥32.76B	5.66	―	2.48%	-4.39%	31.40%
2437	47 Neutral	¥7.72B	-13.68	―	―	-24.31%	56.72%
4679	47 Neutral	¥2.59B	11.92	―	―	-6.45%	99.39%