Shinyei Kaisha (3004) AI Stock Analysis

• Market Cap: ¥11.04B
• Dividend Yield: 3.84%
• Average Volume (3M): 18.98K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.46
• Revenue Growth: 5.86%
• EPS Growth: 44.77%
• Country: JP
• Employees: 467
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 95.30
• Shares Outstanding: 4,168,500
• 10 Day Avg. Volume: 14,970
• 30 Day Avg. Volume: 18,983
• PEG Ratio: -0.25
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 11.15
• 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: 75 Outperform
• Price Target: ¥3,074.00 ▲(26.61% Upside)
• Action: Upgraded Date: 11/01/25
• Date: Action: Upgraded 11/01/25

The overall stock score of 75.1 reflects strong valuation metrics, with a low P/E ratio and attractive dividend yield being the most significant factors. Technical analysis supports a positive trend, with the stock trading above key moving averages. Financial performance is stable, with improvements in profitability and cash flow, though high leverage remains a concern.

Positive Factors

Improved profitability and ROE

A sustained ROE around 15% indicates efficient use of equity and management’s ability to generate profits from capital. This level supports long-term reinvestment, dividend capacity and signals operational improvements that can persist beyond short-term cycles.

Recovering operating and free cash flow

A shift to positive operating cash flow and rising free cash flow improves financial flexibility, enabling debt paydown, capital expenditures, and dividends. Strong cash conversion reduces dependence on external financing and supports durable funding for growth initiatives.

Diversified business model and distribution network

Multiple business lines and vertical activities (sourcing, processing, sales) across domestic and overseas channels reduce single-market exposure. This diversification helps smooth revenue cycles, leverage cross-selling, and preserve margins during localized demand shocks.

Negative Factors

Relatively high leverage

A debt-to-equity ratio ~1.52 leaves limited financial flexibility and raises interest burden risk. In a downturn or rising rates environment, servicing debt can pressure cash flow and constrain capital allocation, making sustained deleveraging essential for long-term stability.

Flat/modest revenue growth

Relatively flat top-line expansion limits room for scale-driven margin gains and makes profit improvement dependent on efficiency or pricing. Slow revenue growth reduces optionality for investments and heightens sensitivity to competitive pressures over the medium term.

Low net profit margin

A net margin near 3.3% provides a thin buffer against cost swings or input-price inflation. Low absolute profitability constrains internal reinvestment and makes earnings more vulnerable to cyclical downturns, requiring continued focus on cost control and margin management.

Shinyei Kaisha Business Overview & Revenue Model

Company Description

Shinyei Kaisha engages in the apparel and textiles, foodstuffs, general merchandise, and electronics businesses worldwide. It provides a range of clothing products for men, women, and children; legwear products; and fabrics for clothing and industrial applications. The company is also involved in the retail sale of apparel and fashion accessories. In addition, it offers frozen and fresh vegetables, frozen processed foods, and frozen marine products; and peanuts and nuts, spices, and additives. Further, the company provides consulting and materials supply related to disaster prevention; exports construction machinery, ball bearings, and testing machinery and sensors; sells casting products, filaments and brush products, household products and related materials, and architectural hardware and materials for apartments and condominiums; and handles ball bearings, testing machinery, and other commercial materials. Additionally, it offers real estate management and brokerage services; sells electronic equipment, electronic components, and other commodities, as well as insurance policies; develops, produces and sells sensors and measuring instruments, testing machinery, and capacitors; provides consulting for testing and measurement; and engages in research and development for agriculture-related business. The company was formerly known as Shinyei Kiito Kaisha and changed its name to Shinyei Kaisha in August 1966. Shinyei Kaisha was founded in 1887 and is headquartered in Kobe, Japan.

How the Company Makes Money

Shinyei Kaisha generates revenue through the sale of its core products, which include advanced environmental measurement devices that cater to both industrial and consumer markets. The company’s revenue model is driven by direct sales of its measurement equipment, as well as service contracts and maintenance agreements for these devices. Key revenue streams include sales of air quality monitoring systems to government agencies, industrial clients, and research institutions. Additionally, the company may engage in partnerships with technology firms and academic institutions to enhance product development and expand its market reach, further contributing to its earnings. Strategic collaborations and participation in environmental initiatives also bolster its reputation and lead to increased sales opportunities.

Shinyei Kaisha Financial Statement Overview

Summary

Shinyei Kaisha demonstrates a stable financial position with improved profitability and equity strength. Despite the flat revenue growth, the company has enhanced its net profit margin and return on equity, suggesting efficient operations. Cash flow improvements indicate stronger liquidity management. However, high leverage remains a concern and poses potential risks if not managed prudently.

Income Statement

The company's income statement reflects steady revenue with a modest growth trajectory over the past few years. Gross profit margin remains healthy at around 21%, and the net profit margin has improved significantly from a loss in 2020 to positive in subsequent years, reaching approximately 3.3% in 2025. EBIT and EBITDA margins are stable, indicating efficient operational management. However, revenue growth is relatively flat, posing a challenge for future expansion.

Balance Sheet

Shinyei Kaisha's balance sheet shows a significant improvement in stockholders' equity, which enhanced the equity ratio to around 31.9% in 2025, indicating a stronger financial position. The debt-to-equity ratio has decreased, showing reduced leverage, but remains relatively high at 1.52, suggesting potential risk if debt levels increase. Return on equity has improved to about 15%, reflecting efficient use of equity capital. However, a high total debt level could pose challenges if not managed carefully.

Cash Flow

The cash flow statements reveal a positive trend in operating cash flow, with a recovery from negative to positive figures over recent years. Free cash flow has also increased, indicating better cash management and capital efficiency. The free cash flow to net income ratio has improved, demonstrating effective conversion of profits into cash flow. However, fluctuations in operating cash flow highlight potential volatility in cash generation ability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	40.89B	40.16B	40.20B	39.89B	37.69B	37.27B
Gross Profit	8.55B	8.40B	8.59B	8.00B	7.21B	7.34B
EBITDA	2.54B	2.00B	2.41B	1.74B	1.22B	1.13B
Net Income	1.76B	1.32B	1.66B	949.00M	474.00M	500.00M
Balance Sheet
Total Assets	27.11B	27.56B	26.57B	24.16B	23.59B	21.19B
Cash, Cash Equivalents and Short-Term Investments	1.22B	1.15B	1.46B	1.25B	1.18B	1.35B
Total Debt	13.70B	13.34B	13.66B	14.48B	14.91B	13.69B
Total Liabilities	18.23B	18.77B	18.96B	19.51B	20.16B	18.52B
Stockholders Equity	8.88B	8.79B	7.61B	4.65B	3.43B	2.67B
Cash Flow
Free Cash Flow	0.00	588.00M	1.19B	538.00M	-1.53B	1.93B
Operating Cash Flow	0.00	662.00M	1.31B	598.00M	-1.29B	2.12B
Investing Cash Flow	0.00	-5.00M	-84.00M	-70.00M	-264.00M	-224.00M
Financing Cash Flow	0.00	-1.01B	-1.03B	-484.00M	1.35B	-1.72B

Shinyei Kaisha Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2428.00
• 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:3004, the sentiment is Positive. The current price of 2428 is below the 20-day moving average (MA) of 2692.35, below the 50-day MA of 2555.78, and above the 200-day MA of 2188.90, indicating a bullish trend. The MACD of 52.20 indicates Positive momentum. The RSI at 63.75 is Neutral, neither overbought nor oversold. The STOCH value of 46.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3004.

Shinyei Kaisha Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5331	78 Outperform	¥195.25B	15.80	8.27%	2.68%	-2.45%	7.31%
3004	75 Outperform	¥11.04B	6.09	―	3.84%	5.86%	44.77%
3106	75 Outperform	¥157.08B	13.38	―	2.66%	-1.63%	67.13%
4206	73 Outperform	¥261.72B	13.86	―	3.90%	2.65%	7.16%
5355	72 Outperform	¥4.44B	9.99	―	2.79%	3.32%	18.84%
3512	67 Neutral	¥15.76B	31.07	―	2.41%	-4.23%	-5.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%