Shinyei Kaisha (3004) AI Stock Analysis

• Market Cap: ¥9.53B
• Dividend Yield: 3.84%
• Average Volume (3M): 18.98K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.40
• Revenue Growth: 5.86%
• EPS Growth: 44.77%
• Country: JP
• Employees: 467
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 83.00
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ¥2,561.00 ▲(9.26% Upside)

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

Cash Flow Improvements

Improved cash flow management enhances liquidity and provides the company with more flexibility to invest in growth opportunities and manage debt.

Profitability Enhancement

Improved profitability indicates efficient operations and a stronger financial foundation, supporting sustainable growth and competitive positioning.

Equity Strength

A stronger equity position reduces financial risk and enhances the company's ability to withstand economic fluctuations and invest in strategic initiatives.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially limiting the company's ability to invest in growth and manage economic downturns effectively.

Flat Revenue Growth

Stagnant revenue growth may hinder the company's ability to scale operations and compete effectively, impacting long-term market position.

Cash Flow Volatility

Volatile cash flow can affect the company's ability to consistently fund operations and growth initiatives, posing a risk to financial stability.

Shinyei Kaisha Business Overview & Revenue Model

Company Description

Shinyei Kaisha (3004) is a Japanese company primarily engaged in the manufacturing and sales of environmental measurement equipment, including air quality sensors, dust monitors, and other related instruments. The company operates in various sectors such as environmental monitoring, industrial safety, and public health, providing essential tools for measuring and analyzing environmental conditions. With a commitment to innovation and quality, Shinyei Kaisha also offers solutions for research and development in environmental science and technology.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: 2344.00
• 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 2344 is above the 20-day moving average (MA) of 2337.35, above the 50-day MA of 2274.94, and above the 200-day MA of 1958.86, indicating a bullish trend. The MACD of 20.48 indicates Positive momentum. The RSI at 54.86 is Neutral, neither overbought nor oversold. The STOCH value of 37.90 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
3004	75 Outperform	¥9.53B	4.92	―	3.84%	5.86%	44.77%
7795	73 Outperform	¥8.82B	7.54	―	3.79%	6.83%	41.94%
3512	73 Outperform	¥11.91B	27.93	―	2.41%	-4.23%	-5.96%
7670	71 Outperform	¥10.82B	6.17	―	4.15%	-5.07%	13.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
7490	62 Neutral	¥7.82B	24.73	―	2.23%	3.47%	1062.58%
6838	52 Neutral	¥4.42B	16.88	―	0.72%	―	―