Shinyei Kaisha (3004) AI Stock Analysis

• Market Cap: ¥10.74B
• Dividend Yield: 3.84%
• Average Volume (3M): 18.98K
• Price to Earnings (P/E): 5.9
• 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: ¥2,983.00 ▲(22.86% 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

ROE near 15% signals that management is generating stronger returns on shareholder capital, a durable sign of operational efficiency. Sustained ROE supports reinvestment, dividends and equity strength, helping the company maintain financial flexibility over the next several quarters.

Recovering operating cash flow and stronger FCF

A shift to positive operating cash flow and rising free cash flow demonstrates improving cash conversion of earnings. Durable cash generation enhances the company’s ability to service debt, fund capex or return capital to shareholders without relying on new financing.

Diversified business model and distribution network

Multiple business lines and domestic plus overseas sales channels provide diversification across cycles and geographies. This structural breadth reduces reliance on any single market and supports more stable revenues and sourcing flexibility over a multi-quarter horizon.

Negative Factors

High leverage remains

A D/E of ~1.52 indicates material debt relative to equity, which raises refinancing and interest-cover risk if cash flows weaken. Elevated leverage can constrain strategic options, increase susceptibility to rate changes, and reduce resilience to cyclical shocks over several quarters.

Relatively flat revenue growth

Flat top-line growth limits the company’s ability to scale earnings organically and forces reliance on margin improvement or non-core actions. Over the medium term this reduces upside from market expansion and can make sustainable profit growth harder to achieve.

Low net profit margin

A net margin near 3.3% offers a slim buffer against cost inflation or demand shocks. Persistently low margins constrain reinvestment capacity and make earnings more sensitive to input costs and pricing pressure, limiting durable competitiveness versus peers.

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: Neutral
• 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 Neutral. The current price of 2428 is below the 20-day moving average (MA) of 2692.55, below the 50-day MA of 2561.76, and above the 200-day MA of 2193.59, indicating a neutral trend. The MACD of 43.75 indicates Positive momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 31.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥188.60B	15.37	8.27%	2.68%	-2.45%	7.31%
3004	75 Outperform	¥10.74B	5.91	―	3.84%	5.86%	44.77%
3106	75 Outperform	¥148.75B	12.36	―	2.66%	-1.63%	67.13%
4206	73 Outperform	¥253.42B	13.54	―	3.90%	2.65%	7.16%
5355	72 Outperform	¥4.39B	9.78	―	2.79%	3.32%	18.84%
3512	67 Neutral	¥16.56B	33.05	―	2.41%	-4.23%	-5.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%