Shinwa Co.,Ltd. (3447) AI Stock Analysis

• Market Cap: ¥14.77B
• Dividend Yield: 3.58%
• Average Volume (3M): 60.91K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.51
• Revenue Growth: 29.20%
• EPS Growth: 122.98%
• Country: JP
• Employees: 144
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 58.76
• Shares Outstanding: 14,103,000
• 10 Day Avg. Volume: 37,520
• 30 Day Avg. Volume: 60,910
• PEG Ratio: 0.08
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.59
• P/FCF Ratio: -12.08
• 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: 73 Outperform
• Price Target: ¥1,200.00 ▲(30.29% Upside)
• Action: Upgraded Date: 11/26/25
• Date: Action: Upgraded 11/26/25

Shinwa Co.,Ltd. receives a strong overall score driven by robust technical analysis and attractive valuation metrics. While financial performance shows solid revenue growth, concerns about declining net profitability and increasing debt levels are notable risks. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Revenue Growth

Sustained top-line growth (26.6% reported) indicates durable demand and successful market penetration in its metal fabrication niche. Over a multi-month horizon, strong revenue expansion supports capacity utilization, scale economics and reinvestment into product or process improvements, underpinning longer-term earnings potential even if margins fluctuate.

Operational Efficiency / Margins

Healthy gross and operating margins (EBIT/EBITDA) point to sustained operational efficiency and cost control in manufacturing processes. This structural margin strength helps absorb commodity or input cost swings, supports consistent operating cash generation, and preserves the company's ability to invest in productivity-enhancing capital expenditures over the medium term.

Balanced Capital Structure

A moderate debt-to-equity profile with a stable equity ratio and reasonable return on equity suggests a balanced capital structure that supports growth without excessive financial strain. Over a 2-6 month horizon this provides financing flexibility for working capital and targeted investments while still creating shareholder value, assuming leverage is managed.

Negative Factors

Declining Net Profitability

A documented decline in net profitability is a structural concern that erodes retained earnings and reduces the cash available for reinvestment, dividends, or debt reduction. Persisting margin compression over months may reflect pricing pressure, rising overheads or inefficiencies that impair long-term return on invested capital and shareholder returns.

Increasing Debt Levels

An increase in total debt raises financial leverage and interest obligations, constraining strategic flexibility. If debt growth continues, it can reduce headroom for capex or acquisitions, heighten refinancing risk, and amplify earnings volatility during downturns, making the capital structure more fragile across a multi-month horizon.

Weak Free Cash Flow Trends

Declining free cash flow and negative FCF growth signal persistent liquidity strain that threatens the company’s ability to fund operations, service debt, or maintain distributions without raising external capital. Over 2-6 months, weak FCF can force refinancing, deferment of strategic projects, or reliance on higher-cost funding, impairing operational resilience.

Shinwa Co.,Ltd. Business Overview & Revenue Model

Company Description

Shinwa Co., Ltd. provides scaffolding and logistic equipment in Japan. It offers wedge binding type scaffolding, next generation scaffolding, and other scaffolding equipment; hanging and mesh pallets; pallets for pipes, system scaffolding, and preceding handrails; and optional parts, such as pre-installed handrails. The company was founded in 1977 and is headquartered in Kaizu, Japan.

How the Company Makes Money

Shinwa Co., Ltd. generates revenue through the sale of its precision measuring tools and instruments to various industries, including manufacturing, construction, and engineering. The company's revenue model is primarily based on direct sales of its products through both retail and wholesale channels. Key revenue streams include the sales of traditional measuring tools, digital measurement devices, and specialized instruments tailored for specific industrial applications. Additionally, Shinwa may engage in partnerships with distributors and retailers to expand its market reach, which contributes to its earnings. The company's focus on innovation and quality also allows it to maintain a competitive edge, attracting clients looking for reliable measurement solutions.

Shinwa Co.,Ltd. Financial Statement Overview

Summary

Shinwa Co.,Ltd. shows robust revenue growth and operational effectiveness. However, the decline in net profitability and increasing debt levels pose potential risks. Cash flow concerns also highlight the need for improved liquidity management to sustain long-term growth.

Income Statement

Shinwa Co.,Ltd. demonstrates a solid gross profit margin with a recent increase in total revenue, indicating strong sales performance. However, net profit margins have seen a decline over the years, which could be a concern. EBIT and EBITDA margins remain healthy, showing consistent operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a balanced capital structure. Despite a stable equity ratio, there's a noticeable increase in total debt, which might affect financial leverage. Return on equity is reasonable, supporting shareholder value creation.

Cash Flow

Shinwa Co.,Ltd. faces challenges in cash flow, with declining free cash flow and a negative growth rate in recent years. The operating cash flow to net income ratio suggests some stability, but the free cash flow to net income ratio highlights potential liquidity issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	17.99B	17.50B	12.68B	14.76B	16.06B	13.89B
Gross Profit	4.67B	4.42B	2.80B	3.50B	4.12B	3.62B
EBITDA	2.53B	2.22B	1.29B	2.10B	2.68B	2.51B
Net Income	1.15B	975.04M	409.67M	1.01B	1.45B	1.23B
Balance Sheet
Total Assets	31.95B	29.97B	20.68B	21.29B	22.52B	22.24B
Cash, Cash Equivalents and Short-Term Investments	3.94B	2.91B	1.84B	2.06B	3.46B	4.74B
Total Debt	12.37B	11.49B	3.45B	4.24B	5.22B	5.68B
Total Liabilities	16.17B	14.12B	5.36B	5.74B	7.36B	7.79B
Stockholders Equity	15.77B	15.84B	15.31B	15.55B	15.13B	14.38B
Cash Flow
Free Cash Flow	-324.48M	-856.68M	1.35B	32.74M	23.45M	2.66B
Operating Cash Flow	155.59M	848.92M	1.97B	686.10M	835.91M	2.89B
Investing Cash Flow	-1.80B	-4.32B	-626.12M	-659.78M	-817.86M	-181.33M
Financing Cash Flow	1.65B	4.54B	-1.57B	-1.42B	-1.31B	-1.10B

Shinwa Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 921.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3447, the sentiment is Positive. The current price of 921 is below the 20-day moving average (MA) of 1028.25, below the 50-day MA of 972.80, and above the 200-day MA of 858.07, indicating a bullish trend. The MACD of 26.47 indicates Negative momentum. The RSI at 68.69 is Neutral, neither overbought nor oversold. The STOCH value of 69.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3447.

Shinwa Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6497	80 Outperform	¥9.39B	9.73	―	2.92%	5.71%	169.04%
3447	73 Outperform	¥14.77B	8.22	―	3.58%	29.20%	122.98%
5644	72 Outperform	¥16.90B	7.44	―	2.87%	2.38%	-5.80%
3435	70 Neutral	¥11.56B	11.70	―	2.89%	1.82%	-24.39%
5994	69 Neutral	¥7.74B	4.62	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥23.85B	10.25	―	4.33%	5.12%	―

Shinwa Co.,Ltd. Corporate Events

Shinwa Lifts Nine-Month Profit Nearly Twofold, Confirms Higher Full-Year Payout

Shinwa Co., Ltd. reported strong consolidated results for the nine months ended December 31, 2025, with revenue up 19.9% to ¥15.4 billion and operating profit surging 65.6%, while profit attributable to owners of the parent nearly doubled to ¥1.68 billion. The company’s financial position remained solid, with equity ratio slightly above 53%, and it maintained its interim dividend of ¥16 per share while forecasting full-year revenue of ¥20 billion and higher earnings, supporting a planned increase in the year-end dividend to ¥18 per share.

The group’s growth was also underpinned by the inclusion of KAIZU KENSETSU CO., LTD. in the consolidated accounts, signaling ongoing portfolio expansion and potential operational synergies. Shareholder returns were reinforced by both rising earnings per share—boosted by higher profits and a lower average share count due in part to increased treasury shares—and a stable, slightly upward-trending dividend trajectory, indicating management’s confidence in continued earnings momentum.

The most recent analyst rating on (JP:3447) stock is a Buy with a Yen1200.00 price target. To see the full list of analyst forecasts on Shinwa Co.,Ltd. stock, see the JP:3447 Stock Forecast page.

Shinwa Co., Ltd. Reports Strong Financial Growth and Positive Forecasts

Shinwa Co., Ltd. reported a significant increase in its consolidated financial results for the six months ended September 30, 2025, with revenue and profits showing substantial growth compared to the previous year. The company has revised its financial and dividend forecasts upward, indicating a positive outlook for the fiscal year ending March 31, 2026, which may have implications for its market positioning and stakeholder confidence.

The most recent analyst rating on (JP:3447) stock is a Buy with a Yen1044.00 price target. To see the full list of analyst forecasts on Shinwa Co.,Ltd. stock, see the JP:3447 Stock Forecast page.