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

• Market Cap: ¥10.39B
• Dividend Yield: 4.23%
• Average Volume (3M): 29.20K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.41
• Revenue Growth: 38.05%
• EPS Growth: 138.22%
• Country: JP
• Employees: 144
• Sector: Industrials
• Sector Strength: 92
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 7.73
• Shares Outstanding: 14,103,000
• 10 Day Avg. Volume: 23,000
• 30 Day Avg. Volume: 29,200
• PEG Ratio: -0.32
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 305.32
• 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: ¥801.00
• Price Target Upside: 6.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 70 Neutral
• Price Target: ¥829.00 ▲(10.24%Upside)

Shinwa Co.,Ltd. benefits from a strong valuation profile with an attractive P/E ratio and dividend yield, making it appealing for value-oriented investors. While financial performance shows robust revenue growth, concerns about declining profitability and cash flow challenges exist. Technical analysis presents mixed signals, indicating moderate bullish momentum tempered by potential short-term risks.

Shinwa Co.,Ltd. Business Overview & Revenue Model

Company Description

Shinwa Co., Ltd. (3447) is a Japanese company primarily engaged in the design, manufacture, and sale of scaffolding and temporary construction equipment. The company operates in the construction sector, providing high-quality products that ensure safety and efficiency in construction sites. Shinwa Co., Ltd. is known for its innovative solutions and commitment to enhancing construction site safety standards.

How the Company Makes Money

Shinwa Co., Ltd. generates revenue through the sale of scaffolding and temporary construction equipment. The company's key revenue streams include direct sales to construction companies and leasing of equipment for short-term projects. Shinwa Co., Ltd. also benefits from long-term partnerships with major construction firms, which contribute to steady demand for its products. The company may also engage in maintenance and repair services for its equipment, providing an additional revenue stream. Additionally, its focus on innovation and adherence to safety standards helps maintain its competitive edge and customer loyalty, further securing its income.

Shinwa Co.,Ltd. Financial Statement Overview

Summary

Solid revenue growth and operational efficiency are positives, but declining net profit margins, increasing debt levels, and cash flow challenges pose notable risks.

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	15.84B	17.50B	12.68B	14.76B	16.06B	13.89B
Gross Profit	4.09B	4.42B	2.80B	3.50B	4.12B	3.62B
EBITDA	2.01B	2.22B	1.29B	2.10B	2.68B	2.51B
Net Income	837.57M	975.04M	409.67M	1.01B	1.45B	1.23B
Balance Sheet
Total Assets	28.77B	29.97B	20.68B	21.29B	22.52B	22.24B
Cash, Cash Equivalents and Short-Term Investments	2.42B	2.91B	1.84B	2.06B	3.46B	4.74B
Total Debt	9.49B	10.49B	3.45B	4.24B	4.86B	5.30B
Total Liabilities	13.04B	14.12B	5.36B	5.74B	7.36B	7.79B
Stockholders Equity	15.72B	15.84B	15.31B	15.55B	15.13B	14.38B
Cash Flow
Free Cash Flow	-108.91M	-856.68M	1.35B	32.74M	23.45M	2.66B
Operating Cash Flow	596.85M	774.58M	1.97B	686.10M	835.91M	2.89B
Investing Cash Flow	-2.03B	-4.32B	-626.12M	-659.78M	-817.86M	-181.33M
Financing Cash Flow	1.62B	4.61B	-1.57B	-1.42B	-1.31B	-1.10B

Shinwa Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 752.00
• 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 752 is above the 20-day moving average (MA) of 748.75, above the 50-day MA of 747.12, and above the 200-day MA of 739.43, indicating a bullish trend. The MACD of 2.38 indicates Negative momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 78.28 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
5644	82 Outperform	¥10.98B	5.32		3.80%	-2.37%	-5.51%
6998	78 Outperform	¥6.25B	8.99		3.99%	8.09%	28.10%
3435	74 Outperform	¥10.21B	9.22		2.93%	0.51%	-35.51%
3447	70 Neutral	¥10.39B	10.79		4.23%	38.05%	138.22%
1787	68 Neutral	¥13.01B	12.57		5.21%	3.62%	-12.03%
6497	66 Neutral	¥7.54B	22.59		2.65%	9.42%	-60.45%
Sector *	65 Neutral	$10.89B	15.56	5.22%	1.87%	3.09%	-26.84%

Shinwa Co.,Ltd. Corporate Events

Shinwa Co., Ltd. Reports Robust Financial Growth and Announces Share Repurchase

Shinwa Co., Ltd. reported significant growth in its financial performance for the fiscal year ended March 31, 2025, with a 38.1% increase in revenue and a 136.7% rise in profit compared to the previous year. The company also announced a share repurchase plan, which is expected to impact future earnings per share, indicating a positive outlook for stakeholders.

Shinwa Co., Ltd. Announces Share Repurchase Plan

Shinwa Co., Ltd. has announced a resolution to repurchase up to 430,000 shares of its common stock, representing 3.09% of its total outstanding shares, for a total purchase price of up to 300 million yen. This move is intended to allow the company to flexibly manage its capital policy and enhance shareholder value, with purchases scheduled to occur on the Tokyo Stock Exchange between May 15, 2025, and September 30, 2025.