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

• Market Cap: ¥14.18B
• Dividend Yield: 3.58%
• Average Volume (3M): 60.91K
• Price to Earnings (P/E): 3.9
• 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: ¥1,201.00 ▲(30.40% 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 revenue growth (~26.6%) indicates durable demand and expanding market penetration in the metal fabrication segment. Over a 2-6 month horizon, revenue momentum supports capacity utilization, reinvestment potential and scale benefits that can underwrite longer-term profitability recovery.

Operational Margins

Healthy gross and EBIT/EBITDA margins reflect structural operational efficiency and cost control in manufacturing. These margins give the company enduring ability to absorb raw material swings, invest in productivity, and sustain operating cash generation even if net margins face pressure.

Balanced Capital Structure

A moderate debt-to-equity and stable equity ratio indicate a balanced capital structure that preserves financial flexibility. Reasonable ROE shows shareholder value creation capacity, supporting access to funding and resilience to cyclical industry pressures over intermediate horizons.

Negative Factors

Declining Net Profit Margins

Falling net margins reduce retained earnings and curtail the company's ability to fund capex, service debt and pay dividends. If structural (cost inflation, pricing pressure, or overhead creep), persistent margin erosion undermines return on capital and weakens long-term financial resilience.

Rising Total Debt

An increase in total debt raises leverage and interest burden, narrowing financial flexibility. With higher debt levels, the company faces greater refinancing and covenant risk, reducing capacity to absorb shocks and limiting strategic investments if cash generation weakens.

Weak Free Cash Flow

Declining free cash flow constrains the firm's ability to invest, reduce debt, or return capital to shareholders. Structural FCF weakness makes funding growth or servicing rising debt harder, increasing the chance of liquidity stress during downturns and limiting strategic optionality.

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

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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	3.60B	4.41B	5.22B	5.59B
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	0.00	-856.68M	1.35B	32.74M	23.45M	2.66B
Operating Cash Flow	0.00	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: Neutral
• Last Price: 921.00
• 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:3447, the sentiment is Neutral. The current price of 921 is below the 20-day moving average (MA) of 1049.85, below the 50-day MA of 1010.24, and above the 200-day MA of 880.23, indicating a neutral trend. The MACD of 9.25 indicates Positive momentum. The RSI at 49.42 is Neutral, neither overbought nor oversold. The STOCH value of 71.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥10.35B	8.32	―	2.92%	5.71%	169.04%
3447	73 Outperform	¥14.18B	3.92	―	3.58%	29.20%	122.98%
5644	72 Outperform	¥15.72B	4.33	―	2.87%	2.38%	-5.80%
3435	70 Neutral	¥11.02B	10.19	―	2.89%	1.82%	-24.39%
5994	69 Neutral	¥6.70B	-102.51	―	1.06%	6.41%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5852	54 Neutral	¥21.07B	3.53	―	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.