Shoei Yakuhin Co., Ltd. (3537) AI Stock Analysis

• Market Cap: ¥5.64B
• Dividend Yield: 2.39%
• Average Volume (3M): 2.02K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.43
• Revenue Growth: 10.70%
• EPS Growth: 6.95%
• Country: JP
• Employees: 76
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Chemicals - Specialty
• EPS (TTM): 26.32
• Shares Outstanding: 3,579,105
• 10 Day Avg. Volume: 2,150
• 30 Day Avg. Volume: 2,016
• PEG Ratio: 1.13
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥2,017.00
• Price Target Upside: 23.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 67 Neutral
• Price Target: ¥1,753.00 ▲(7.55%Upside)

Shoei Yakuhin Co., Ltd. receives a moderate score due to strong financial performance and attractive valuation, offset by weak technical indicators. The company's consistent revenue growth and robust balance sheet are major strengths, while technical bearish signals suggest caution. The absence of significant corporate events and earnings call data did not affect the score.

Shoei Yakuhin Co., Ltd. Business Overview & Revenue Model

Company Description

Shoei Yakuhin Co., Ltd. (3537) is a Japanese company primarily engaged in the manufacture and sale of chemical products. The company operates in several sectors, including pharmaceuticals, food additives, and industrial chemicals. Shoei Yakuhin is known for its commitment to quality and innovation, catering to a diverse clientele that relies on its chemical expertise for various applications.

How the Company Makes Money

Shoei Yakuhin Co., Ltd. generates revenue through the production and sale of its chemical products, which are used across different industries. The company's key revenue streams include pharmaceuticals, where it supplies active pharmaceutical ingredients (APIs) and intermediates; food additives, providing essential chemical components for food preservation and enhancement; and industrial chemicals, serving various manufacturing needs. Partnerships with pharmaceutical and food companies, as well as contracts with industrial manufacturers, play a significant role in driving its earnings. The company focuses on maintaining long-term relationships with its clients, ensuring steady demand for its innovative and high-quality chemical solutions.

Shoei Yakuhin Co., Ltd. Financial Statement Overview

Summary

Shoei Yakuhin Co., Ltd. shows strong profitability and financial stability, with efficient cost management and low leverage. However, inconsistent revenue growth and cash flow challenges pose risks. The company exhibits potential for sustainable operations but needs focus on improving liquidity and cash flow management to support future growth.

Income Statement

Shoei Yakuhin Co., Ltd. demonstrates strong profitability with a consistent gross profit margin over the TTM and previous years. The TTM gross profit margin is approximately 8.29%, indicating efficient cost management. Net profit margin for TTM is 2.03%, reflecting a slight improvement over the previous fiscal year. Revenue has been relatively stable, with a slight decrease in the latest TTM period compared to the previous full year. EBIT and EBITDA margins are stable, indicating sound operational efficiency. However, revenue growth has been inconsistent, which poses a potential risk.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.006 in the TTM period, suggesting low financial leverage and reduced financial risk. The equity ratio is high at 49.26%, highlighting a solid equity base. Return on equity (ROE) is 5.59% in the TTM, showing moderate returns on shareholder investment. Overall, the company exhibits financial stability with ample equity cushioning against liabilities.

Cash Flow

Cash flow metrics indicate some challenges, as the operating cash flow to net income ratio is unavailable due to zero operating cash flow in the TTM period. Historically, free cash flow has fluctuated, with a significant decline in the current TTM, potentially impacting future investment and growth opportunities. The absence of positive free cash flow in the TTM raises caution regarding liquidity management.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	24.37B	22.60B	24.53B	21.15B	17.03B	17.73B
Gross Profit	2.02B	1.89B	1.89B	1.65B	1.47B	1.51B
EBITDA	654.50M	665.73M	690.13M	870.71M	344.63M	395.48M
Net Income	495.37M	491.91M	484.56M	578.64M	237.77M	255.94M
Balance Sheet
Total Assets	16.82B	16.82B	14.80B	14.48B	14.61B	15.00B
Cash, Cash Equivalents and Short-Term Investments	2.19B	2.19B	1.53B	1.15B	1.25B	986.62M
Total Debt	600.00M	600.00M	650.00M	706.35M	699.54M	713.30M
Total Liabilities	8.68B	8.68B	7.43B	7.53B	6.96B	6.86B
Stockholders Equity	8.14B	8.14B	7.37B	6.95B	7.64B	8.14B
Cash Flow
Free Cash Flow	0.00	817.71M	634.51M	-399.94M	322.94M	-502.73M
Operating Cash Flow	0.00	818.26M	644.57M	-398.37M	324.82M	-472.18M
Investing Cash Flow	0.00	-18.43M	-30.11M	382.73M	39.01M	116.35M
Financing Cash Flow	0.00	-172.14M	-269.32M	-62.48M	-77.02M	-547.29M

Shoei Yakuhin Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1630.00
• 50DMA: Negative
• 100DMA: Negative
• 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:3537, the sentiment is Neutral. The current price of 1630 is below the 20-day moving average (MA) of 1652.80, below the 50-day MA of 1680.74, and above the 200-day MA of 1541.96, indicating a neutral trend. The MACD of -19.41 indicates Positive momentum. The RSI at 39.65 is Neutral, neither overbought nor oversold. The STOCH value of 69.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:3537.

Shoei Yakuhin Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7940	75 Outperform	¥5.85B	9.68		5.03%	8.52%	14.08%
5381	71 Outperform	¥7.35B	8.06		1.94%	19.43%	―
5695	68 Neutral	¥5.97B	18.77		4.87%	6.87%	13.34%
3537	67 Neutral	¥5.64B	10.54		2.39%	10.70%	6.95%
Sector *	62 Neutral	$10.21B	10.03	-0.16%	2.84%	2.22%	-32.59%
4406	60 Neutral	¥7.61B	15.07		1.47%	-0.49%	137.27%
4100	55 Neutral	¥7.98B	―		―	20.71%	0.54%