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

• Market Cap: ¥5.37B
• Dividend Yield: 2.49%
• Average Volume (3M): 4.44K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.44
• Revenue Growth: 9.77%
• EPS Growth: -7.98%
• Country: JP
• Employees: 76
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 41.98
• Shares Outstanding: 3,579,105
• 10 Day Avg. Volume: 2,850
• 30 Day Avg. Volume: 4,440
• PEG Ratio: 1.53
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -31.24
• 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: ¥1,853.00 ▲(19.16% Upside)

Shoei Yakuhin Co., Ltd. demonstrates strong financial performance with consistent revenue growth and a robust balance sheet. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. Technical indicators present a mixed outlook, with some short-term weakness but potential for positive momentum.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong market demand and operational efficiency, supporting long-term business expansion and stability.

Balance Sheet Strength

A strong balance sheet with prudent financial leverage enhances financial stability and provides a solid foundation for future growth.

Market Position

By prioritizing innovation and quality, the company secures a competitive advantage, fostering long-term market leadership and customer loyalty.

Negative Factors

Profitability Challenges

Declining profitability despite increased sales suggests issues in cost management and operational efficiency, potentially impacting long-term financial health.

Cash Flow Management

Poor cash flow management can hinder the company's ability to invest in growth opportunities and meet financial obligations, affecting sustainability.

Net Profit Margin

A lower net profit margin indicates inefficiencies in expense management, which could limit profitability and shareholder returns over time.

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

Company Description

Shoei Yakuhin Co.,Ltd. engages in the trading of chemicals, daily necessities, and civil engineering and construction materials in Japan, China, Thailand, Singapore, and internationally. The company provides various oleo chemicals, surfactants, solvents/mineral oils, synthetic resins, anti-termite related products, petrochemicals, and other chemicals; and daily necessities, including household and commercial detergents, cosmetics, soaps, shampoos, cleaning agents, insect repellents, sterilization products, desiccants, air fresheners/deodorants, wax, polishing agents, functional insoles, various household repair agents, and other molded products. It also offers civil engineering and construction materials, such as ground improvement materials, building civil structure repair and reinforcement materials, environmental improvement drugs, and other civil engineering and construction materials. Shoei Yakuhin Co.,Ltd. was founded in 1937 and is headquartered in Osaka, Japan.

How the Company Makes Money

Shoei Yakuhin generates revenue through multiple streams, including the sale of prescription medications and over-the-counter products. The company's revenue model is primarily based on direct sales to healthcare providers, hospitals, and pharmacies. Additionally, revenue is bolstered by partnerships with other pharmaceutical companies for co-development and distribution agreements, which allow Shoei Yakuhin to expand its market reach and product offerings. The company's focus on research and development also enables it to introduce new drugs to the market, thus creating additional revenue opportunities through patent-protected products. Furthermore, the company's involvement in generics provides a steady income stream due to the growing demand for cost-effective medication solutions.

Shoei Yakuhin Co., Ltd. Financial Statement Overview

Summary

Shoei Yakuhin Co., Ltd. presents a strong financial position with consistent revenue growth and robust balance sheet indicators. While profitability metrics are solid, enhanced cash flow management could further strengthen the company's financial health.

Income Statement

Shoei Yakuhin Co., Ltd. has demonstrated a consistent revenue growth trajectory, with a remarkable increase from the previous year, indicating strong market demand and operational efficiency. The gross profit margin stands solid, reflecting effective cost management strategies. However, the net profit margin, although positive, suggests room for improvement in controlling operational expenses and optimizing net income. The EBIT and EBITDA margins show healthy operational performance, supporting a favorable outlook.

Balance Sheet

The company's balance sheet is robust, with a favorable debt-to-equity ratio indicating prudent financial leverage and a strong equity base. The return on equity (ROE) is impressive, showcasing efficient use of shareholders' equity to generate profits. The equity ratio further emphasizes the company's stability and conservative financial strategy, enhancing investor confidence.

Cash Flow

The cash flow statement reflects a challenging environment with negative free cash flow growth, indicating potential cash management issues. Despite this, the operating cash flow to net income ratio remains relatively stable, suggesting operational cash generation aligns with reported net income. The free cash flow to net income ratio further highlights the need for improved cash flow management to support sustainable growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.78B	25.01B	22.60B	24.53B	21.15B	17.03B
Gross Profit	2.13B	2.10B	1.89B	1.89B	1.65B	1.47B
EBITDA	709.54M	770.49M	665.73M	690.13M	870.71M	344.63M
Net Income	509.27M	527.41M	491.91M	484.56M	578.64M	237.77M
Balance Sheet
Total Assets	16.86B	17.10B	16.82B	14.80B	14.48B	14.61B
Cash, Cash Equivalents and Short-Term Investments	1.11B	1.91B	2.19B	1.53B	1.15B	1.25B
Total Debt	0.00	600.00M	600.00M	650.00M	706.35M	699.54M
Total Liabilities	7.94B	8.16B	8.68B	7.43B	7.53B	6.96B
Stockholders Equity	8.91B	8.94B	8.14B	7.37B	6.95B	7.64B
Cash Flow
Free Cash Flow	0.00	-179.41M	817.71M	634.51M	-399.94M	322.94M
Operating Cash Flow	0.00	-171.65M	818.26M	644.57M	-398.37M	324.82M
Investing Cash Flow	0.00	-21.01M	-18.43M	-30.11M	382.73M	39.01M
Financing Cash Flow	0.00	-129.27M	-172.14M	-269.32M	-62.48M	-77.02M

Shoei Yakuhin Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1555.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 1555 is below the 20-day moving average (MA) of 1555.55, above the 50-day MA of 1547.66, and below the 200-day MA of 1627.29, indicating a neutral trend. The MACD of -1.31 indicates Positive momentum. The RSI at 49.80 is Neutral, neither overbought nor oversold. The STOCH value of 61.00 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
3537	73 Outperform	¥5.37B	10.90	―	2.49%	9.77%	-7.98%
7940	72 Outperform	¥12.52B	23.75	―	1.19%	4.66%	4.90%
5381	66 Neutral	¥6.55B	9.00	―	2.29%	5.37%	63.30%
5695	63 Neutral	¥6.83B	19.79	―	6.58%	4.80%	97.52%
4406	62 Neutral	¥8.69B	18.56	―	1.35%	-2.76%	-25.24%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4100	46 Neutral	¥7.60B	-2.73	―	―	12.11%	46.97%