Shinto Paint Co., Ltd. (4615) AI Stock Analysis

• Market Cap: ¥4.32B
• Dividend Yield: N/A
• Average Volume (3M): 46.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• Revenue Growth: 8.66%
• EPS Growth: -239.07%
• Country: JP
• Employees: 423
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.64
• Shares Outstanding: 34,060,000
• 10 Day Avg. Volume: 27,400
• 30 Day Avg. Volume: 46,160
• PEG Ratio: 0.77
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -7.21
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: ¥127.00 ▲(0.79% Upside)

The overall stock score is primarily impacted by significant financial challenges, including declining profitability and negative cash flow. Technical indicators suggest neutral to bearish momentum, and valuation metrics indicate potential overvaluation concerns due to negative earnings.

Positive Factors

Revenue Growth

The company has demonstrated a positive revenue growth trend, indicating its ability to expand market reach and product adoption, which is crucial for long-term sustainability in the competitive chemicals industry.

Market Diversification

Shinto Paint's diverse market presence across automotive, construction, and industrial sectors reduces dependency on a single market, providing resilience against sector-specific downturns.

Innovation and R&D

Continuous investment in R&D enhances Shinto Paint's competitive edge, enabling the development of advanced coatings that meet evolving client needs, supporting long-term growth and profitability.

Negative Factors

Declining Profitability

Persistent negative net income and declining gross margins indicate operational inefficiencies and challenges in maintaining profitability, which could hinder long-term financial health.

Negative Cash Flow

Negative cash flow highlights inefficiencies in converting income to cash, posing risks to liquidity and limiting the company's ability to invest in growth opportunities or weather economic downturns.

Moderate Leverage

The company's moderate leverage, combined with recurring net losses, could strain financial stability, increasing vulnerability to interest rate changes and limiting strategic financial flexibility.

Shinto Paint Co., Ltd. Business Overview & Revenue Model

Company Description

Shinto Paint Company, Limited manufactures, processes, and sells paints, pigments, synthetic fats/oils, fats/oils, and chemicals in Japan. It also provides electronic equipment, optical communication equipment, magnetic equipment, parts, components, and their materials; painting facilities, related machinery equipment, tools, devices, and materials; and civil engineering and construction materials, as well as housing materials. In addition, the company designs, implements, and supervises painting and other construction works, as well as offers related technical supervision services. Further, it is involved in the provision of contract installation works for painting facilities and related machinery equipment, tools, and devices, as well as designs and supervises related installation works. It also imports and exports its products. The company was founded in 1901 and is headquartered in Amagasaki, Japan.

How the Company Makes Money

Shinto Paint Co., Ltd. generates revenue primarily through the manufacture and sale of its paint and coating products. The company serves multiple sectors, including automotive, construction, and industrial markets, providing specialized coatings that meet specific client requirements. Revenue streams are driven by both domestic sales within Japan and international exports, with the company maintaining strategic partnerships and collaborations to enhance its market reach. The company also invests in research and development to innovate and improve its product offerings, contributing to its competitive edge and profitability.

Shinto Paint Co., Ltd. Financial Statement Overview

Summary

The company faces significant financial challenges. The income statement shows declining profitability with negative net income, the balance sheet indicates moderate leverage, and the cash flow statement highlights negative free cash flow, raising concerns about sustainability.

Income Statement

The income statement shows a decline in financial performance over the past few years. Gross profit margin has been decreasing, and net income has been negative for the past three years, reflecting challenges in profitability. The revenue growth rate is modest, and both EBIT and EBITDA margins have been under pressure, indicating operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio indicates a moderate level of leverage, which may pose risks given the recurring net losses. However, the company maintains a reasonable level of equity ratio, suggesting some degree of financial stability and asset financing through equity.

Cash Flow

The cash flow statement highlights significant challenges, with negative free cash flow and declining operating cash flow in the most recent periods. The free cash flow to net income ratio is unfavorable, and the operating cash flow to net income ratio suggests inefficiencies in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.92B	20.76B	18.95B	19.04B	19.14B	20.19B
Gross Profit	3.54B	3.53B	2.94B	2.31B	3.36B	3.80B
EBITDA	603.50M	865.00M	321.00M	-1.01B	-336.00M	1.55B
Net Income	-240.00M	-60.00M	-497.00M	-1.81B	-1.82B	679.00M
Balance Sheet
Total Assets	32.20B	32.01B	33.04B	33.86B	32.64B	33.72B
Cash, Cash Equivalents and Short-Term Investments	2.81B	2.72B	3.46B	4.47B	2.72B	3.30B
Total Debt	5.13B	5.03B	5.75B	6.21B	3.57B	3.19B
Total Liabilities	17.64B	17.39B	18.84B	19.47B	16.47B	15.63B
Stockholders Equity	13.55B	13.60B	13.27B	13.50B	15.30B	17.26B
Cash Flow
Free Cash Flow	0.00	-563.00M	-343.00M	-1.03B	-811.00M	36.00M
Operating Cash Flow	0.00	-30.00M	53.00M	-536.00M	150.00M	698.00M
Investing Cash Flow	0.00	-362.00M	-321.00M	-113.00M	-979.00M	1.64B
Financing Cash Flow	0.00	-367.00M	-761.00M	2.39B	196.00M	-2.17B

Shinto Paint Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 126.00
• 50DMA: Negative
• 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:4615, the sentiment is Neutral. The current price of 126 is below the 20-day moving average (MA) of 126.45, below the 50-day MA of 127.66, and below the 200-day MA of 130.82, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:4615.

Shinto Paint Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4619	75 Outperform	¥48.01B	8.86	―	5.46%	-3.21%	27.18%
4611	74 Outperform	¥35.78B	4.16	―	3.98%	14.83%	51.42%
4623	72 Outperform	¥6.55B	9.21	―	3.49%	-8.27%	-3.23%
4616	71 Outperform	¥2.53B	21.07	―	1.24%	-2.27%	-12.76%
4624	66 Neutral	¥5.25B	11.57	―	1.43%	2.67%	37.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4615	44 Neutral	¥4.32B	-16.66	―	―	8.66%	-239.07%