Shinagawa Refractories Co., Ltd. (5351) AI Stock Analysis

• Market Cap: ¥88.44B
• Dividend Yield: 4.77%
• Average Volume (3M): 51.70K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.96
• Revenue Growth: 5.02%
• EPS Growth: -22.36%
• Country: JP
• Employees: 3,373
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 38.54
• Shares Outstanding: 47,146,830
• 10 Day Avg. Volume: 51,830
• 30 Day Avg. Volume: 51,699
• PEG Ratio: -0.23
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 10.64
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥2,062.00 ▲(11.34% Upside)

Shinagawa Refractories Co., Ltd. scores well due to its strong financial performance and attractive valuation. The company's robust cash flow and efficient operations are key strengths, while the low P/E ratio and high dividend yield enhance its appeal. Technical analysis suggests some caution due to potential short-term weakness, but overall, the stock remains a solid investment in the construction industry.

Shinagawa Refractories Co., Ltd. Business Overview & Revenue Model

Company Description

Shinagawa Refractories Co., Ltd. (5351) is a leading manufacturer specializing in refractories and advanced ceramic materials, primarily serving the steel, cement, and non-ferrous metal industries. Established in Japan, the company offers a range of products including refractory bricks, monolithic refractories, and ceramic components that are essential for high-temperature applications in industrial processes. With a focus on innovation and quality, Shinagawa Refractories has developed a strong presence both domestically and internationally.

How the Company Makes Money

Shinagawa Refractories generates revenue primarily through the sale of its refractory products to various industrial sectors, including steelmaking, cement production, and glass manufacturing. The company's key revenue streams include the direct sales of refractory bricks, monolithic refractories, and custom ceramic solutions. Additionally, Shinagawa Refractories benefits from long-term contracts and partnerships with major industrial clients, which provide a stable income source. The company also invests in research and development to enhance product performance and expand its product offerings, enabling it to capture new market opportunities and increase its earnings.

Shinagawa Refractories Co., Ltd. Financial Statement Overview

Summary

Shinagawa Refractories Co., Ltd. exhibits strong financial health with consistent revenue growth and efficient operations. Despite increasing leverage, the company maintains a solid return on equity, supported by robust cash flow generation. Attention to net income fluctuations and debt levels is advisable.

Income Statement

Shinagawa Refractories Co., Ltd. has demonstrated consistent growth in revenue over the years, with a notable increase from 2021 to 2023. The gross profit margin has been stable, reflecting efficient cost management. However, the net profit margin has seen fluctuations, primarily due to varying net income levels. The EBIT and EBITDA margins indicate strong operational efficiency, though a decline in 2024's net income impacts overall profitability.

Balance Sheet

The company's debt-to-equity ratio has increased over the years, indicating higher leverage, but remains manageable within the industry's context. Return on equity shows a positive trend, reflecting effective use of shareholder funds. However, the equity ratio has decreased slightly, suggesting a growing dependence on debt financing.

Cash Flow

Shinagawa Refractories has shown a healthy growth in operating cash flow, which has supported its capital expenditures effectively. The free cash flow has also improved, indicating robust cash generation capabilities. The operating cash flow to net income ratio suggests efficient cash management, though the free cash flow to net income ratio saw some volatility due to fluctuations in net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	148.47B	144.07B	144.18B	124.96B	110.78B	99.97B
Gross Profit	36.92B	35.14B	33.03B	27.41B	24.56B	19.95B
EBITDA	18.45B	20.25B	26.64B	13.78B	12.19B	9.87B
Net Income	8.62B	9.78B	15.28B	8.31B	5.31B	2.11B
Balance Sheet
Total Assets	213.78B	195.21B	155.14B	143.90B	119.71B	110.20B
Cash, Cash Equivalents and Short-Term Investments	26.15B	26.74B	21.38B	18.32B	16.89B	15.72B
Total Debt	75.23B	61.92B	28.08B	34.30B	22.85B	13.68B
Total Liabilities	120.68B	101.38B	68.17B	72.48B	56.47B	39.87B
Stockholders Equity	87.76B	89.00B	83.42B	68.11B	60.17B	60.68B
Cash Flow
Free Cash Flow	0.00	7.26B	6.05B	3.65B	5.96B	5.01B
Operating Cash Flow	0.00	13.10B	11.75B	10.28B	9.49B	9.33B
Investing Cash Flow	0.00	-29.83B	2.58B	-15.95B	-5.17B	-4.01B
Financing Cash Flow	0.00	22.00B	-11.49B	6.84B	-3.35B	-2.41B

Shinagawa Refractories Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1852.00
• 50DMA: Negative
• 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:5351, the sentiment is Negative. The current price of 1852 is below the 20-day moving average (MA) of 1856.85, below the 50-day MA of 1871.26, and above the 200-day MA of 1693.50, indicating a neutral trend. The MACD of -1.80 indicates Positive momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 51.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5351.

Shinagawa Refractories Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5237	―	¥11.61B	12.46	―	3.93%	-2.90%	-24.21%
4026	―	¥13.21B	9.96	―	2.90%	2.25%	-26.12%
5351	―	¥88.44B	9.94	―	4.77%	5.02%	-22.36%
5273	―	¥113.70B	13.23	―	1.91%	8.66%	12.34%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5391	―	¥9.50B	300.64	―	4.71%	4.42%	-98.20%
5337	―	¥17.70B	15.45	―	―	-11.27%	―

Shinagawa Refractories Co., Ltd. Corporate Events

Shinagawa Refractories Reports Mixed Financial Results for Q1 2025

Shinagawa Refractories Co., Ltd. reported its financial results for the three months ended June 30, 2025, showing a 13% increase in sales compared to the previous year. However, the company experienced a decline in operating and ordinary profits by 5.3% and 14.3%, respectively, with net income attributable to owners of the parent dropping by 39.7%. Despite these challenges, the company maintains its dividend forecast for the fiscal year ending March 31, 2026, and has revised its earnings forecast, projecting a 22.2% increase in sales for the full year.