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

• Market Cap: ¥86.70B
• Dividend Yield: 4.71%
• Average Volume (3M): 51.70K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.95
• Revenue Growth: 12.87%
• EPS Growth: -13.69%
• Country: JP
• Employees: 3,373
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 56.68
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥2,062.00 ▲(8.24% 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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategy, supporting long-term stability and expansion.

Cash Flow Generation

Strong cash flow generation supports capital investments and provides financial flexibility, essential for sustaining growth and weathering economic fluctuations.

Operational Efficiency

Stable gross profit margins demonstrate effective cost control and operational efficiency, crucial for maintaining profitability in competitive markets.

Negative Factors

Increasing Leverage

Rising leverage can increase financial risk and limit strategic flexibility, potentially impacting long-term financial health if not managed carefully.

Net Income Fluctuations

Fluctuating net income can lead to unpredictable earnings, affecting investor confidence and the company's ability to plan long-term investments.

Equity Ratio Decline

A declining equity ratio indicates increased reliance on debt, which can strain financial resources and elevate risk during economic downturns.

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

Company Description

Shinagawa Refractories Co., Ltd. manufactures and sells refractory products in Japan. It offers shaped refractory bricks, including basic, carbon-containing, fire clay and high alumina, silicon carbide, and silica bricks; monolithic refractories comprising castable and gunning refractories, precast shapes, plastic and ramming mixes, and refractory mortars; and functional products, such as slide gate plate bricks, submerged entry nozzles, monoblock stoppers, ladle shrouds, and Eddy current level meters, as well as mold powder for continuous casting. The company also provides ceramic fiber in various forms consisting of modules, preformed shapes, refractory insulating boards, sheets, and gaskets; and fine ceramics, including high precision large-sized ceramic parts, as well as alumina, zirconia, silicon carbide, a-Sialon, and porous ceramics for use in liquid crystal and semiconductor manufacturing equipment. In addition, it offers multifunctional absorbent and desiccants, and inorganic heat-resistant paints and adhesives; and related products. Further, the company designs, installs, and maintains various industrial furnaces and kilns. Its products are used in the steel, cement, glass, chemistry, and waste disposal industries. The company exports its engineering and refractory products to approximately 50 countries. Shinagawa Refractories Co., Ltd. was founded in 1875 and is headquartered in Tokyo, Japan.

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. demonstrates strong financial health with consistent revenue growth and efficient operations. The company maintains a solid return on equity despite increasing leverage. Cash flow generation is robust, supporting capital investments and operational needs, though attention to debt levels and net income fluctuations 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: Positive
• Last Price: 1905.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5351, the sentiment is Positive. The current price of 1905 is below the 20-day moving average (MA) of 1921.85, above the 50-day MA of 1882.60, and above the 200-day MA of 1731.78, indicating a neutral trend. The MACD of 12.22 indicates Positive momentum. The RSI at 48.92 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	¥11.84B	11.69	―	3.87%	0.58%	-9.72%
4026	74 Outperform	¥13.19B	9.94	―	2.81%	0.23%	-8.64%
5351	73 Outperform	¥86.70B	9.74	―	4.71%	12.87%	-13.69%
5273	65 Neutral	¥106.69B	12.41	―	2.00%	12.72%	28.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5391	56 Neutral	¥9.87B	316.08	―	4.72%	7.32%	-93.45%
5337	54 Neutral	¥16.88B	15.03	―	―	-5.45%	―

Shinagawa Refractories Co., Ltd. Corporate Events

Shinagawa Refra Co., Ltd. Reports Mixed Financial Results with Positive Outlook

Shinagawa Refra Co., Ltd. reported its consolidated financial results for the six months ending September 30, 2025, showing a 20% increase in sales compared to the previous year. Despite the rise in sales, the company’s interim net income decreased by 11.6%, indicating challenges in profitability. The company has revised its earnings forecast for the fiscal year ending March 31, 2026, reflecting a positive outlook with expected growth in sales and net income.

Shinagawa Refractories Announces Asset Transfer and Earnings Forecast Revision

Shinagawa Refractories Co., Ltd. has announced the transfer of fixed assets, specifically land previously used as rental property, to strengthen its financial position by repaying debt and securing funds for growth. This move has led to a revision of the company’s earnings forecast for the fiscal year ending March 31, 2026, with expectations of increased net income due to extraordinary gains from the asset sale and foreign exchange gains, while maintaining its dividend forecast.