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

• Market Cap: ¥78.70B
• Dividend Yield: 5.38%
• Average Volume (3M): 54.87K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.97
• Revenue Growth: -0.07%
• EPS Growth: -34.61%
• Country: JP
• Employees: 3,373
• Sector: Industrials
• Sector Strength: 91
• Industry: Construction
• EPS (TTM): 40.65
• Shares Outstanding: 47,146,830
• 10 Day Avg. Volume: 61,790
• 30 Day Avg. Volume: 54,870
• PEG Ratio: -1.05
• Price to Book (P/B): 0.86
• 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: ¥1,850.00
• Price Target Upside: 10.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 76 Outperform
• Price Target: ¥1,870.00 ▲(11.84%Upside)

Shinagawa Refractories Co., Ltd. exhibits strong overall performance with a solid financial foundation and attractive valuation metrics. While technical indicators suggest stability without strong momentum, the stock's low P/E ratio and high dividend yield offer significant investor appeal. Financial performance, particularly robust cash flow and revenue growth, is a primary strength, with valuation further enhancing the stock's attractiveness.

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

Company Description

Shinagawa Refractories Co., Ltd. (5351) is a Japanese company specializing in the production and distribution of refractory materials. These materials are crucial for high-temperature industrial processes, serving sectors such as steel, cement, glass, and petrochemicals. The company's product portfolio includes a variety of refractories, like bricks, monolithic refractories, and functional products, designed to withstand extreme conditions and enhance the efficiency and lifespan of industrial equipment.

How the Company Makes Money

Shinagawa Refractories Co., Ltd. generates revenue primarily through the sale of its refractory products to industries that require high-temperature resistant materials. The company's key revenue streams include the production and sale of refractory bricks, monolithic refractories, and specialty products tailored to specific industrial applications. Additionally, Shinagawa may engage in partnerships and collaborations with industrial companies to provide customized solutions and technical support, enhancing their value proposition. The company's earnings are influenced by the demand from major industrial sectors like steel and cement, which are dependent on global economic conditions and infrastructure development.

Shinagawa Refractories Co., Ltd. Financial Statement Overview

Summary

Shinagawa Refractories Co., Ltd. demonstrates strong financial health with consistent revenue growth and efficient operations. Despite increasing leverage, the company maintains a solid return on equity. Robust cash flow supports capital investments, 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	144.07B	144.18B	124.96B	110.78B	99.97B
Gross Profit	35.14B	33.03B	27.41B	24.56B	19.95B
EBITDA	20.25B	26.64B	13.78B	12.79B	9.87B
Net Income	9.78B	15.28B	8.31B	5.31B	2.11B
Balance Sheet
Total Assets	195.21B	155.14B	143.90B	119.71B	110.20B
Cash, Cash Equivalents and Short-Term Investments	26.74B	21.38B	18.32B	16.89B	15.72B
Total Debt	61.92B	28.08B	34.30B	22.85B	13.68B
Total Liabilities	101.38B	68.17B	72.48B	56.47B	39.87B
Stockholders Equity	89.00B	83.42B	68.11B	60.17B	60.68B
Cash Flow
Free Cash Flow	7.26B	6.05B	3.65B	5.96B	5.01B
Operating Cash Flow	13.10B	11.75B	10.28B	9.49B	9.33B
Investing Cash Flow	-29.83B	2.58B	-15.95B	-5.17B	-4.01B
Financing Cash Flow	22.00B	-11.49B	6.84B	-3.35B	-2.41B

Shinagawa Refractories Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1672.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 1672 is above the 20-day moving average (MA) of 1646.40, above the 50-day MA of 1650.10, and above the 200-day MA of 1660.42, indicating a bullish trend. The MACD of 5.37 indicates Negative momentum. The RSI at 59.12 is Neutral, neither overbought nor oversold. The STOCH value of 76.94 is Neutral, 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	¥10.34B	9.06		4.41%	-4.86%	31.22%
5351	76 Outperform	¥78.70B	7.80		5.38%	-0.07%	-34.61%
5273	76 Outperform	¥111.27B	13.86		2.06%	5.59%	11.26%
4026	74 Outperform	¥11.19B	7.84		3.55%	7.70%	13.39%
Sector *	67 Neutral	€2.71B	19.10	7.73%	3.01%	-1.49%	-31.61%
5391	62 Neutral	¥9.14B	6.10		5.02%	5.18%	-104.41%
5337	49 Neutral	¥30.15B	161.03		―	-11.92%	―

Shinagawa Refractories Co., Ltd. Corporate Events

Shinagawa Refractories Announces Treasury Stock Disposal for Director Compensation

Shinagawa Refractories Co., Ltd. has announced the disposal of 29,882 shares of its treasury stock as part of a performance-based stock compensation plan for its directors. This move aims to align the interests of the directors with those of the shareholders and enhance corporate value. The disposal is part of a broader strategy to incentivize directors through a performance-linked stock-based compensation plan, which was approved at the company’s 189th Ordinary General Meeting of Shareholders. The plan involves issuing or disposing of common stock to eligible directors, with a transfer restriction period until they lose their directorship.

Shinagawa Refractories Details Shareholder Relations and Market Position

Shinagawa Refractories Co., Ltd. has announced details concerning its controlling shareholders, highlighting its relationship with JFE Steel Corporation, which holds 34.9% of its voting rights. Despite this significant ownership, Shinagawa maintains a degree of operational independence, conducting transactions with JFE Steel as it would with any general business partner. The announcement underscores the company’s strategic positioning within the steel industry and its reliance on market conditions.

Shinagawa Refractories Expands Global Reach with Brazilian Acquisition

Shinagawa Refractories Co., Ltd. has completed the acquisition of a 60% stake in Reframax Engenharia Ltda., a Brazilian engineering company, to enhance its presence in the Americas and accelerate its Vision 2030 strategy. This acquisition is part of Shinagawa’s broader strategy to expand its engineering business globally, leveraging Reframax’s expertise and market position in South America, while addressing labor shortages and maintaining strong cash flow and long-term growth.

Shinagawa Refractories Reports Fiscal Year 2025 Financial Results Amidst Strategic Changes

Shinagawa Refractories Co., Ltd. reported its financial results for the fiscal year ending March 2025, showing a slight decline in sales and significant drops in net income and comprehensive income compared to the previous year. The company is undergoing changes with new consolidations and accounting policy adjustments, which may impact its future financial performance and stakeholder interests.