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Shinagawa Refractories Co., Ltd. (JP:5351)
:5351
Japanese Market
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Shinagawa Refractories Co., Ltd. (5351) AI Stock Analysis

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JP:5351

Shinagawa Refractories Co., Ltd.

(5351)

Rating:75Outperform
Price Target:
¥1,865.00
▼(-3.67% Downside)
Shinagawa Refractories Co., Ltd. presents a solid investment opportunity with strong financial performance and attractive valuation metrics. The company's consistent revenue growth, efficient operations, and robust cash flow support its financial health. Despite neutral technical indicators, the low P/E ratio and high dividend yield enhance its investment appeal. Monitoring of debt levels and net income fluctuations is recommended.

Shinagawa Refractories Co., Ltd. (5351) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionShinagawa 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 MoneyShinagawa 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. 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
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue144.07B144.07B144.18B124.96B110.78B99.97B
Gross Profit35.14B35.14B33.03B27.41B24.56B19.95B
EBITDA18.90B20.25B26.64B13.78B12.19B9.87B
Net Income9.78B9.78B15.28B8.31B5.31B2.11B
Balance Sheet
Total Assets195.21B195.21B155.14B143.90B119.71B110.20B
Cash, Cash Equivalents and Short-Term Investments26.74B26.74B21.38B18.32B16.89B15.72B
Total Debt61.92B61.92B28.08B34.30B22.85B13.68B
Total Liabilities101.38B101.38B68.17B72.48B56.47B39.87B
Stockholders Equity89.00B89.00B83.42B68.11B60.17B60.68B
Cash Flow
Free Cash Flow0.007.26B6.05B3.65B5.96B5.01B
Operating Cash Flow0.0013.10B11.75B10.28B9.49B9.33B
Investing Cash Flow0.00-29.83B2.58B-15.95B-5.17B-4.01B
Financing Cash Flow0.0022.00B-11.49B6.84B-3.35B-2.41B

Shinagawa Refractories Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1936.00
Price Trends
50DMA
1746.36
Positive
100DMA
1679.32
Positive
200DMA
1677.75
Positive
Market Momentum
MACD
54.33
Positive
RSI
74.00
Negative
STOCH
72.49
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 1936 is above the 20-day moving average (MA) of 1878.75, above the 50-day MA of 1746.36, and above the 200-day MA of 1677.75, indicating a bullish trend. The MACD of 54.33 indicates Positive momentum. The RSI at 74.00 is Negative, neither overbought nor oversold. The STOCH value of 72.49 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥11.41B12.24
4.00%-2.90%-24.21%
76
Outperform
¥126.57B14.97
1.47%8.66%12.34%
75
Outperform
¥90.14B10.13
4.65%5.02%-22.36%
74
Outperform
¥12.12B8.49
3.31%5.51%-11.66%
64
Neutral
$10.96B16.358.89%1.96%2.68%-15.17%
62
Neutral
¥9.59B306.27
4.79%4.42%-98.20%
46
Neutral
¥22.36B19.11
-11.27%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5351
Shinagawa Refractories Co., Ltd.
1,936.00
283.68
17.17%
JP:4026
Konoshima Chemical Co., Ltd.
1,330.00
-486.04
-26.76%
JP:5237
Nozawa Corp.
999.00
182.17
22.30%
JP:5273
Mitani Sekisan Co., Ltd.
8,850.00
3,519.52
66.03%
JP:5337
Danto Holdings Corporation
646.00
210.00
48.17%
JP:5391
A&A Material Corporation
1,253.00
63.02
5.30%

Shinagawa Refractories Co., Ltd. Corporate Events

Shinagawa Refractories Reports Mixed Financial Results for Q1 2025
Aug 8, 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.

Shinagawa Refractories Announces Treasury Stock Disposal for Director Compensation
Jun 26, 2025

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
Jun 26, 2025

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
Jun 2, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025