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

• Market Cap: ¥117.81B
• Dividend Yield: 4.28%
• Average Volume (3M): 51.70K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.96
• Revenue Growth: 12.87%
• EPS Growth: -13.69%
• Country: JP
• Employees: 3,373
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 562.07
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥2,872.00 ▲(35.79% Upside)
• Action: Reiterated Date: 12/13/25
• Date: Action: Reiterated 12/13/25

Shinagawa Refractories Co., Ltd. scores well due to its strong financial performance and robust technical indicators. The stock's attractive valuation, with a low P/E ratio and high dividend yield, further enhances its investment appeal. While financial health is solid, attention to leverage and net income fluctuations is recommended. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Recurring replacement demand

Shinagawa's core products are consumables in high-temperature processes, creating recurring replacement demand tied to relining cycles. This provides stable, repeatable revenue streams and visibility across maintenance schedules, supporting durable top-line predictability and customer retention.

Bundled engineering and services

The firm's combination of refractory materials plus engineering, installation and maintenance services increases switching costs and deepens customer relationships. Bundled solutions enhance lifecycle value capture, differentiate offerings, and support higher-margin, recurring service revenue over time.

Strong cash generation

Consistent growth in operating cash flow and improved free cash flow indicate robust cash conversion from operations. This strengthens the company's ability to fund capex and working capital internally, lowering reliance on external financing and enabling reinvestment in operations and service capabilities.

Negative Factors

Rising leverage

An increasing debt-to-equity profile and a declining equity ratio reduce financial flexibility and raise interest burden risk. In a capital-intensive business, higher leverage can constrain the ability to absorb demand shocks, limit strategic investments, and increase vulnerability to rising rates or weaker cash flows.

Profitability volatility

Volatile net income and fluctuating net profit margins complicate forecasting and can lead to uneven free cash flow conversion. Such variability may reflect exposure to input cost swings and operational disruptions, reducing predictability for investors and limiting sustained margin expansion plans.

Cyclical end-market exposure

Revenue and margins are structurally tied to cyclical steel and heavy-industry production, plus volatile raw material and energy prices. This concentration in capital goods cycles can amplify downturns, extend recovery periods, and make long-term growth dependent on macroindustry health rather than company-specific factors.

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. Despite increasing leverage, the company maintains a solid return on equity. Cash flow generation is robust, supporting capital investments and operational needs. 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: 2115.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2115 is below the 20-day moving average (MA) of 2329.80, below the 50-day MA of 2220.16, and above the 200-day MA of 1894.14, indicating a bullish trend. The MACD of 72.91 indicates Negative momentum. The RSI at 74.16 is Negative, neither overbought nor oversold. The STOCH value of 73.55 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
5351	80 Outperform	¥117.81B	3.59	―	4.28%	12.87%	-13.69%
1969	79 Outperform	¥727.12B	16.31	―	2.13%	15.98%	82.99%
1979	76 Outperform	¥245.18B	18.03	8.53%	2.45%	5.14%	-10.92%
5273	75 Outperform	¥117.70B	11.34	―	1.92%	12.72%	28.48%
4026	74 Outperform	¥17.96B	11.80	―	2.81%	0.23%	-8.64%
1972	74 Outperform	¥29.41B	10.69	―	7.56%	8.01%	13.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Shinagawa Refractories Co., Ltd. Corporate Events

Shinagawa Refractories to Relocate Australian Kwinana Plant After Compulsory Land Acquisition

Shinagawa Refractories will relocate its Australian subsidiary’s Kwinana Plant after agreeing to a compulsory land acquisition by the Western Australian government, which needs the site for road access to a planned new container port. The plant’s current land in Naval Base, Kwinana, will be transferred to Main Roads Western Australia, while Shinagawa will lease the site and continue operations there for about two and a half years.

The company plans to move the plant to the nearby Orion Industrial Park, with the existing Kwinana facility expected to close around September 2028 when the new plant starts operating. Compensation terms for the compulsory acquisition are still being negotiated with the state and are expected to be finalized by mid-April 2026, and Shinagawa has yet to determine the impact on its consolidated earnings for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:5351) stock is a Buy with a Yen2734.00 price target. To see the full list of analyst forecasts on Shinagawa Refractories Co., Ltd. stock, see the JP:5351 Stock Forecast page.

Shinagawa Refractories Posts Profit Surge and Lifts Full-Year Outlook on Strong Nine-Month Results

Shinagawa Refractories reported strong consolidated results for the nine months ended December 31, 2025, with net sales rising 23.7% year-on-year to ¥130.0 billion and EBITDA up 19.0%, while operating income slipped 10.0%. Net income attributable to owners of the parent surged 278.4% to ¥30.0 billion, driving a sharp increase in earnings per share and lifting the equity ratio to just over 50% as total assets and net assets expanded significantly. The company kept its interim dividend at ¥45 per share and maintained its full-year dividend forecast of ¥90, signaling confidence in shareholder returns. For the full fiscal year to March 31, 2026, Shinagawa raised its consolidated earnings forecast, now projecting a 22.2% increase in net sales and a more than threefold rise in net income versus the prior year, despite a slight expected decline in operating income. During the period, the scope of consolidation changed with the addition of Brazil-based Reframax Engenharia S.A. and the exclusion of Shinagawa Fine Ceramics Co., Ltd., reflecting ongoing portfolio realignment that may influence its positioning in key industrial and overseas markets.

The most recent analyst rating on (JP:5351) stock is a Buy with a Yen2285.00 price target. To see the full list of analyst forecasts on Shinagawa Refractories Co., Ltd. stock, see the JP:5351 Stock Forecast page.

Shinagawa Refractories Announces Asset Transfer and Earnings Forecast Revision

Shinagawa Refractories Co., Ltd. announced the transfer of fixed assets, resulting in a significant extraordinary income of approximately 28,000 million yen. This move is aimed at strengthening the company’s financial position by repaying debt and securing funds for sustainable growth. Consequently, the company revised its earnings forecast for the fiscal year ending March 31, 2026, with net income expected to exceed previous estimates, while maintaining its annual dividend forecast.

The most recent analyst rating on (JP:5351) stock is a Buy with a Yen2062.00 price target. To see the full list of analyst forecasts on Shinagawa Refractories Co., Ltd. stock, see the JP:5351 Stock Forecast page.