Shinto Co. Ltd. (5380) AI Stock Analysis

• Market Cap: ¥1.24B
• Dividend Yield: 2.26%
• Average Volume (3M): 1.06K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.62
• Revenue Growth: -0.62%
• EPS Growth: N/A
• Country: JP
• Employees: 180
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction Materials
• EPS (TTM): -12.35
• Shares Outstanding: 831,682
• 10 Day Avg. Volume: 540
• 30 Day Avg. Volume: 1,060
• PEG Ratio: -0.08
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -5.97
• 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: 62 Neutral
• Price Target: ¥1,776.00 ▲(6.86% Upside)

Shinto Co. Ltd.'s overall stock score is primarily influenced by its stable financial position and fair valuation. However, weak technical indicators and challenges in cash flow management and revenue growth weigh on the score. The stock's valuation is a positive aspect, but improvements in financial performance are needed to enhance its attractiveness.

Positive Factors

Operational Efficiency

Shinto's operational efficiency suggests effective cost management and resource utilization, which can enhance competitive positioning and profitability over time.

Equity Management

A strong equity position provides financial stability and flexibility, allowing Shinto to invest in growth opportunities and withstand economic fluctuations.

Product Diversification

Diversification across sectors like automotive and aerospace reduces reliance on a single market, mitigating risks and enhancing revenue stability.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth can hinder long-term profitability and market expansion, necessitating strategic initiatives to boost sales.

Cash Flow Generation

Negative cash flows indicate potential liquidity issues, limiting Shinto's ability to reinvest in the business and manage financial obligations effectively.

Profitability Metrics

Low return on equity suggests inefficiencies in capital utilization, which can impact investor confidence and long-term financial performance.

Shinto Co. Ltd. Business Overview & Revenue Model

Company Description

Shinto Co. Ltd. (5380) is a Japanese company primarily engaged in the manufacturing and sale of precision machinery and components. Operating in sectors such as automotive, aerospace, and industrial equipment, Shinto specializes in providing high-quality products that enhance efficiency and performance in various applications. The company's core offerings include precision parts, tooling solutions, and custom engineering services tailored to meet the diverse needs of its clients.

How the Company Makes Money

Shinto Co. Ltd. generates revenue through multiple channels, primarily by selling precision machinery and components to a wide array of industries, including automotive, aerospace, and manufacturing. The company's revenue model is based on direct sales of its products, as well as contracts for custom engineering services, which allow clients to receive tailored solutions that meet specific operational requirements. Key revenue streams include the sale of precision parts, aftermarket services, and maintenance contracts that ensure ongoing customer support. Additionally, Shinto may engage in strategic partnerships with other manufacturers and suppliers to enhance its product offerings and reach new markets, contributing further to its profitability.

Shinto Co. Ltd. Financial Statement Overview

Summary

Shinto Co. Ltd. shows a stable financial position with strengths in equity management and operational efficiency. However, inconsistent revenue growth and challenges in cash flow generation pose risks to future profitability and liquidity. Improvements in cash flow management and sustaining revenue growth are necessary.

Income Statement

Shinto Co. Ltd. has shown a mixed performance in its income statement. The gross profit margin has remained relatively stable, indicating consistent cost management. However, the net profit margin has been volatile, with recent improvements but still below industry standards. Revenue growth has been inconsistent, with a decline in recent years, which is a concern for future profitability. The EBIT and EBITDA margins have shown improvement, reflecting better operational efficiency.

Balance Sheet

The balance sheet of Shinto Co. Ltd. indicates a strong equity position with a healthy equity ratio. The debt-to-equity ratio is moderate, suggesting manageable leverage levels. Return on equity has been low, reflecting challenges in generating returns for shareholders. Overall, the balance sheet is stable but shows room for improvement in profitability metrics.

Cash Flow

The cash flow statement reveals challenges in cash generation, with negative operating and free cash flows in the most recent period. The operating cash flow to net income ratio indicates inefficiencies in converting income into cash. The free cash flow to net income ratio has been positive in previous years, but recent declines highlight potential liquidity concerns. Improvement in cash flow management is necessary for financial stability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.63B	4.52B	5.04B	5.42B	5.01B
Gross Profit	903.55M	717.47M	801.08M	814.54M	825.39M
EBITDA	216.20M	57.84M	176.41M	145.21M	155.67M
Net Income	70.09M	-65.88M	24.09M	-1.63M	1.14M
Balance Sheet
Total Assets	6.25B	6.12B	6.42B	6.92B	6.42B
Cash, Cash Equivalents and Short-Term Investments	253.69M	276.18M	181.79M	227.53M	224.92M
Total Debt	2.06B	1.87B	1.88B	2.33B	1.82B
Total Liabilities	2.98B	2.88B	3.11B	3.62B	3.10B
Stockholders Equity	3.27B	3.23B	3.31B	3.30B	3.32B
Cash Flow
Free Cash Flow	-184.60M	145.89M	409.21M	-462.43M	307.08M
Operating Cash Flow	-127.58M	178.30M	469.33M	-412.37M	373.87M
Investing Cash Flow	-55.47M	-94.78M	-60.23M	-57.34M	-40.22M
Financing Cash Flow	161.75M	-39.13M	-454.84M	472.32M	-294.07M

Shinto Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1662.00
• 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:5380, the sentiment is Positive. The current price of 1662 is above the 20-day moving average (MA) of 1613.35, above the 50-day MA of 1653.26, and above the 200-day MA of 1601.17, indicating a bullish trend. The MACD of -5.36 indicates Negative momentum. The RSI at 57.52 is Neutral, neither overbought nor oversold. The STOCH value of 65.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5380.

Shinto Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5268	69 Neutral	¥10.94B	30.06	―	1.38%	-2.82%	-44.93%
5285	67 Neutral	¥21.07B	9.42	―	3.06%	18.19%	27.62%
5287	67 Neutral	¥4.20B	10.81	―	1.46%	-3.03%	-14.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5380	62 Neutral	¥1.24B	27.59	―	2.26%	-0.62%	―
5386	55 Neutral	¥3.16B	19.91	―	2.92%	-4.01%	-41.29%
5269	49 Neutral	¥18.40B	-65.80	―	3.24%	-3.73%	-143.19%