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Shinhokoku Material Corp.
(5542)
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Rating:58Neutral
Price Target:
¥908.00
▲(25.41% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by mixed financial performance: a conservative balance sheet and profitability are tempered by recent revenue/margin pressure and weak, volatile cash flow. Technical indicators are bearish and weigh on near-term attractiveness, while a reasonable P/E and solid dividend yield partially offset these risks.
Positive Factors
Conservative balance sheet / low leverage
The balance sheet is conservatively positioned with debt around 0.19x equity and a trend of declining leverage. This durable financial flexibility reduces refinancing risk, supports discretionary capital allocation (capex, dividends, buybacks) and gives management room to handle cyclical downturns.
Negative Factors
Recent revenue declines
Consecutive top-line declines weaken scale economics and reduce bargaining leverage with suppliers and customers. Persistent revenue contraction pressures operating leverage, limits reinvestment capacity, and makes it harder to sustainably restore margins and cash generation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet / low leverage
The balance sheet is conservatively positioned with debt around 0.19x equity and a trend of declining leverage. This durable financial flexibility reduces refinancing risk, supports discretionary capital allocation (capex, dividends, buybacks) and gives management room to handle cyclical downturns.
Read all positive factors
Shinhokoku Material Corp. (5542) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.98B
Dividend Yield2.54%
Average Volume (3M)9.81K
Price to Earnings (P/E)13.7
Beta (1Y)0.60
Revenue Growth-5.79%
EPS Growth-18.54%
CountryJP
Employees99
SectorGeneral
Sector StrengthN/A
IndustryIndustrial Materials
Share Statistics
EPS (TTM)64.82
Shares Outstanding7,020,000
10 Day Avg. Volume12,830
30 Day Avg. Volume9,806
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)0.83
Price to Sales (P/S)0.87
P/FCF Ratio35.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Shinhokoku Material Corp. Business Overview & Revenue Model
Company Description
Shinhokoku Material Corporation, a Japanese enterprise, specializes in the development, manufacturing, and distribution of advanced alloy materials and precision-engineered products. Their diverse offerings include low thermal expansion alloy cast...
How the Company Makes Money
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Shinhokoku Material Corp. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.18B | 5.54B | 6.21B | 6.48B | 6.36B | 4.66B |
| Gross Profit | 550.38M | 1.37B | 1.48B | 1.44B | 1.43B | 1.02B |
| EBITDA | 327.83M | 734.84M | 933.38M | 792.15M | 817.26M | 580.65M |
| Net Income | 214.59M | 401.14M | 576.42M | 476.04M | 491.85M | 322.74M |
Balance Sheet | ||||||
| Total Assets | ― | 7.73B | 7.82B | 7.78B | 7.30B | 6.99B |
| Cash, Cash Equivalents and Short-Term Investments | ― | 3.31B | 3.43B | 2.56B | 2.37B | 2.55B |
| Total Debt | ― | 1.11B | 1.11B | 1.51B | 1.52B | 1.52B |
| Total Liabilities | ― | 1.92B | 2.20B | 2.54B | 2.48B | 2.52B |
| Stockholders Equity | ― | 5.81B | 5.61B | 5.24B | 4.82B | 4.47B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 137.21M | 1.30B | 321.99M | -3.99M | -336.11M |
| Operating Cash Flow | 0.00 | 483.95M | 1.41B | 497.28M | 169.73M | -243.28M |
| Investing Cash Flow | 0.00 | -1.86B | 4.86M | -197.63M | -201.11M | -97.33M |
| Financing Cash Flow | 0.00 | -239.98M | -554.29M | -104.26M | -151.80M | -160.38M |
Shinhokoku Material Corp. Technical Analysis
Positive
724.00
Price Trends
805.91
Positive
806.39
Positive
777.96
Positive
Market Momentum
5.29
Negative
74.84
Negative
64.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5542, the sentiment is Positive. The current price of 724 is below the 20-day moving average (MA) of 801.45, below the 50-day MA of 805.91, and below the 200-day MA of 777.96, indicating a bullish trend. The MACD of 5.29 indicates Negative momentum. The RSI at 74.84 is Negative, neither overbought nor oversold. The STOCH value of 64.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5542.
Shinhokoku Material Corp. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ¥419.51B | 14.10 | ― | 3.26% | -1.88% | 20.80% | |
72 Outperform | ¥42.43B | 7.39 | ― | 6.27% | -3.04% | -49.39% | |
68 Neutral | ¥11.04B | 13.09 | ― | 3.97% | -2.85% | -17.52% | |
66 Neutral | ¥33.94B | 10.42 | ― | 5.02% | -8.00% | -35.22% | |
63 Neutral | ¥82.92B | 9.20 | ― | 3.70% | 2.94% | -16.58% | |
58 Neutral | ¥5.98B | 13.69 | ― | 2.77% | -5.79% | -18.54% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:5542
Shinhokoku Material Corp.
984.00
211.95
27.45%
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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.