Shinhokoku Material Corp. (5542) AI Stock Analysis

• Market Cap: ¥5.48B
• Dividend Yield: 2.77%
• Average Volume (3M): 9.81K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.51
• Revenue Growth: -3.45%
• EPS Growth: 34.97%
• Country: JP
• Employees: 84
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 5.99
• Shares Outstanding: 7,020,000
• 10 Day Avg. Volume: 12,830
• 30 Day Avg. Volume: 9,806
• PEG Ratio: -0.40
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 35.18
• 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: 65 Neutral
• Price Target: ¥871.00 ▲(20.30% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by mixed financial performance: a strong, low-leverage balance sheet and ongoing profitability are offset by declining revenue, margin compression, and notably weaker/volatile cash generation. Technicals are supportive (uptrend with positive MACD) but somewhat stretched (RSI ~70). Valuation is a modest positive with a reasonable P/E and ~3.1% dividend yield.

Positive Factors

Conservative balance sheet

Low leverage and a growing equity base provide durable financial flexibility. With debt ~0.19x equity the company can better withstand steel-cycle volatility, fund opportunistic capex or dividends, and access credit without immediate refinancing pressure over the next several months.

Negative Factors

Declining revenue trend

Two consecutive years of revenue decline indicate weakening demand or loss of share, eroding top-line momentum. Persistent top-line weakness reduces operating leverage, limits reinvestment capacity and makes margin recovery and sustainable growth more challenging over a 2–6 month horizon.

Shinhokoku Material Corp. Business Overview & Revenue Model

Company Description

Shinhokoku Material Corp. engages in the manufacture and sale of special alloy materials, and precision processed products in Japan. It offers low thermal expansion alloy castings for semiconductor and FPD manufacturing equipment industries; high-...

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Shinhokoku Material Corp. engages in the manufacture and sale of special alloy materials, and precision processed products in Japan. It offers low thermal expansion alloy castings for semiconductor and FPD manufacturing equipment industries; high-...

How the Company Makes Money

Shinhokoku Material Corp. generates revenue through the sale of its specialized chemical materials and components to manufacturers in the electronics and semiconductor sectors. Key revenue streams include direct sales to semiconductor fabrication ...

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Shinhokoku Material Corp. generates revenue through the sale of its specialized chemical materials and components to manufacturers in the electronics and semiconductor sectors. Key revenue streams include direct sales to semiconductor fabrication ...

Shinhokoku Material Corp. Financial Statement Overview

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	674.69M	803.15M	780.69M	782.45M	521.26M
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

• Technical Analysis Sentiment: Positive
• Last Price: 724.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 807.80, below the 50-day MA of 796.96, and below the 200-day MA of 763.45, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 22.11 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5463	74 Outperform	¥352.09B	12.83	―	3.26%	-7.77%	58.84%
5660	74 Outperform	¥8.84B	5.81	―	3.97%	0.34%	-1.55%
5440	70 Outperform	¥104.91B	10.61	―	3.70%	-3.06%	1.15%
5542	65 Neutral	¥5.48B	12.03	―	2.77%	-3.45%	34.97%
5408	64 Neutral	¥33.94B	-185.54	―	5.02%	-13.64%	-45.74%
5410	64 Neutral	¥54.63B	7.67	―	6.27%	-7.45%	-9.12%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%