Shinpo Co., Ltd. (5903) AI Stock Analysis

• Market Cap: ¥6.73B
• Dividend Yield: 3.36%
• Average Volume (3M): 2.15K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.34
• Revenue Growth: 3.91%
• EPS Growth: -11.02%
• Country: JP
• Employees: 125
• Sector: Industrials
• Sector Strength: 90
• Industry: Industrial - Machinery
• EPS (TTM): 18.40
• Shares Outstanding: 6,140,850
• 10 Day Avg. Volume: 2,340
• 30 Day Avg. Volume: 2,150
• PEG Ratio: -2.02
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,380.00
• Price Target Upside: 15.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 78 Outperform
• Price Target: ¥1,357.00 ▲(13.75%Upside)

Shinpo Co., Ltd. receives a strong overall stock score driven by its robust financial performance and attractive valuation. Technical indicators further support a positive outlook. The absence of cash flow transparency and earnings call data slightly tempers the score, but the company's financial health remains a standout feature.

Shinpo Co., Ltd. Business Overview & Revenue Model

Company Description

Shinpo Co., Ltd. (5903) is a Japanese company specializing in the manufacturing and sale of commercial kitchen equipment. The company is known for its innovative and high-quality products, including barbeque grills, kitchen appliances, and related accessories. Shinpo serves a wide array of clients, ranging from restaurants and hotels to catering services, primarily focusing on enhancing the dining experience through its durable and efficient kitchen solutions.

How the Company Makes Money

Shinpo Co., Ltd. generates revenue primarily through the sale of its commercial kitchen equipment and appliances. The company designs and manufactures a variety of products that cater to the needs of the food service industry. Key revenue streams include direct sales to restaurants, hotels, and catering companies, as well as through partnerships with distributors and retailers. Shinpo's focus on innovation and quality helps maintain a strong market presence, while its ability to adapt to industry trends and customer demands contributes to sustained earnings.

Shinpo Co., Ltd. Financial Statement Overview

Summary

Shinpo Co., Ltd. shows strong financial performance with impressive revenue growth and solid profitability margins. A robust balance sheet with low debt emphasizes financial stability. However, limited cash flow data restricts a full assessment of cash management.

Income Statement

Shinpo Co., Ltd. has demonstrated impressive revenue growth, with a notable increase of 17.86% from 2023 to 2024, indicating strong market demand and operational efficiency. The Gross Profit Margin remains robust at 35.82% for the TTM, showing effective cost management. Net Profit Margin is healthy at 8.90%, and the EBITDA Margin is strong at 14.96%, reflecting solid profitability. However, there is a slight decline in EBIT Margin to 14.16% in the TTM, suggesting potential cost pressures.

Balance Sheet

The company's financial stability is reflected in a low Debt-to-Equity Ratio of 0.01, indicating minimal reliance on debt financing. The Return on Equity (ROE) is a solid 9.94%, showcasing effective utilization of equity to generate profits. The Equity Ratio is high at 81.79%, further emphasizing a strong capital structure with significant equity backing. These metrics indicate a financially stable company with low leverage and a strong equity base.

Cash Flow

While the Free Cash Flow for the TTM is unavailable, previous periods show positive cash generation, as seen with a Free Cash Flow of ¥724,658,000 in June 2024. The Operating Cash Flow to Net Income Ratio is not calculable due to missing data, which limits the assessment of cash conversion efficiency. Overall, the company shows potential in cash generation, but incomplete data restricts a comprehensive analysis.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	7.21B	6.39B	6.21B	5.50B	5.83B
Gross Profit	2.62B	2.43B	2.34B	2.07B	2.16B
EBITDA	1.14B	1.14B	814.17M	811.09M	748.48M
Net Income	661.29M	682.89M	532.43M	512.93M	445.90M
Balance Sheet
Total Assets	8.29B	7.72B	7.12B	6.77B	6.10B
Cash, Cash Equivalents and Short-Term Investments	3.33B	2.87B	2.22B	2.99B	2.63B
Total Debt	112.17M	188.43M	248.80M	309.76M	394.88M
Total Liabilities	1.51B	1.43B	1.45B	1.49B	1.26B
Stockholders Equity	6.79B	6.29B	5.67B	5.28B	4.84B
Cash Flow
Free Cash Flow	724.66M	859.44M	-574.39M	481.07M	-382.03M
Operating Cash Flow	787.57M	1.05B	378.04M	532.14M	508.02M
Investing Cash Flow	472.46M	-250.00M	-937.08M	-5.13M	-884.30M
Financing Cash Flow	-267.12M	-224.02M	-226.06M	-227.56M	129.35M

Shinpo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1193.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5903, the sentiment is Positive. The current price of 1193 is above the 20-day moving average (MA) of 1187.97, above the 50-day MA of 1179.32, and below the 200-day MA of 1207.58, indicating a neutral trend. The MACD of 3.69 indicates Negative momentum. The RSI at 62.00 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5903.

Shinpo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6346	80 Outperform	¥7.05B	9.45		4.38%	27.85%	129.41%
6402	80 Outperform	¥6.75B	8.47		2.80%	7.23%	13.09%
5903	78 Outperform	¥6.73B	11.09		3.36%	3.91%	-11.02%
6286	77 Outperform	¥5.58B	5.37		2.30%	11.07%	34.18%
6546	74 Outperform	¥6.08B	12.66		1.77%	3.62%	40.39%
6158	74 Outperform	¥5.61B	13.26		4.14%	0.20%	-40.35%
Sector *	67 Neutral	€3.56B	22.67	11.11%	4.18%	1.63%	-21.73%