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

• Market Cap: ¥6.77B
• Dividend Yield: 3.51%
• Average Volume (3M): 1.83K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.36
• Revenue Growth: 4.29%
• EPS Growth: 3.00%
• Country: JP
• Employees: 125
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 25.14
• Shares Outstanding: 6,140,850
• 10 Day Avg. Volume: 2,730
• 30 Day Avg. Volume: 1,833
• PEG Ratio: -1.17
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.90
• P/FCF Ratio: -6.77
• 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: 69 Neutral
• Price Target: ¥1,322.00 ▲(10.81% Upside)

Shinpo Co., Ltd. has a strong financial foundation with a robust balance sheet and efficient operations. However, technical indicators suggest short-term bearish momentum, which could impact near-term performance. The stock's attractive valuation, with a low P/E ratio and solid dividend yield, provides a positive outlook for long-term investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low financial leverage provides Shinpo Co., Ltd. with stability and flexibility to invest in growth opportunities and weather economic downturns.

Efficient Operations

Healthy EBIT and EBITDA margins suggest that Shinpo Co., Ltd. effectively manages its costs and operations, which can support profitability even amid revenue fluctuations.

Reputation for Quality

A strong reputation for quality and innovation helps Shinpo Co., Ltd. maintain customer loyalty and competitive advantage, supporting long-term revenue stability.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth can hinder Shinpo Co., Ltd.'s ability to scale and compete, potentially impacting its market position and long-term financial performance.

Free Cash Flow Issues

Negative free cash flow suggests difficulties in converting income into cash, which may limit Shinpo Co., Ltd.'s ability to fund operations and invest in growth without external financing.

Decline in Net Profit Margin

A declining net profit margin indicates potential cost pressures or pricing challenges, which could affect Shinpo Co., Ltd.'s profitability and competitive edge over time.

Shinpo Co., Ltd. Business Overview & Revenue Model

Company Description

Shinpo Co., Ltd. (5903) is a Japanese company primarily engaged in the manufacturing and sales of precision equipment and components. Operating in various sectors, including electronics, automotive, and industrial machinery, Shinpo specializes in producing high-quality products such as sensors, actuators, and other electronic components. The company is known for its commitment to innovation and quality, catering to a diverse clientele across multiple industries.

How the Company Makes Money

Shinpo Co., Ltd. generates revenue primarily through the sale of its precision equipment and components to various industries, including automotive, electronics, and industrial applications. The company's revenue model is based on both direct sales and long-term contracts with key clients, allowing for a steady income stream. Additionally, Shinpo engages in partnerships with other manufacturers and suppliers to enhance its product offerings and expand its market reach. Factors contributing to its earnings include a strong focus on research and development, enabling the company to introduce cutting-edge products that meet the evolving needs of its customers, as well as maintaining high operational efficiency to keep costs down.

Shinpo Co., Ltd. Financial Statement Overview

Summary

Shinpo Co., Ltd. demonstrates strong financial health with a solid balance sheet and efficient operations. However, challenges in revenue growth and free cash flow management could pose risks. The company is well-positioned but should focus on improving cash flow generation.

Income Statement

Shinpo Co., Ltd. shows a stable gross profit margin and a slight decline in net profit margin over the years. The revenue growth rate has been inconsistent, with a recent decline. EBIT and EBITDA margins are healthy, indicating efficient operations despite revenue fluctuations.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio, indicating low financial leverage. Return on equity is stable, reflecting effective use of equity capital. The equity ratio is robust, showcasing financial stability.

Cash Flow

Operating cash flow remains positive, but free cash flow has been negative recently, indicating potential cash management issues. The operating cash flow to net income ratio is healthy, but the free cash flow to net income ratio suggests challenges in converting income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.37B	7.37B	7.21B	6.39B	6.21B	5.50B
Gross Profit	2.58B	2.58B	2.62B	2.43B	2.34B	2.07B
EBITDA	1.02B	1.02B	1.12B	1.14B	814.17M	811.09M
Net Income	587.09M	586.47M	661.29M	682.89M	532.43M	512.93M
Balance Sheet
Total Assets	8.70B	8.70B	8.29B	7.72B	7.12B	6.77B
Cash, Cash Equivalents and Short-Term Investments	2.28B	2.28B	3.33B	2.87B	2.22B	2.99B
Total Debt	579.43M	566.72M	112.17M	188.43M	248.80M	309.76M
Total Liabilities	1.78B	1.78B	1.51B	1.43B	1.45B	1.49B
Stockholders Equity	6.92B	6.92B	6.79B	6.29B	5.67B	5.28B
Cash Flow
Free Cash Flow	0.00	-980.07M	724.66M	859.44M	-574.39M	481.07M
Operating Cash Flow	0.00	672.76M	787.57M	1.05B	378.04M	532.14M
Investing Cash Flow	0.00	-1.88B	472.46M	-250.00M	-937.08M	-5.13M
Financing Cash Flow	0.00	-31.07M	-267.12M	-224.02M	-226.06M	-227.56M

Shinpo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1193.00
• 50DMA: Negative
• 100DMA: Negative
• 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:5903, the sentiment is Positive. The current price of 1193 is above the 20-day moving average (MA) of 1189.95, below the 50-day MA of 1197.78, and below the 200-day MA of 1195.25, indicating a neutral trend. The MACD of -1.76 indicates Negative momentum. The RSI at 52.81 is Neutral, neither overbought nor oversold. The STOCH value of 31.46 is Neutral, 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	¥7.40B	10.34	―	2.42%	3.68%	-14.90%
6286	76 Outperform	¥8.67B	7.57	―	1.60%	11.62%	16.48%
6546	76 Outperform	¥6.48B	21.05	―	2.65%	2.49%	-32.03%
6402	73 Outperform	¥8.77B	9.57	―	2.15%	-0.94%	6.93%
5903	69 Neutral	¥6.77B	10.60	―	3.51%	4.29%	3.00%
6158	68 Neutral	¥5.54B	18.33	―	4.06%	-11.74%	-46.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%