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

• Market Cap: ¥6.99B
• Dividend Yield: 3.4%
• Average Volume (3M): 2.69K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.34
• Revenue Growth: 2.19%
• EPS Growth: -9.84%
• Country: JP
• Employees: 125
• Sector: Industrials
• Sector Strength: 74
• Industry: Industrial - Machinery
• EPS (TTM): 19.38
• Shares Outstanding: 6,140,850
• 10 Day Avg. Volume: 2,370
• 30 Day Avg. Volume: 2,690
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥1,405.00
• Price Target Upside: 13.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: ¥1,405.00 ▲(13.77% Upside)

Shinpo Co., Ltd. receives a strong overall score due to its robust financial health and positive technical indicators. The stock is well-valued with a reasonable P/E ratio and attractive dividend yield. However, challenges in revenue growth and free cash flow management slightly temper the outlook.

Shinpo Co., Ltd. Business Overview & Revenue Model

Company Description

Shinpo Co., Ltd. (5903) is a Japanese company primarily engaged in the manufacturing and sale of kitchen equipment. The company specializes in producing high-quality and innovative commercial kitchen appliances, including gas and electric grills, which are widely used in restaurants and other food service establishments. Shinpo Co., Ltd. is recognized for its commitment to quality and technological advancement, ensuring reliable and efficient products for its customers.

How the Company Makes Money

Shinpo Co., Ltd. generates revenue through the sale of its kitchen equipment products. The company's key revenue streams include the sale of commercial grills and other kitchen appliances, which are distributed to restaurants, hotels, and catering businesses. Shinpo Co., Ltd. leverages its reputation for quality and innovation to maintain strong relationships with clients in the food service industry, ensuring repeat business and customer loyalty. Additionally, the company may engage in partnerships with distributors and retailers to expand its market reach and increase sales. The company's earnings are also influenced by its ability to adapt to market trends and technological advancements in the kitchen equipment sector.

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	7.31B	7.37B	7.21B	6.39B	6.21B	5.50B
Gross Profit	2.60B	2.58B	2.62B	2.43B	2.34B	2.07B
EBITDA	1.04B	1.02B	1.12B	1.14B	814.17M	811.09M
Net Income	601.81M	586.47M	661.29M	682.89M	532.43M	512.93M
Balance Sheet
Total Assets	8.99B	8.70B	8.29B	7.72B	7.12B	6.77B
Cash, Cash Equivalents and Short-Term Investments	2.65B	2.28B	3.33B	2.87B	2.22B	2.99B
Total Debt	525.00M	579.43M	112.17M	188.43M	248.80M	309.76M
Total Liabilities	2.19B	1.73B	1.51B	1.43B	1.45B	1.49B
Stockholders Equity	6.80B	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: 1235.00
• 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:5903, the sentiment is Positive. The current price of 1235 is above the 20-day moving average (MA) of 1210.20, above the 50-day MA of 1197.00, and above the 200-day MA of 1192.01, indicating a bullish trend. The MACD of 11.69 indicates Negative momentum. The RSI at 61.75 is Neutral, neither overbought nor oversold. The STOCH value of 74.83 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	¥7.78B	9.21		2.54%	11.24%	28.61%
5903	78 Outperform	¥6.99B	11.71		3.40%	2.19%	-9.84%
6286	77 Outperform	¥6.13B	5.80		1.88%	11.90%	10.46%
6546	74 Outperform	¥6.39B	16.12		2.67%	1.94%	6.32%
6402	74 Outperform	¥8.27B	9.58		2.28%	4.67%	16.03%
6158	68 Neutral	¥5.70B	15.31		3.85%	-4.13%	-39.40%
Sector *	64 Neutral	$10.66B	15.60	8.14%	2.00%	2.79%	-14.82%