SHIBUYA KOGYO CO LTD (6340) AI Stock Analysis

• Market Cap: ¥94.35B
• Dividend Yield: 2.64%
• Average Volume (3M): 30.60K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.93
• Revenue Growth: 11.77%
• EPS Growth: 2.77%
• Country: JP
• Employees: 3,248
• Sector: Industrials
• Sector Strength: 71
• Industry: Industrial - Machinery
• EPS (TTM): 88.20
• Shares Outstanding: 28,149,876
• 10 Day Avg. Volume: 23,360
• 30 Day Avg. Volume: 30,596
• 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: ¥3,723.00
• Price Target Upside: 9.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥3,723.00 ▲(9.18% Upside)

The overall stock score of 69 reflects strong financial performance and attractive valuation, which are offset by weak technical indicators. The company's solid profitability and low leverage are significant strengths, while bearish technical signals suggest caution. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Financial Health

The company's strong financial health, characterized by solid profitability and low leverage, indicates resilience and the ability to withstand economic fluctuations, supporting long-term stability and growth.

Robust Balance Sheet

A robust balance sheet with low debt levels ensures financial flexibility and reduces risk, enabling the company to invest in growth opportunities and navigate economic downturns effectively.

Revenue Growth

Consistent revenue growth, even at a slower pace, reflects the company's ability to maintain market position and adapt to industry demands, ensuring sustained business expansion.

Negative Factors

Slowing Revenue Growth

A slowdown in revenue growth could indicate challenges in market expansion or increased competition, potentially impacting long-term profitability and market share if not addressed.

Volatility in Free Cash Flow

Volatility in free cash flow can constrain the company's ability to fund operations and growth initiatives, posing a risk to financial stability and strategic investments.

Decrease in Total Assets

A decrease in total assets and equity may signal potential operational inefficiencies or asset management issues, requiring careful monitoring to prevent long-term financial deterioration.

SHIBUYA KOGYO CO LTD Business Overview & Revenue Model

Company Description

Shibuya Kogyo Co., Ltd. is a Japanese company that specializes in the manufacturing and distribution of machinery and equipment primarily for the beverage, food, and pharmaceutical industries. The company provides a wide range of products, including filling machines, packaging systems, and related equipment. Shibuya Kogyo is known for its innovative solutions that enhance operational efficiency and product quality for its clients worldwide.

How the Company Makes Money

Shibuya Kogyo Co., Ltd. generates revenue primarily through the sale of its machinery and equipment to various industries, including beverage, food, and pharmaceuticals. The company's key revenue streams include the manufacturing and sale of filling and packaging machines, which are crucial for production lines in these sectors. In addition to direct sales, Shibuya Kogyo may engage in service contracts, maintenance agreements, and after-sales support, providing additional revenue. The company likely benefits from strategic partnerships with major industry players and continuous investment in research and development to innovate and maintain a competitive edge.

SHIBUYA KOGYO CO LTD Financial Statement Overview

Summary

SHIBUYA KOGYO CO LTD demonstrates strong financial health with solid profitability and low leverage. The income statement reflects efficient operations and consistent revenue growth, albeit at a slowing pace. The balance sheet is robust with low debt levels, while the cash flow statement indicates strong cash generation, though with some volatility in free cash flow.

Income Statement

The company shows strong revenue growth with a 1.95% increase in the latest year, supported by a healthy gross profit margin of 19.54% and a net profit margin of 7.79%. The EBIT and EBITDA margins are also robust at 10.64% and 13.33%, respectively, indicating efficient operations and profitability. However, the revenue growth rate has slowed compared to previous years, which could be a concern if the trend continues.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.034, reflecting prudent financial management and low leverage. The return on equity is decent at 9.31%, indicating effective use of equity to generate profits. The equity ratio stands at 67.69%, showing a strong equity base relative to total assets. However, the decrease in total assets and stockholders' equity compared to previous years suggests a need for careful monitoring.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow, with a growth rate of 'Infinity' due to a previous negative base. The operating cash flow to net income ratio is 0.90, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is lower at 0.23, suggesting potential constraints in free cash flow relative to earnings. The volatility in free cash flow growth over the years is a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	129.19B	129.02B	115.43B	97.84B	96.22B	103.97B
Gross Profit	26.00B	25.21B	24.08B	18.20B	23.62B	22.87B
EBITDA	18.40B	17.20B	16.75B	11.35B	16.10B	15.21B
Net Income	10.84B	10.05B	9.78B	5.93B	9.26B	8.83B
Balance Sheet
Total Assets	159.11B	159.43B	161.90B	142.43B	136.98B	132.45B
Cash, Cash Equivalents and Short-Term Investments	40.52B	45.58B	47.20B	42.95B	42.08B	35.55B
Total Debt	3.90B	3.70B	4.60B	5.70B	2.53B	3.64B
Total Liabilities	53.30B	51.49B	60.88B	52.25B	51.56B	55.51B
Stockholders Equity	105.80B	107.92B	101.02B	90.17B	85.42B	76.92B
Cash Flow
Free Cash Flow	0.00	2.29B	6.87B	-1.19B	8.82B	9.80B
Operating Cash Flow	0.00	9.07B	10.43B	4.85B	12.80B	14.32B
Investing Cash Flow	0.00	-6.62B	-3.45B	-5.33B	-3.56B	-2.60B
Financing Cash Flow	0.00	-3.81B	-3.04B	1.22B	-3.10B	-3.03B

SHIBUYA KOGYO CO LTD Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3410.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6340, the sentiment is Negative. The current price of 3410 is below the 20-day moving average (MA) of 3526.50, below the 50-day MA of 3493.50, and above the 200-day MA of 3386.62, indicating a neutral trend. The MACD of -20.41 indicates Positive momentum. The RSI at 36.61 is Neutral, neither overbought nor oversold. The STOCH value of 12.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6340.

SHIBUYA KOGYO CO LTD Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6250	82 Outperform	¥102.71B	7.59		3.44%	7.65%	8.12%
6490	77 Outperform	¥96.47B	11.44		3.05%	-0.98%	-18.48%
6486	74 Outperform	¥130.67B	22.96		3.59%	>-0.01%	-26.82%
6284	74 Outperform	¥105.66B	14.05		2.07%	15.99%	32.43%
6455	73 Outperform	¥105.73B	10.91		2.46%	12.25%	32.16%
6340	69 Neutral	¥94.35B	9.39		2.64%	11.77%	2.77%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%