SHIBUYA KOGYO CO LTD (6340) AI Stock Analysis

• Market Cap: ¥94.90B
• Dividend Yield: 2.62%
• Average Volume (3M): 32.22K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.91
• Revenue Growth: 8.65%
• EPS Growth: -23.00%
• Country: JP
• Employees: 3,248
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 40.13
• Shares Outstanding: 28,149,876
• 10 Day Avg. Volume: 28,650
• 30 Day Avg. Volume: 32,220
• PEG Ratio: 3.21
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 38.94
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥3,740.00 ▲(9.04% Upside)

The overall stock score of 71 reflects strong financial performance and attractive valuation, offset by neutral technical indicators. The company's robust profitability and low leverage are significant strengths, while the lack of strong market momentum and slowing revenue growth are potential concerns.

Positive Factors

Strong Financial Health

The company's low debt levels and strong profitability indicate robust financial health, providing stability and resilience against economic fluctuations.

Cash Generation Ability

A high operating cash flow relative to net income suggests efficient cash generation, supporting ongoing operations and potential reinvestment in growth opportunities.

Market Position in Automation

Specialization in automation and control systems positions the company well in growing industries like robotics and precision engineering, enhancing long-term market opportunities.

Negative Factors

Slowing Revenue Growth

A deceleration in revenue growth could indicate market saturation or increased competition, potentially impacting future earnings expansion if not addressed.

Volatility in Free Cash Flow

Fluctuations in free cash flow can create uncertainty in funding for new projects and dividends, which may affect long-term strategic planning and investor confidence.

Decreasing Total Assets

A decline in total assets and equity suggests potential asset management issues, which could affect the company's ability to leverage its balance sheet for growth.

SHIBUYA KOGYO CO LTD Business Overview & Revenue Model

Company Description

SHIBUYA KOGYO CO LTD (6340) is a Japanese company specializing in the manufacturing and development of precision machinery and equipment, primarily focusing on industrial automation and control systems. The company's core products include various types of industrial robots, machine tools, and other automated systems designed to enhance productivity and efficiency in manufacturing environments. Operating in the sectors of robotics, automation, and precision engineering, SHIBUYA KOGYO serves a diverse range of industries, including automotive, electronics, and consumer goods.

How the Company Makes Money

SHIBUYA KOGYO generates revenue through the sale of its precision machinery and automated systems, which are tailored to meet the specific needs of various industries. Key revenue streams include direct sales of industrial robots and automation equipment, as well as after-sales services such as maintenance and support. The company also engages in research and development to innovate and improve its product offerings, often resulting in new technologies that can be monetized. Significant partnerships with other technology firms and manufacturers enhance SHIBUYA KOGYO's market reach and capabilities, contributing to its earnings through collaborative projects and joint ventures.

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	129.02B	129.02B	115.43B	97.84B	96.22B	103.97B
Gross Profit	25.21B	25.21B	24.08B	18.20B	23.62B	22.87B
EBITDA	17.19B	17.20B	16.75B	11.35B	16.10B	15.21B
Net Income	10.05B	10.05B	9.78B	5.93B	9.26B	8.83B
Balance Sheet
Total Assets	159.43B	159.43B	161.90B	142.43B	136.98B	132.45B
Cash, Cash Equivalents and Short-Term Investments	45.58B	45.58B	47.20B	42.95B	42.08B	35.55B
Total Debt	3.70B	3.70B	4.60B	5.70B	2.53B	3.64B
Total Liabilities	51.49B	51.49B	60.88B	52.25B	51.56B	55.51B
Stockholders Equity	107.92B	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: Positive
• Last Price: 3430.00
• 50DMA: Positive
• 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:6340, the sentiment is Positive. The current price of 3430 is above the 20-day moving average (MA) of 3381.75, above the 50-day MA of 3369.90, and above the 200-day MA of 3305.16, indicating a bullish trend. The MACD of 20.34 indicates Negative momentum. The RSI at 55.08 is Neutral, neither overbought nor oversold. The STOCH value of 49.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	¥120.75B	8.43	―	2.92%	7.64%	5.37%
6455	78 Outperform	¥125.60B	11.72	―	2.25%	12.64%	34.19%
6340	71 Outperform	¥94.90B	10.73	―	2.62%	8.65%	-23.00%
6486	69 Neutral	¥137.50B	18.31	―	3.93%	1.70%	18.50%
6284	68 Neutral	¥89.85B	11.89	―	3.26%	18.70%	33.93%
6490	67 Neutral	¥105.57B	12.27	―	2.71%	-2.46%	-10.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

SHIBUYA KOGYO CO LTD Corporate Events

Shibuya Corporation Reports Decrease in Quarterly Profits Despite Sales Growth

Shibuya Corporation reported a decrease in profits for the first quarter of fiscal year 2026, despite an increase in net sales. The company’s operating profit, ordinary profit, and profit attributable to owners of the parent all saw significant declines compared to the previous year, indicating potential challenges in maintaining profitability. The financial forecast for the entire fiscal year anticipates modest growth in net sales but a continued decline in profits, suggesting ongoing operational and market pressures.