SHIBUYA KOGYO CO LTD (6340) AI Stock Analysis

• Market Cap: ¥103.06B
• Dividend Yield: 2.64%
• Average Volume (3M): 32.22K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.84
• Revenue Growth: 8.65%
• EPS Growth: -23.00%
• Country: JP
• Employees: 3,248
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ¥4,276.00 ▲(24.30% Upside)
• Action: Reiterated Date: 10/30/25
• Date: Action: Reiterated 10/30/25

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

Low Leverage / Strong Balance Sheet

Extremely low debt and a high equity ratio give the company durable financial flexibility. This reduces refinancing risk, supports capital spending, M&A optionality, and resilience through industry cycles, enabling long-term investment in automation and service capabilities.

Robust Profitability & Margins

Healthy gross, EBIT and EBITDA margins indicate operational efficiency and likely pricing power in machinery and services. Sustained margins support reinvestment in engineering, after-sales services and product development, underpinning durable cash generation and competitive positioning.

Strong Operating Cash Generation

High operating cash conversion and a marked improvement in free cash flow provide lasting capacity to fund maintenance capex, service network expansion and dividends without relying on debt, strengthening long-term financial independence and capital allocation flexibility.

Negative Factors

Slowing Revenue Growth

A decelerating top line limits the company's ability to leverage fixed costs and expand absolute profit dollars over time. If the slowdown persists, it could constrain R&D, service expansion and market share gains, pressuring long-term growth prospects and strategic initiatives.

Weak Free Cash Flow Conversion / Volatility

Low FCF-to-net-income and historical volatility indicate parts of earnings may not convert reliably to spendable cash. That can constrain sustained dividend increases, share buybacks or funding of larger turnkey projects without using cash reserves or new financing.

Declining EPS Trend

A sharp negative EPS growth rate signals pressure on per-share profitability, which may reflect margin compression, one-offs or operational headwinds. Persistent EPS declines reduce reinvestment capacity per share and weaken long-term shareholder return prospects.

SHIBUYA KOGYO CO LTD Business Overview & Revenue Model

Company Description

Shibuya Corporation manufactures and sells packaging and mechatronics systems in Japan and internationally. The company offers bottling systems for filling mineral water, sake and distilled spirits, liquors, beers, dairy and seasoning products, cooking oils, cosmetics, personal care and chemical products, and health and nutritional drinks. It also provides packaging systems, such as casers and uncasers, wrap-around casers, cartoning machines, case formers, case sealing systems, multi packers, cup filling/seal systems, cup and tray sealers, pouch filling/sealing machines, gusset packaging machines, corrugate sheet systems, container folding assembly systems, container folding assemblies, polyethylene film applicators, poly bag sealing machines, and other packaging systems. In addition, the company offers regenerative medicine manufacturing systems; heated steam cooking and ultra-high pressure processing systems; fiber laser cutting, CO2 laser cutting, YAG laser welding, laser ablation, laser/water cutting, water jet cutting, and other cutting machines, as well as hydraulic presses; and medical equipment, such as UV light treatment, skin picture analyzing, blood test pre-treatment, dialysis, and medical laser systems, as well as beauty equipment. Further, it provides cleaning and environmental equipment systems; and semiconductor/battery manufacturing systems comprising solder ball mounter machines, high-accuracy bonders for optical communication and devices, flip chip bonders/high-accuracy die bonders, high-accuracy bonders for image sensors, wire bonders, LED inspection/sorting/taping machines, and 3D vision inspection systems. Additionally, it offers agricultural equipment, such as sorting and grading systems; production management and engineering services; and pharmaceutical manufacturing systems, such as isolator, sterilization/decontamination, filling, and other systems. Shibuya Corporation was founded in 1931 and is headquartered in Kanazawa, Japan.

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

SHIBUYA KOGYO CO LTD Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3440.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 3440 is below the 20-day moving average (MA) of 3654.00, below the 50-day MA of 3551.02, and above the 200-day MA of 3381.52, indicating a bullish trend. The MACD of 29.87 indicates Positive momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 66.69 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	80 Outperform	¥159.55B	10.88	―	2.94%	7.64%	5.37%
6455	79 Outperform	¥131.87B	12.26	―	2.25%	12.64%	34.19%
6284	77 Outperform	¥135.51B	17.51	―	3.24%	18.70%	33.93%
6490	76 Outperform	¥200.97B	22.58	―	2.50%	-2.46%	-10.72%
6340	71 Outperform	¥103.06B	11.48	―	2.64%	8.65%	-23.00%
6486	70 Outperform	¥168.25B	20.47	―	3.88%	1.70%	18.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

SHIBUYA KOGYO CO LTD Corporate Events

Shibuya Corp Posts Profit Drop but Holds Forecast and Dividend for FY2026

Shibuya Corporation reported second-quarter fiscal 2026 consolidated net sales of ¥63.06 billion, up 0.9% year on year, while operating profit fell 31.4% to ¥5.06 billion and profit attributable to owners of parent declined 21.1% to ¥4.02 billion. Despite the profit squeeze, total assets edged up to ¥160.31 billion, equity ratio improved to 69.6%, and net assets per share rose, signaling a stronger balance sheet.

The company kept its full-year forecast unchanged, projecting net sales of ¥133.0 billion and a 7.5% decline in full-year profit, and also maintained its dividend plan totaling ¥95 per share, including an interim dividend of ¥47.50. The combination of resilient sales, lower profitability, and a steady dividend policy suggests Shibuya is prioritizing shareholder returns while navigating margin pressures that could influence its competitive positioning and capital allocation in the current fiscal year.

The most recent analyst rating on (JP:6340) stock is a Hold with a Yen4172.00 price target. To see the full list of analyst forecasts on SHIBUYA KOGYO CO LTD stock, see the JP:6340 Stock Forecast page.