SHIBUYA KOGYO CO LTD (6340) AI Stock Analysis

• Market Cap: ¥94.90B
• Dividend Yield: 2.63%
• Average Volume (3M): 32.22K
• 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: 72
• Industry: Industrial - Machinery
• EPS (TTM): 88.20
• Shares Outstanding: 28,149,876
• 10 Day Avg. Volume: 28,650
• 30 Day Avg. Volume: 32,220
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥3,740.00 ▲(9.20% 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.

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	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: 3425.00
• 50DMA: Negative
• 100DMA: Negative
• 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 3425 is below the 20-day moving average (MA) of 3437.50, below the 50-day MA of 3467.50, and above the 200-day MA of 3333.91, indicating a neutral trend. The MACD of -5.12 indicates Positive momentum. The RSI at 48.38 is Neutral, neither overbought nor oversold. The STOCH value of 18.24 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	―	¥109.28B	7.86	―	3.23%	7.65%	8.12%
6490	―	¥114.08B	13.53	―	2.48%	-0.98%	-18.48%
6455	―	¥106.78B	11.08	―	2.49%	12.25%	32.16%
6284	―	¥98.19B	13.06	―	2.92%	15.99%	32.43%
6340	―	¥94.90B	9.36	―	2.63%	11.77%	2.77%
6486	―	¥134.55B	23.64	―	3.90%	>-0.01%	-26.82%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%