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SHOWA SHINKU CO., LTD. (JP:6384)
:6384
Japanese Market

SHOWA SHINKU CO., LTD. (6384) AI Stock Analysis

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JP:6384

SHOWA SHINKU CO., LTD.

(6384)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥2,029.00
▲(33.93% Upside)
Action:ReiteratedDate:02/20/26
The score is driven primarily by strong financial health (very low leverage and solid margins), tempered by weaker cash flow conversion and a recent revenue decline. Technicals show a strong uptrend, but extremely overbought momentum raises near-term pullback risk, while valuation and dividend yield remain supportive.
Positive Factors
Low leverage, strong equity base
A debt-to-equity of 0.05 and a 75% equity ratio indicate materially low financial leverage and strong capital structure. This durable strength lowers refinancing and solvency risk, preserves optionality for capex or R&D, and supports multi‑period resilience through industry cycles.
Negative Factors
Weak free cash flow conversion
Negative FCF-to-net-income (-0.07) shows the company is not reliably converting accounting profits into distributable cash. This persistent conversion gap constrains self‑funding for dividends, capex and working capital needs, raising dependence on internal working capital fixes or external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage, strong equity base
A debt-to-equity of 0.05 and a 75% equity ratio indicate materially low financial leverage and strong capital structure. This durable strength lowers refinancing and solvency risk, preserves optionality for capex or R&D, and supports multi‑period resilience through industry cycles.
Read all positive factors

SHOWA SHINKU CO., LTD. (6384) vs. iShares MSCI Japan ETF (EWJ)

SHOWA SHINKU CO., LTD. Business Overview & Revenue Model

Company Description
Showa Shinku Co., Ltd. produces and sells vacuum equipment and components for quartz devices, optical thin films, electronic devices, etc. in Japan. The company provides vacuum evaporation equipment; sputtering equipment; ion plating equipment; dr...
How the Company Makes Money
SHOWA SHINKU CO., LTD. generates revenue through the sale of its precision machinery and industrial equipment, catering to various industries including automotive and aerospace. The company’s primary revenue streams include direct sales of machine...

SHOWA SHINKU CO., LTD. Financial Statement Overview

Summary
Solid overall fundamentals supported by a very strong balance sheet (debt-to-equity 0.05; equity ratio 75.01%) and healthy profitability (gross margin 31.57%, net margin 6.63%) with improved EBIT/EBITDA margins. Offsetting factors are the noted revenue decline and weak cash conversion (free cash flow to net income -0.07).
Income Statement
75
Positive
Balance Sheet
82
Very Positive
Cash Flow
68
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue8.96B8.48B7.46B10.13B11.96B10.72B
Gross Profit2.77B2.68B2.04B2.98B3.61B3.27B
EBITDA1.04B977.59M487.88M1.30B1.99B1.59B
Net Income616.13M561.93M164.29M779.75M1.24B1.02B
Balance Sheet
Total Assets14.37B15.57B14.49B15.59B17.52B15.41B
Cash, Cash Equivalents and Short-Term Investments5.22B4.98B5.36B4.81B5.07B5.35B
Total Debt575.46M568.58M579.11M617.98M620.96M584.54M
Total Liabilities3.32B3.98B3.09B4.07B6.47B5.41B
Stockholders Equity11.04B11.59B11.40B11.52B11.06B10.01B
Cash Flow
Free Cash Flow0.00-41.96M999.30M42.17M-85.94M2.01B
Operating Cash Flow0.00178.76M1.08B211.04M113.13M2.39B
Investing Cash Flow0.00-332.01M-104.50M-169.49M-201.23M-389.71M
Financing Cash Flow0.00-444.38M-493.63M-382.69M-347.43M-381.70M

SHOWA SHINKU CO., LTD. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1515.00
Price Trends
50DMA
1719.90
Positive
100DMA
1598.03
Positive
200DMA
1491.60
Positive
Market Momentum
MACD
35.75
Positive
RSI
44.37
Neutral
STOCH
45.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6384, the sentiment is Neutral. The current price of 1515 is below the 20-day moving average (MA) of 1831.80, below the 50-day MA of 1719.90, and above the 200-day MA of 1491.60, indicating a neutral trend. The MACD of 35.75 indicates Positive momentum. The RSI at 44.37 is Neutral, neither overbought nor oversold. The STOCH value of 45.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6384.

SHOWA SHINKU CO., LTD. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥70.33B9.502.63%-6.00%-13.74%
75
Outperform
¥64.75B13.243.95%-1.67%-4.39%
73
Outperform
¥11.01B27.334.76%41.13%535.42%
72
Outperform
¥154.53B13.1910.28%2.77%2.74%7.86%
70
Outperform
¥67.96B4.093.09%6.35%-34.20%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
¥30.92B4.172.13%1.13%-66.14%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6384
SHOWA SHINKU CO., LTD.
1,787.00
444.66
33.13%
JP:6498
Kitz
1,780.00
597.23
50.49%
JP:6151
Nitto Kohki Co., Ltd.
1,652.00
-264.35
-13.79%
JP:6363
Torishima Pump Mfg.Co., Ltd.
2,647.00
493.03
22.89%
JP:6381
ANEST IWATA Corp.
1,627.00
471.50
40.80%
JP:6517
Denyo Co., Ltd.
3,540.00
1,039.48
41.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 20, 2026