Shikino High-Tech CO.,LTD. (6614) AI Stock Analysis

• Market Cap: ¥3.13B
• Dividend Yield: 2.25%
• Average Volume (3M): 45.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: -2.80%
• EPS Growth: -129.64%
• Country: JP
• Employees: 448
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 5.60
• Shares Outstanding: 4,426,000
• 10 Day Avg. Volume: 101,780
• 30 Day Avg. Volume: 45,033
• PEG Ratio: 3.12
• Price to Book (P/B): 1.90
• Price to Sales (P/S): 0.72
• P/FCF Ratio: 46.51
• 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: 46 Neutral
• Price Target: ¥786.00 ▲(18.73% Upside)

The overall stock score is primarily influenced by weak financial performance and bearish technical indicators. The company's declining profitability and liquidity concerns are significant risks. Technical analysis indicates a strong downtrend, further impacting the score. The unattractive valuation due to negative earnings also weighs heavily on the overall assessment.

Positive Factors

Stable Revenue Streams

The company's diverse revenue streams and long-term contracts provide a stable income base, supporting financial stability and resilience against market fluctuations.

Partnerships and Innovation

Collaborations with research institutions enhance innovation, allowing the company to expand its product offerings and maintain a competitive edge in the market.

Manageable Debt Levels

A manageable debt-to-equity ratio indicates financial prudence, providing the company with flexibility to invest in growth opportunities without excessive leverage.

Negative Factors

Declining Profitability

Declining profitability and negative net profit margins suggest operational challenges, which could impact long-term financial health and investment capacity.

Inconsistent Revenue Growth

Inconsistent revenue growth reflects market volatility and potential demand issues, posing challenges for strategic planning and sustained business expansion.

Cash Flow Pressures

Significant declines in free cash flow and operating cash flow suggest liquidity concerns, potentially limiting the company's ability to fund operations and growth initiatives.

Shikino High-Tech CO.,LTD. Business Overview & Revenue Model

Company Description

Shikino High-Tech CO.,LTD. engages in the electronic systems, microelectronics, product development businesses. The company offers semiconductor testing equipment, which includes monitored burn-in systems, and IC and compact testers primarily for the semiconductor post-production process; and image processing cameras, camera modules, and related products for use in various applications, including vending machines, ticketing machines, arcade games, digital signages, character codes, biometrics, various information terminals, robots, and surveillance cameras, as well as FA, transport, packaging, and medical equipment. It also provides embedded cameras and related products, such as USB output camera modules, digital YUV output camera modules, NTSC output camera modules, camera lenses, and customized cameras for industrial use; cameras for shops and related solutions; and IP cores, including MIPI IP core and JPEG IP core products, as well as IoT PLC communication modules. In addition, the company manufactures and sells burn-in equipment, burn-in boards, peripheral equipment, jigs, semiconductor component inspection boards, semiconductor test programs, various electronic equipment inspection boards, dedicated measuring instruments, high-speed communication equipment, and electronic equipment, as well as offers camera and system development, LSI designs, testing solutions, burn-in solutions, DMS & EMS solutions; and burn-in equipment rentals. The company was formerly known as Shikino Electronics Co. Ltd. and changed its name to Shikino High-Tech CO.,LTD. in January 1992. Shikino High-Tech CO.,LTD. was incorporated in 1975 and is headquartered in Uozu-shi, Japan.

How the Company Makes Money

Shikino High-Tech generates revenue through multiple streams, primarily from the sales of its semiconductor products and electronic components to various industries, including consumer electronics, automotive, and telecommunications. The company benefits from long-term contracts with major industry players, which provide a stable income base. Additionally, Shikino High-Tech engages in partnerships with research institutions and technology firms to co-develop advanced technologies, further enhancing its product offerings and market reach. The company's focus on innovation and quality allows it to maintain competitive pricing and high demand for its products, contributing significantly to its overall earnings.

Shikino High-Tech CO.,LTD. Financial Statement Overview

Summary

Shikino High-Tech CO.,LTD. faces challenges in maintaining its growth trajectory and profitability, as evident from declining margins and inconsistent revenue growth. The balance sheet remains relatively stable, but cash flow pressures pose concerns for future liquidity. The company must address these operational and financial challenges to strengthen its financial health.

Income Statement

The income statement reveals a declining performance over the past year, with a negative net profit margin of -2.24% for the latest period compared to 7.18% the previous year. Revenue growth has been inconsistent, with a decrease in the latest year (-8.12%) after a rise in the previous period (9.52%). The gross profit margin has also decreased to 19.88% from 26.48%. EBIT and EBITDA margins have significantly dropped, indicating operational challenges. These trends suggest declining profitability and growth challenges.

Balance Sheet

The balance sheet shows moderate stability with a manageable debt-to-equity ratio of 0.28. However, the stockholders' equity has decreased slightly, indicating pressure on financial strength. The equity ratio is 45.65%, providing a reasonable buffer against liabilities. Overall, the balance sheet reflects a stable but slightly weakening financial position.

Cash Flow

The cash flow statement indicates a sharp decline in free cash flow by 46.88% year-over-year. Operating cash flow has decreased significantly, impacting the company's ability to generate cash internally. The operating cash flow to net income ratio is positive but lower than the previous year, suggesting a decline in cash efficiency. Overall, cash flow performance is under pressure, indicating potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.53B	6.52B	7.09B	6.48B	5.36B	4.43B
Gross Profit	1.24B	1.30B	1.88B	1.80B	1.43B	1.00B
EBITDA	-2.26M	66.47M	751.96M	724.19M	529.11M	309.97M
Net Income	-48.96M	-14.58M	509.57M	477.04M	327.48M	113.26M
Balance Sheet
Total Assets	5.49B	5.41B	5.75B	5.18B	4.09B	3.62B
Cash, Cash Equivalents and Short-Term Investments	341.98M	557.14M	508.55M	529.70M	528.64M	576.57M
Total Debt	770.07M	691.08M	585.61M	606.45M	412.28M	598.35M
Total Liabilities	3.16B	2.94B	3.21B	3.10B	2.45B	2.39B
Stockholders Equity	2.33B	2.47B	2.55B	2.08B	1.64B	1.23B
Cash Flow
Free Cash Flow	0.00	100.74M	322.00M	-157.76M	-126.41M	138.48M
Operating Cash Flow	0.00	197.32M	495.21M	60.30M	24.49M	215.47M
Investing Cash Flow	0.00	-188.35M	-357.41M	-230.27M	45.93M	-38.87M
Financing Cash Flow	0.00	39.61M	-158.96M	170.92M	-118.44M	214.99M

Shikino High-Tech CO.,LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 662.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6614, the sentiment is Positive. The current price of 662 is below the 20-day moving average (MA) of 673.15, below the 50-day MA of 696.66, and below the 200-day MA of 844.98, indicating a neutral trend. The MACD of -0.57 indicates Negative momentum. The RSI at 62.79 is Neutral, neither overbought nor oversold. The STOCH value of 89.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6614.

Shikino High-Tech CO.,LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6627	79 Outperform	¥58.68B	18.87	―	1.85%	3.60%	-17.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6513	50 Neutral	¥6.61B	-5.77	―	3.81%	-3.33%	5.51%
6656	49 Neutral	¥2.34B	-6.35	―	―	-36.20%	-1972.83%
6614	46 Neutral	¥3.13B	-37.78	―	2.25%	-2.80%	-129.64%
6616	45 Neutral	¥16.13B	-8.04	―	3.98%	-6.84%	50.71%
6613	44 Neutral	¥14.78B	-48.36	―	―	18.18%	56.08%