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

• Market Cap: ¥3.86B
• Dividend Yield: 2.25%
• Average Volume (3M): 45.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: -2.80%
• EPS Growth: -129.64%
• Country: JP
• Employees: 448
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -9.77
• 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: 60 Neutral
• Price Target: ¥916.00 ▲(38.37% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is held back primarily by weakening financial performance (declining margins, negative net profitability, and sharply lower free cash flow). This is partly offset by strong technical momentum with price above key moving averages and a positive MACD. Valuation remains a risk due to the negative P/E and only a modest dividend yield.

Positive Factors

Stable balance sheet

Low leverage and a mid-40s equity ratio provide a durable financial buffer. Manageable debt reduces refinancing and interest-rate risk, preserving capacity for capex and R&D investment over the medium term and supporting resilience through cyclical industry swings.

Specialized imaging niche

A focused business model in imaging and inspection for semiconductors creates high technical barriers and recurring service opportunities. Specialization supports long sales cycles, sticky customer relationships, and differentiated product value that can sustain margins over multiple quarters.

Positive cash conversion ratio

Operating cash flow remains positive relative to reported earnings, indicating underlying cash generation ability. That conversion provides a foundation for funding operations and R&D internally, limiting immediate external financing needs despite recent weakening in absolute FCF.

Negative Factors

Declining profitability

A swing to a negative net margin reflects structural pressure on pricing, costs, or product mix. Persistent negative profitability erodes retained earnings, limits reinvestment capacity, and undermines the company's ability to sustain R&D and market positioning over the medium term if not reversed.

Revenue contraction

Year-over-year revenue decline signals weakening demand or market share loss, harming scale economics and reducing leverage to absorb fixed costs. Sustained top-line contraction would impair margin recovery efforts and restrict funding for strategic initiatives over the coming quarters.

Free cash flow weakness

A near 47% drop in free cash flow materially reduces financial flexibility. Lower FCF constrains capital allocation for capex, dividends, and R&D, increasing reliance on external financing or cost cuts, which could have lasting negative effects on growth and competitiveness.

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

Overall fundamentals are pressured by declining profitability and weaker cash generation. The income statement is the key drag (net margin -2.24%, revenue -8.12% YoY, lower gross/EBITDA margins), while the balance sheet remains moderately stable (debt-to-equity 0.28, equity ratio 45.65%). Cash flow is also weakening with free cash flow down 46.88% YoY.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Neutral
• Last Price: 662.00
• 50DMA: Positive
• 100DMA: Positive
• 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:6614, the sentiment is Neutral. The current price of 662 is below the 20-day moving average (MA) of 930.55, below the 50-day MA of 800.72, and below the 200-day MA of 822.40, indicating a neutral trend. The MACD of 20.55 indicates Positive momentum. The RSI at 49.15 is Neutral, neither overbought nor oversold. The STOCH value of 13.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	66 Neutral	¥90.88B	26.44	―	1.85%	3.60%	-17.45%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6614	60 Neutral	¥3.86B	-39.33	―	2.25%	-2.80%	-129.64%
6613	56 Neutral	¥32.53B	-95.45	―	―	18.18%	56.08%
6656	55 Neutral	¥2.50B	-6.78	―	―	-36.20%	-1972.83%
6513	50 Neutral	¥6.85B	-4.42	―	3.81%	-3.33%	5.51%
6616	45 Neutral	¥19.11B	-12.61	―	3.98%	-6.84%	50.71%