Shirai Electronics Industrial Co., Ltd. (6658) AI Stock Analysis

• Market Cap: ¥9.98B
• Dividend Yield: 4.55%
• Average Volume (3M): 77.60K
• Price to Earnings (P/E): 4.8
• Beta (1Y): 0.85
• Revenue Growth: 2.22%
• EPS Growth: 28.89%
• Country: JP
• Employees: 1,234
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 22.87
• Shares Outstanding: 15,116,000
• 10 Day Avg. Volume: 78,170
• 30 Day Avg. Volume: 77,603
• PEG Ratio: 0.13
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 4.18
• 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: ¥622.00
• Price Target Upside: -5.76% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥622.00 ▼(-5.76% Downside)

Shirai Electronics presents a compelling valuation with a low P/E ratio and high dividend yield, which are the most significant factors in the score. The company also shows solid financial performance with revenue growth and improved financial stability, though cash flow management remains an area to watch. Technical analysis reflects a neutral market momentum, contributing moderately to the overall score.

Shirai Electronics Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Shirai Electronics Industrial Co., Ltd. (6658) is a prominent player in the electronics manufacturing sector, specializing in the production of high-quality electronic components and devices. The company primarily operates in the fields of consumer electronics, industrial automation, and telecommunications, offering a diverse range of products including circuit boards, sensors, and power supplies. Shirai Electronics is committed to innovation and sustainability, ensuring its solutions meet the evolving demands of the global market.

How the Company Makes Money

Shirai Electronics generates revenue through multiple key streams, primarily from the sale of its electronic components and systems to various industries such as consumer electronics, automotive, and industrial automation. The company's revenue model is based on direct sales to manufacturers and distributors, as well as long-term contracts with major corporations for bulk supply agreements. Additionally, Shirai Electronics benefits from strategic partnerships with leading technology firms, which enhance its product offerings and market reach. The company also invests in research and development to create innovative products that cater to emerging technologies, thereby increasing its competitive edge and driving sales.

Shirai Electronics Industrial Co., Ltd. Financial Statement Overview

Summary

Shirai Electronics has shown commendable recovery and growth in revenue and profitability. The balance sheet reflects a healthier leverage position, enhancing financial stability. However, cash flow management poses some concerns, particularly in maintaining growth in free cash flow.

Income Statement

Shirai Electronics has demonstrated consistent revenue growth with a notable recovery from 2021. The gross profit margin has strengthened over the past years, now sitting at 20.25% for 2025, along with a solid net profit margin improvement to 7.07%. The EBIT and EBITDA margins have also improved, indicating effective cost management and operational efficiency.

Balance Sheet

The company has improved its financial structure, reducing debt significantly with a current debt-to-equity ratio of 0.29. Stockholders' equity has grown, boosting the equity ratio to 51.03%. This indicates greater financial stability, although past high leverage remains a consideration.

Cash Flow

Though there is a decline in operating cash flow compared to the previous year, the company maintains a positive free cash flow, with a recent free cash flow to net income ratio of 0.99. The free cash flow growth rate is negative, highlighting potential issues in sustaining future cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.47B	29.34B	28.83B	32.86B	29.40B	22.36B
Gross Profit	5.92B	5.94B	5.61B	6.14B	4.88B	3.34B
EBITDA	3.58B	3.60B	3.36B	3.79B	2.66B	1.16B
Net Income	2.06B	2.08B	1.49B	2.06B	1.33B	-208.00M
Balance Sheet
Total Assets	19.46B	19.45B	19.70B	20.63B	22.34B	20.32B
Cash, Cash Equivalents and Short-Term Investments	1.48B	907.00M	1.99B	1.20B	2.15B	2.52B
Total Debt	3.62B	2.89B	5.41B	7.68B	10.60B	11.93B
Total Liabilities	10.01B	9.40B	11.77B	14.65B	18.24B	17.85B
Stockholders Equity	9.34B	9.93B	7.84B	5.90B	3.94B	2.32B
Cash Flow
Free Cash Flow	0.00	2.06B	2.89B	2.69B	1.66B	29.00M
Operating Cash Flow	0.00	2.61B	3.17B	3.14B	2.52B	1.28B
Investing Cash Flow	0.00	-163.00M	6.00M	-430.00M	-620.00M	-1.12B
Financing Cash Flow	0.00	-3.24B	-2.36B	-3.80B	-2.37B	474.00M

Shirai Electronics Industrial Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 660.00
• 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:6658, the sentiment is Positive. The current price of 660 is below the 20-day moving average (MA) of 662.25, above the 50-day MA of 633.04, and above the 200-day MA of 582.74, indicating a neutral trend. The MACD of 10.47 indicates Positive momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 50.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6658.

Shirai Electronics Industrial Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6658	73 Outperform	¥9.98B	4.84	―	4.55%	2.22%	28.89%
6864	68 Neutral	¥9.48B	26.10	―	2.37%	4.03%	-2.88%
6772	65 Neutral	¥11.09B	18.66	―	1.95%	1.49%	-26.82%
6919	65 Neutral	¥9.99B	54.14	―	5.76%	-2.65%	-74.99%
6928	64 Neutral	¥11.05B	16.04	―	4.32%	8.68%	859.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6615	57 Neutral	€7.61B	5.36	-17.13%	3.70%	-2.78%	-253.13%