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

• Market Cap: ¥11.37B
• Dividend Yield: 4.44%
• Average Volume (3M): 37.75K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.86
• Revenue Growth: 1.68%
• EPS Growth: 15.79%
• Country: JP
• Employees: 1,234
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 31.72
• Shares Outstanding: 15,116,000
• 10 Day Avg. Volume: 29,050
• 30 Day Avg. Volume: 37,753
• 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: 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: 76 Outperform
• Price Target: ¥859.00 ▲(30.15% Upside)
• Action: Reiterated Date: 11/07/25
• Date: Action: Reiterated 11/07/25

Shirai Electronics scores highly due to its strong valuation metrics, indicating it is undervalued with a high dividend yield. The technical analysis supports a positive trend, although cash flow management remains a concern. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Stronger balance sheet

Debt reduction to a 0.29 D/E and a 51.03% equity ratio materially improves financial flexibility. This durable improvement lowers refinancing and solvency risk, supports capital allocation for reinvestment or dividends, and strengthens resilience through industry cycles.

Revenue and margin recovery

Sustained revenue growth together with rising gross and net margins reflects improving pricing power and operational control. These structural margin gains support sustainable profitability, underpin cash generation, and indicate capacity to absorb cost pressures over the medium term.

Positive free cash flow conversion

Near-par conversion of net income into free cash flow (FCF/net income ~0.99) shows the company can largely translate profits into spendable cash. That sustained conversion capacity supports reinvestment, debt paydown, and shareholder returns over multiple quarters.

Negative Factors

Declining operating cash flow

A year-over-year decline in operating cash flow and negative FCF growth rate signal potential pressure on core cash generation. If persistent, this undermines sustainable capex funding, dividend coverage, and debt reduction plans, reducing strategic flexibility.

Residual leverage concern

Although leverage has fallen, the history of higher indebtedness suggests potential prior reliance on debt to navigate downturns. This legacy elevates the risk of covenant sensitivity or restricted borrowing in a future stress period, limiting long-term financial optionality.

Modest net margins

A 7.07% net margin, while improved, remains modest for durable return generation. Limited margin headroom constrains the company's ability to finance growth, buffer cyclical revenue declines, or invest heavily in differentiation without pressuring returns.

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

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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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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	3.50B	3.36B	3.94B	2.64B	1.19B
Net Income	2.06B	2.08B	1.49B	2.06B	1.33B	-209.00M
Balance Sheet
Total Assets	19.46B	19.51B	19.74B	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	9.46B	11.81B	14.64B	18.24B	17.84B
Stockholders Equity	9.34B	9.93B	7.84B	5.90B	3.94B	2.32B
Cash Flow
Free Cash Flow	0.00	2.06B	2.91B	2.69B	1.68B	72.00M
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: Neutral
• Last Price: 660.00
• 50DMA: Negative
• 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 Neutral. The current price of 660 is below the 20-day moving average (MA) of 791.00, below the 50-day MA of 765.40, and below the 200-day MA of 660.23, indicating a neutral trend. The MACD of -0.62 indicates Positive momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 24.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
6806	78 Outperform	$696.38B	15.50	8.07%	2.85%	11.18%	-0.75%
6658	76 Outperform	¥11.37B	5.54	―	4.44%	1.68%	15.79%
6653	72 Outperform	¥30.17B	15.64	―	1.91%	3.14%	11.04%
6817	70 Outperform	¥37.10B	10.46	―	4.53%	-2.57%	3.43%
6908	70 Outperform	¥79.56B	10.57	―	3.05%	10.79%	12.28%
6807	64 Neutral	$157.25B	29.59	5.91%	2.39%	-3.24%	-25.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%