Shindengen Electric Mfg Co Ltd (6844) AI Stock Analysis

• Market Cap: ¥35.51B
• Dividend Yield: 1.95%
• Average Volume (3M): 45.43K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 1.08
• Revenue Growth: 6.10%
• EPS Growth: N/A
• Country: JP
• Employees: 5,276
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 94.78
• Shares Outstanding: 10,338,884
• 10 Day Avg. Volume: 48,200
• 30 Day Avg. Volume: 45,433
• PEG Ratio: -0.04
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -3.07
• 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: 58 Neutral
• Price Target: ¥3,557.00 ▲(5.86% Upside)

The overall stock score is primarily influenced by strong technical analysis indicators, suggesting bullish momentum. However, financial performance and valuation concerns, particularly negative profitability and cash flow issues, weigh heavily on the score. The absence of earnings call insights and corporate events leaves these areas unaddressed in the evaluation.

Positive Factors

Revenue Growth

The 9% increase in net sales indicates strong demand and effective market strategies, suggesting potential for sustained revenue growth.

Strategic Expansion

The acquisition enhances Shindengen's product lineup and R&D capabilities, positioning it for growth in the power electronics market.

Market Position

Robust sales in key markets like ASEAN strengthen Shindengen's competitive position and support long-term growth prospects.

Negative Factors

Profitability Challenges

Worsening net profit margins indicate operational inefficiencies and could hinder long-term profitability if not addressed.

Cash Flow Issues

Negative cash flow growth highlights inefficiencies in cash management, potentially impacting the company's ability to invest in growth.

Operational Inefficiencies

Low margins suggest operational inefficiencies that could affect competitiveness and require strategic improvements for sustainability.

Shindengen Electric Mfg Co Ltd Business Overview & Revenue Model

Company Description

Shindengen Electric Manufacturing Co., Ltd. manufactures and sells semiconductors, electric equipment, and power supply products in Japan, Indonesia, Vietnam, other Asian countries, and internationally. It operates in three segments: Device Business, Car Electronics Business, and Energy System Energy Business. The Device Business segment produces bridge diodes, high-speed rectifier diodes, thyristors, SIDACs, power MOSFETs, power ICs, power modules, and other for use in four-wheel vehicles, factories, air conditioners, lighting, etc. The Car Electronics Business segment offers motorcycle products, four-wheel vehicle products, and general purpose inverters for motorcycles, four-wheel vehicles, and generators. The Energy System Business segment manufactures power conditioners for photovoltaic generators, power storage systems, recharging stands for electric vehicles, and power supplies for information and communication equipment. The company was founded in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Shindengen Electric Mfg Co Ltd generates revenue through the sale of its core products, which include power supply units and semiconductor devices. The company benefits from multiple revenue streams, including direct sales to manufacturers in the automotive and industrial sectors, as well as partnerships with major technology firms for the development of specialized electronic components. Additionally, Shindengen leverages its expertise in power electronics to provide tailored solutions that meet the specific needs of clients, thereby enhancing customer loyalty and driving repeat business. The demand for energy-efficient and high-performance electronic components further supports its revenue growth, particularly in sectors that require advanced technology, such as electric vehicles and renewable energy.

Shindengen Electric Mfg Co Ltd Financial Statement Overview

Summary

Shindengen Electric Mfg Co Ltd faces financial challenges, with negative profitability and cash flow issues despite moderate revenue growth. The company has a stable balance sheet with acceptable leverage, but operational inefficiencies and cash flow management remain concerns. The financial health is under pressure, requiring strategic improvements to enhance profitability and operational efficiency.

Income Statement

The company has experienced inconsistent revenue growth, with a slight increase of 3.49% from 2024 to 2025. However, it has negative net profit margins, with a worsening trend from -0.70% in 2024 to -2.30% in 2025, indicating profitability challenges. The gross profit margin for 2025 is 13.56%, slightly below industry standards. EBIT and EBITDA margins are also low, demonstrating operational inefficiencies.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.61 in 2025, showing balanced leverage. However, the return on equity is negative, reflecting poor profitability on shareholders' investments. The equity ratio stands at 48.47%, indicating a stable capital structure with a fair portion of assets financed by equity.

Cash Flow

The cash flow statement reveals negative free cash flow growth, highlighting cash management issues, with free cash flow deteriorating significantly from 2024. The operating cash flow to net income ratio is unfavorably negative, suggesting inefficiencies in converting earnings to cash. The free cash flow to net income ratio also indicates challenges in generating cash returns from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	108.06B	105.83B	102.26B	101.01B	92.17B	80.44B
Gross Profit	15.58B	14.35B	15.05B	17.79B	18.64B	11.42B
EBITDA	6.07B	4.00B	7.32B	10.04B	12.62B	426.00M
Net Income	-1.21B	-2.44B	-712.00M	1.64B	5.90B	-5.56B
Balance Sheet
Total Assets	131.18B	136.50B	144.67B	138.09B	135.04B	127.81B
Cash, Cash Equivalents and Short-Term Investments	22.08B	20.40B	26.34B	25.15B	29.61B	26.65B
Total Debt	38.32B	40.28B	38.90B	37.53B	39.88B	38.55B
Total Liabilities	65.31B	70.35B	73.75B	75.55B	77.81B	78.39B
Stockholders Equity	65.87B	66.14B	70.92B	62.54B	57.23B	49.41B
Cash Flow
Free Cash Flow	0.00	-6.80B	-2.24B	-2.18B	-796.00M	-10.00B
Operating Cash Flow	0.00	-2.18B	2.21B	2.74B	8.29B	-3.62B
Investing Cash Flow	0.00	-4.53B	-1.78B	-4.09B	-7.91B	-5.67B
Financing Cash Flow	0.00	-186.00M	-252.00M	-3.55B	1.27B	9.94B

Shindengen Electric Mfg Co Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3360.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6844, the sentiment is Positive. The current price of 3360 is above the 20-day moving average (MA) of 3335.75, above the 50-day MA of 3271.36, and above the 200-day MA of 2702.38, indicating a bullish trend. The MACD of 43.93 indicates Negative momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 71.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6844.

Shindengen Electric Mfg Co Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6850	80 Outperform	¥24.54B	12.89	―	2.89%	6.15%	2.98%
6800	79 Outperform	¥51.10B	17.12	―	2.20%	4.75%	164.54%
6848	73 Outperform	¥16.96B	16.53	―	2.59%	1.66%	-12.21%
6824	69 Neutral	¥50.98B	12.51	―	1.12%	14.84%	7.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6844	58 Neutral	¥35.51B	32.83	―	1.95%	6.10%	―
6864	51 Neutral	¥8.06B	-397.73	―	2.85%	10.27%	-106.32%

Shindengen Electric Mfg Co Ltd Corporate Events

Shindengen Completes Acquisition of Kyocera Power Device Business to Boost Growth

Shindengen Electric Manufacturing has completed the acquisition of all shares in a newly established power device business company that took over Kyocera Corporation’s power equipment operations, in line with its mid-term growth strategy emphasizing M&A and capital efficiency. The new subsidiary, renamed Hadano Shindengen Co., Ltd. and based in Kanagawa Prefecture, will manufacture power semiconductor products centered on silicon diodes, enabling Shindengen to rapidly expand its power device product lineup, advance R&D, and pursue market share gains and stronger competitiveness, backed by an approximately ¥2.5 billion cash transaction with Kyocera as the counterparty.

The most recent analyst rating on (JP:6844) stock is a Hold with a Yen3557.00 price target. To see the full list of analyst forecasts on Shindengen Electric Mfg Co Ltd stock, see the JP:6844 Stock Forecast page.

Shindengen Electric Reports Extraordinary Income from Securities Sale

Shindengen Electric Manufacturing Co., Ltd. announced the sale of a portion of its investment securities, resulting in an extraordinary income of 2,461 million yen. This move aligns with the company’s strategy to reduce strategic shareholdings and improve asset efficiency, and the gain will be recorded in the financial statements for the nine months ending December 31, 2025.

The most recent analyst rating on (JP:6844) stock is a Hold with a Yen3557.00 price target. To see the full list of analyst forecasts on Shindengen Electric Mfg Co Ltd stock, see the JP:6844 Stock Forecast page.

Shindengen Electric to Boost Income with Strategic Securities Sale

Shindengen Electric Mfg Co Ltd announced its decision to sell a portion of its investment securities to align with the Corporate Governance Code and enhance asset efficiency. This sale is expected to generate an extraordinary income of approximately 2.3 billion yen, which will be recorded in the company’s financial statements for the nine months ending December 31, 2025.

The most recent analyst rating on (JP:6844) stock is a Hold with a Yen3557.00 price target. To see the full list of analyst forecasts on Shindengen Electric Mfg Co Ltd stock, see the JP:6844 Stock Forecast page.

Shindengen Electric Reports Strong Financial Recovery in 2025

Shindengen Electric Manufacturing Co., Ltd reported significant financial improvements for the six months ending September 30, 2025, with a 7.3% increase in net sales and a substantial rise in operating profit by 532.3%. This positive performance indicates a strong recovery from the previous year’s losses, positioning the company favorably in the industry and providing optimistic prospects for stakeholders.

The most recent analyst rating on (JP:6844) stock is a Hold with a Yen3557.00 price target. To see the full list of analyst forecasts on Shindengen Electric Mfg Co Ltd stock, see the JP:6844 Stock Forecast page.