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Shibaura Electronics Co., Ltd. (JP:6957)
:6957
Japanese Market
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Shibaura Electronics Co., Ltd. (6957) AI Stock Analysis

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JP:6957

Shibaura Electronics Co., Ltd.

(6957)

Rating:67Neutral
Price Target:
¥6,966.00
▲(9.18% Upside)
Shibaura Electronics Co., Ltd. has a solid financial foundation with strong revenue growth and profitability. However, the high P/E ratio suggests overvaluation, and the overbought RSI indicates potential for a price correction. The decline in free cash flow is a concern that could impact future liquidity.

Shibaura Electronics Co., Ltd. (6957) vs. iShares MSCI Japan ETF (EWJ)

Shibaura Electronics Co., Ltd. Business Overview & Revenue Model

Company DescriptionShibaura Electronics Co., Ltd. is a Japanese company primarily engaged in the manufacturing and sale of electronic components and devices. The company specializes in thermistor temperature sensors, which are crucial for a wide range of applications within the automotive, industrial, and consumer electronics sectors. Established in 1953, Shibaura Electronics has built a reputation for precision and reliability in temperature sensing technology, catering to both domestic and international markets.
How the Company Makes MoneyShibaura Electronics Co., Ltd. generates revenue through the production and sale of its thermistor temperature sensors. These sensors are integral components in various industries, used to measure and control temperature with high accuracy. The company sells its products directly to manufacturers in the automotive sector, where temperature regulation is critical for engine management and safety systems. Additionally, it supplies to industrial clients who require precise temperature monitoring for manufacturing processes, as well as to consumer electronics firms for use in devices like air conditioners and refrigerators. Shibaura Electronics benefits from long-term contracts and partnerships with major manufacturers, ensuring stable revenue streams and growth opportunities. The company's focus on research and development also allows it to innovate and maintain competitiveness in the global market.

Shibaura Electronics Co., Ltd. Financial Statement Overview

Summary
Shibaura Electronics Co., Ltd. demonstrates robust financial performance with strong revenue growth and profitability. The balance sheet shows minimal debt and high equity, indicating financial stability. However, a significant decline in free cash flow suggests potential risks to liquidity that need to be addressed.
Income Statement
85
Very Positive
Shibaura Electronics Co., Ltd. demonstrates strong revenue growth with a 5.01% increase in the latest year, alongside robust profitability. The gross profit margin at 28.03% and net profit margin at 11.02% reflect efficient cost management and healthy bottom-line performance. EBIT and EBITDA margins stand at 15.99% and 20.66% respectively, indicating solid operational efficiency. However, a slight decrease in net income from the previous year suggests potential challenges.
Balance Sheet
78
Positive
The company's balance sheet is strong, with a low debt-to-equity ratio of 0.008, indicating limited leverage. The return on equity (ROE) is healthy at 10.16%, showcasing effective use of shareholder capital. The equity ratio is impressive at 82.83%, reflecting a high proportion of equity financing, which enhances financial stability. However, a slight decline in cash reserves may require monitoring.
Cash Flow
70
Positive
Shibaura Electronics has experienced a decline in free cash flow, down 49.67% from the previous year, which could impact future investments. The operating cash flow to net income ratio is robust at 1.49, indicating strong cash generation from operations. However, the decrease in free cash flow suggests potential constraints on liquidity management.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue34.03B32.40B33.19B30.61B25.18B
Gross Profit9.54B9.06B9.18B9.01B6.23B
EBITDA7.03B7.05B6.99B6.92B4.87B
Net Income3.75B3.82B3.83B3.65B2.23B
Balance Sheet
Total Assets44.54B43.57B40.93B40.60B37.27B
Cash, Cash Equivalents and Short-Term Investments12.46B13.54B11.78B12.80B11.90B
Total Debt297.00M897.00M2.00B3.35B4.70B
Total Liabilities7.61B8.41B9.15B11.89B11.80B
Stockholders Equity36.90B35.12B31.74B28.67B25.43B
Cash Flow
Free Cash Flow2.15B4.28B1.69B2.83B3.34B
Operating Cash Flow5.58B6.09B3.41B3.52B3.97B
Investing Cash Flow-3.41B-1.86B-1.62B-796.21M-552.04M
Financing Cash Flow-3.57B-2.64B-3.05B-2.14B1.32B

Shibaura Electronics Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6380.00
Price Trends
50DMA
6030.20
Positive
100DMA
5739.16
Positive
200DMA
4642.54
Positive
Market Momentum
MACD
59.91
Negative
RSI
73.56
Negative
STOCH
88.21
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6957, the sentiment is Positive. The current price of 6380 is above the 20-day moving average (MA) of 6058.50, above the 50-day MA of 6030.20, and above the 200-day MA of 4642.54, indicating a bullish trend. The MACD of 59.91 indicates Negative momentum. The RSI at 73.56 is Negative, neither overbought nor oversold. The STOCH value of 88.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6957.

Shibaura Electronics Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥157.39B11.50
2.20%9.11%114.88%
73
Outperform
¥128.80B11.73
2.86%21.11%17.88%
73
Outperform
¥87.51B16.56
2.71%-2.07%-18.83%
68
Neutral
¥82.70B13.99
3.27%7.11%7.49%
67
Neutral
¥99.31B32.88
2.34%4.48%-39.40%
67
Neutral
¥66.36B22.44
3.49%6.60%-36.94%
61
Neutral
$35.97B6.65-7.26%1.99%8.60%-7.54%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6957
Shibaura Electronics Co., Ltd.
6,410.00
3,325.28
107.80%
JP:6590
Shibaura Mechatronics Corp.
9,630.00
1,975.07
25.80%
JP:6814
Furuno Electric Co., Ltd.
5,310.00
3,612.31
212.78%
JP:6866
Hioki E.E.Corporation
6,220.00
-1,207.52
-16.26%
JP:6908
IRISO Electronics Co., Ltd.
2,882.00
240.56
9.11%
JP:6996
Nichicon Corporation
1,300.00
344.48
36.05%

Shibaura Electronics Co., Ltd. Corporate Events

Shibaura Electronics Maintains Support for Minebea Mitsumi Tender Offer Amidst Competing Bid
Aug 15, 2025

Shibaura Electronics Co., Ltd. announced changes to its previous recommendation regarding a tender offer for its shares by Minebea Mitsumi, Inc. The company has decided to maintain its support for the Minebea Mitsumi Tender Offer, which has been raised to 6,200 yen, while leaving the decision to tender up to individual shareholders. This decision comes amidst a competing offer from YAGEO Electronics Japan LLC, which has not yet secured necessary approvals. The company’s board believes the Minebea Mitsumi offer is reasonable and beneficial for minority shareholders, reflecting a strategic move to enhance corporate value.

Shibaura Electronics Announces Extension of Minebea Mitsumi Tender Offer Period
Jul 28, 2025

Shibaura Electronics Co., Ltd. announced changes to their previous notice regarding the tender offer for the company’s shares by Minebea Mitsumi, Inc. The tender offer period has been extended to August 1, 2025, providing shareholders with additional time to decide on their participation. This extension reflects Minebea Mitsumi’s consideration of the current tendering situation and uncertainties surrounding the YAGEO Electronics Japan’s tender offer, which has not yet received necessary approvals. The decision aims to ensure fairness and provide ample opportunity for shareholders to make informed decisions.

Shibaura Electronics Extends Tender Offer Period Amid Strategic Adjustments
Jul 17, 2025

Shibaura Electronics Co., Ltd. announced changes to its previous notice regarding the tender offer for its shares by Minebea Mitsumi, Inc. The tender offer period has been extended to provide shareholders with more time to decide on their participation. This decision reflects the company’s strategic approach to ensure fairness and transparency in the tender process, considering the current market conditions and regulatory requirements.

Shibaura Electronics Extends Tender Offer Period Amid Regulatory Delays
Jul 11, 2025

Shibaura Electronics Co., Ltd. announced changes to its earlier expression of support for a tender offer by Minebea Mitsumi, Inc. The tender offer period has been extended until July 16, 2025, providing shareholders with additional time to decide on their participation. This extension is due to the ongoing situation with YAGEO Electronics Japan’s tender offer, which has been delayed due to pending approvals under the Foreign Exchange Act. The extension aims to ensure fairness and provide shareholders ample opportunity to make informed decisions.

YAGEO Amends Tender Offer for Shibaura Electronics
Jul 3, 2025

YAGEO Corporation has issued an amendment to its tender offer for Shibaura Electronics Co., Ltd., highlighting necessary regulatory procedures in Japan, Taiwan, Germany, and Austria. The amendment reflects ongoing consultations with Japanese authorities, indicating progress in obtaining the required approvals for the acquisition, which is crucial for the transaction’s completion.

YAGEO Amends Tender Offer for Shibaura Electronics
Jul 2, 2025

YAGEO Corporation has announced amendments to its tender offer for Shibaura Electronics Co., Ltd. The changes involve updates to the terms and conditions of the offer, reflecting strategic adjustments in YAGEO’s acquisition approach. This development could impact Shibaura’s market positioning and influence stakeholder decisions regarding the tender offer.

Shibaura Electronics Announces Extension of Tender Offer Period by MinebeaMitsumi
Jun 27, 2025

Shibaura Electronics Co., Ltd. announced changes to its previous notice regarding the tender offer for its shares by MinebeaMitsumi, Inc. The tender offer period has been extended to July 11, 2025, allowing more time for stakeholders to respond. This extension reflects MinebeaMitsumi’s strategic adjustments following the submission of their Securities Report, potentially impacting shareholder decisions and company restructuring plans.

Shibaura Electronics Extends Tender Offer Period for Shareholders
Jun 17, 2025

Shibaura Electronics Co., Ltd. announced changes to its previous notice supporting the tender offer for its shares by MinebeaMitsumi, Inc. The tender offer period has been extended to provide shareholders with more time to decide on their participation, reflecting MinebeaMitsumi’s commitment to ensuring fairness and ample opportunity for shareholder decision-making.

YAGEO Responds to Shibaura’s Inquiries on Tender Offer
Jun 13, 2025

YAGEO Corporation has submitted a response to additional inquiries from Shibaura Electronics regarding a tender offer initiated by YAGEO to acquire Shibaura. This development follows a series of communications and regulatory filings related to the acquisition process, highlighting the ongoing negotiations and compliance with financial regulations.

Shibaura Electronics Evaluates Tender Offers Amid Regulatory Concerns
Jun 13, 2025

Shibaura Electronics Co., Ltd. has received a response from YAGEO Corporation regarding additional inquiries related to YAGEO’s tender offer for Shibaura’s shares. The company’s board has maintained a supportive stance towards Minebea Mitsumi’s tender offer while withholding an opinion on YAGEO’s offer due to concerns about the feasibility and synergies of the acquisition. The situation is further complicated by national security concerns and regulatory approvals under Japan’s Foreign Exchange Act, with ongoing discussions and evaluations to ensure the best interest of shareholders.

Shibaura Electronics Updates Tender Offer Support Amid Market Competition
Jun 4, 2025

Shibaura Electronics Co., Ltd. announced a partial correction to its previous notice supporting the tender offer by MinebeaMitsumi, Inc. for its shares. The tender offer period has been extended to provide shareholders with more time to decide, reflecting the competitive dynamics in the market, particularly in light of a competing offer from YAGEO. This move indicates strategic positioning by MinebeaMitsumi to secure shareholder approval amidst regulatory considerations and competitive pressures.

YAGEO Responds to Shibaura’s Concerns Over Tender Offer
May 28, 2025

YAGEO Corporation has submitted a response to inquiries from Shibaura Electronics regarding a tender offer initiated by YAGEO to acquire Shibaura. Despite offering a higher price than a competing bid, Shibaura has expressed concerns over the unclear synergies and certainty of YAGEO’s proposal. YAGEO remains committed to demonstrating potential growth and synergies, emphasizing collaborative discussions and leveraging its resources to enhance Shibaura’s global market presence.

Shibaura Electronics Updates Tender Offer Stance Amid Market Dynamics
May 23, 2025

Shibaura Electronics Co., Ltd. announced a partial correction to its previous notice regarding the tender offer for its shares by MinebeaMitsumi, Inc. The company’s board supports the tender offer but leaves the decision to individual shareholders. The tender offer period has been extended, and MinebeaMitsumi has made necessary corrections to its registration statement. The announcement reflects ongoing strategic decisions amid competitive tender offers, impacting shareholder decisions and market dynamics.

Shibaura Electronics Adopts Neutral Stance on MinebeaMitsumi Tender Offer Amid YAGEO Competition
May 21, 2025

Shibaura Electronics Co., Ltd. has announced a change in its stance regarding the tender offer for its shares by MinebeaMitsumi, Inc. Initially supportive, the company has now adopted a neutral position, leaving the decision to shareholders. This shift comes in light of a competing offer from YAGEO Electronics Japan LLC, which has raised its tender offer price. Shibaura’s board remains supportive of MinebeaMitsumi’s offer but acknowledges uncertainties surrounding YAGEO’s proposal, including potential regulatory hurdles and unclear synergies. The company emphasizes the importance of shareholder discretion in deciding on the tender offers.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 16, 2025