Shibaura Electronics Co., Ltd. (6957) AI Stock Analysis

• Market Cap: ¥109.98B
• Dividend Yield: 2.12%
• Average Volume (3M): 58.51K
• Price to Earnings (P/E): 33.8
• Beta (1Y): 0.55
• Revenue Growth: 3.95%
• EPS Growth: -32.30%
• Country: JP
• Employees: 4,347
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 69.15
• Shares Outstanding: 15,559,730
• 10 Day Avg. Volume: 21,130
• 30 Day Avg. Volume: 58,506
• PEG Ratio: -16.69
• Price to Book (P/B): 1.81
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 30.93
• 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: 75 Outperform
• Price Target: ¥7,875.00 ▲(11.07% Upside)

Shibaura Electronics Co., Ltd. shows strong financial performance with robust revenue growth and profitability, supported by a solid balance sheet. The technical analysis indicates strong bullish momentum, although the stock appears overbought. Valuation metrics suggest the stock is expensive, but the dividend yield offers some compensation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Shibaura's products, reinforcing its market position and supporting long-term business expansion.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, enabling the company to invest in growth opportunities without excessive leverage.

Profitability

Strong profitability margins indicate effective cost control and operational efficiency, supporting sustainable earnings and competitive advantage.

Negative Factors

Free Cash Flow Decline

A significant decline in free cash flow can limit the company's ability to invest in growth initiatives and manage liquidity, posing risks to financial health.

Net Income Decrease

A decrease in net income may signal underlying operational challenges or market pressures that could affect future profitability and growth.

Cash Reserves Decline

Declining cash reserves could impact the company's ability to meet short-term obligations and fund strategic initiatives, affecting financial flexibility.

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

Company Description

Shibaura Electronics Co.,Ltd. manufactures and sells thermistor elements, and products utilizing thermistor elements in Japan and internationally. The company offers temperature sensors, humidity sensors, temperature controllers, anemometers, etc. Its products are used in automobiles, air conditioners, home appliances, housing equipment, industrial equipment, and printers. Shibaura Electronics Co.,Ltd. was founded in 1953 and is headquartered in Saitama, Japan.

How the Company Makes Money

Shibaura Electronics generates revenue through the sale of its electronic components and systems, catering to a diverse range of industries. Key revenue streams include direct sales of semiconductors and electronic devices, as well as providing tailored solutions and services to industrial clients. The company often engages in long-term partnerships with major manufacturers in sectors like automotive and telecommunications, which provide consistent demand for its products. Additionally, Shibaura Electronics invests in research and development to innovate and enhance product offerings, thereby maintaining a competitive edge in the market and ensuring continued revenue growth.

Shibaura Electronics Co., Ltd. Financial Statement Overview

Summary

Shibaura Electronics Co., Ltd. demonstrates strong revenue growth and profitability with efficient cost management. The balance sheet is robust with minimal debt and high equity, providing financial stability. However, challenges in maintaining free cash flow growth could pose risks to liquidity if not addressed.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.22B	34.03B	32.40B	33.19B	30.61B	25.18B
Gross Profit	9.65B	9.54B	9.06B	9.18B	9.01B	6.23B
EBITDA	6.06B	7.03B	7.05B	7.18B	6.92B	4.87B
Net Income	2.94B	3.75B	3.82B	3.83B	3.65B	2.23B
Balance Sheet
Total Assets	42.69B	44.54B	43.57B	40.93B	40.60B	37.27B
Cash, Cash Equivalents and Short-Term Investments	10.64B	12.46B	13.54B	11.78B	12.80B	11.90B
Total Debt	147.00M	297.00M	897.00M	2.00B	3.35B	4.70B
Total Liabilities	7.95B	7.61B	8.41B	9.15B	11.89B	11.80B
Stockholders Equity	34.72B	36.90B	35.12B	31.74B	28.67B	25.43B
Cash Flow
Free Cash Flow	0.00	2.15B	4.28B	1.69B	2.83B	3.34B
Operating Cash Flow	0.00	5.58B	6.09B	3.41B	3.52B	3.97B
Investing Cash Flow	0.00	-3.41B	-1.86B	-1.62B	-796.21M	-552.04M
Financing Cash Flow	0.00	-3.57B	-2.64B	-3.05B	-2.14B	1.32B

Shibaura Electronics Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7090.00
• 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:6957, the sentiment is Positive. The current price of 7090 is above the 20-day moving average (MA) of 7089.50, above the 50-day MA of 7089.00, and above the 200-day MA of 6341.06, indicating a bullish trend. The MACD of 1.34 indicates Negative momentum. The RSI at 51.17 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6866	82 Outperform	¥83.38B	14.46	―	3.23%	7.28%	4.16%
6590	80 Outperform	¥280.84B	24.18	―	1.49%	18.20%	28.13%
6814	76 Outperform	¥266.84B	16.47	―	1.88%	6.56%	106.55%
6957	75 Outperform	¥109.98B	33.78	―	2.12%	3.95%	-32.30%
6908	70 Outperform	¥75.23B	19.06	―	3.05%	10.79%	12.28%
6996	69 Neutral	¥106.01B	31.08	―	2.18%	-0.93%	-45.03%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Shibaura Electronics Co., Ltd. Corporate Events

YAGEO Extends Tender Offer for Shibaura Electronics

YAGEO Corporation has announced amendments to its tender offer for Shibaura Electronics Co., Ltd., extending the offer period to October 20, 2025, after securing an agreement with Nissei Electric Co., Ltd. to tender its shares. This development indicates a strategic move by YAGEO to strengthen its position in the electronics market by acquiring a significant stake in Shibaura Electronics, which could have implications for stakeholders and market dynamics.

The most recent analyst rating on (JP:6957) stock is a Buy with a Yen7875.00 price target. To see the full list of analyst forecasts on Shibaura Electronics Co., Ltd. stock, see the JP:6957 Stock Forecast page.