SHINKO Inc. (7120) AI Stock Analysis

• Market Cap: ¥4.03B
• Dividend Yield: 4.41%
• Average Volume (3M): 4.89K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.42
• Revenue Growth: 4.70%
• EPS Growth: 31.78%
• Country: JP
• Employees: 811
• Sector: Technology
• Sector Strength: 84
• Industry: Information Technology Services
• EPS (TTM): 181.86
• Shares Outstanding: 1,834,000
• 10 Day Avg. Volume: 5,130
• 30 Day Avg. Volume: 4,890
• PEG Ratio: 0.72
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.91
• 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

• Rating: 78 Outperform
• Price Target: ¥2,551.00 ▲(15.95%Upside)

SHINKO Inc. shows a strong financial position with consistent revenue growth and improved profitability, supported by a stable balance sheet and robust cash flow generation. The technical indicators highlight bullish momentum, although caution is advised due to overbought conditions. The valuation is attractive, with a low P/E ratio and high dividend yield. These factors collectively suggest a positive outlook for the stock.

SHINKO Inc. Business Overview & Revenue Model

Company Description

SHINKO Inc. (7120) operates in the manufacturing sector, specializing in the production of precision components and equipment. The company offers a diverse range of products that include semiconductor packaging solutions, electronic components, and related materials. SHINKO Inc. is known for its high-quality manufacturing capabilities and innovative technologies that cater to various industries, including electronics, automotive, and telecommunications.

How the Company Makes Money

SHINKO Inc. generates revenue primarily through the sale of its precision components and semiconductor packaging solutions. The company benefits from long-term contracts and relationships with major electronics manufacturers who require high-quality and reliable components for their products. Additionally, SHINKO Inc. engages in research and development to innovate and improve its product offerings, thereby maintaining a competitive edge in the market. Collaboration with key industry players and investment in advanced manufacturing technologies also contribute to the company's earnings by enhancing production efficiency and expanding its market reach.

SHINKO Inc. Financial Statement Overview

Summary

SHINKO Inc. has demonstrated strong financial performance with consistent revenue growth and improving profitability. The improvement in Gross Profit Margin and Net Profit Margin indicates efficient cost management and enhanced operational efficiency. The balance sheet is stable with a low Debt-to-Equity Ratio and strong Return on Equity. Cash flow generation is robust, though variability in free cash flow growth warrants attention.

Income Statement

SHINKO Inc. demonstrates strong performance with consistent revenue growth and improving profitability. The Gross Profit Margin has improved from 23.1% in 2021 to 23.8% in 2025, indicating efficient cost management. The Net Profit Margin has also increased, reaching 3.0% in 2025, reflecting enhanced operational efficiency and cost control. The Revenue Growth Rate is healthy, with a 4.7% increase from 2024 to 2025, showcasing a positive trend in sales. EBIT and EBITDA Margins improved slightly over the years, reinforcing the company's profitability trajectory.

Balance Sheet

The balance sheet reveals a solid equity base with an Equity Ratio of 27.5% in 2025, indicating a stable capital structure. The company has effectively managed its debt, with a low Debt-to-Equity Ratio of 0.05. Return on Equity has improved to 29.3% in 2025, highlighting strong returns for shareholders. However, the decrease in Stockholders' Equity from 2024 to 2025 may be a point of concern if it continues.

Cash Flow

SHINKO Inc. exhibits a robust Operating Cash Flow to Net Income Ratio of 1.80 in 2025, indicating strong cash-generating capabilities. Free Cash Flow is positive and growing, although it decreased from 2024 to 2025. The Free Cash Flow to Net Income Ratio remains strong at 1.58, suggesting effective cash conversion. However, fluctuations in free cash flow growth may pose potential risks if not addressed.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
16.79B	16.90B	16.15B	15.95B	13.89B	12.68B
	Gross Profit
3.91B	4.02B	3.72B	3.63B	3.32B	3.08B
	EBIT
624.67M	687.69M	627.16M	752.83M	605.68M	474.75M
	EBITDA
697.54M	787.99M	706.17M	830.57M	679.53M	467.25M
	Net Income Common Stockholders
399.13M	512.87M	410.62M	481.56M	423.52M	236.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.08B	1.53B	1.51B	929.59M	920.99M	937.74M
	Total Assets
5.75B	6.37B	6.52B	6.47B	5.52B	5.52B
	Total Debt
0.00	85.96M	61.67M	349.25M	33.54M	437.20M
	Net Debt
-1.08B	-1.45B	-1.45B	-580.34M	-887.45M	-500.54M
	Total Liabilities
4.31B	4.62B	4.60B	4.84B	4.53B	4.41B
	Stockholders Equity
1.44B	1.75B	1.91B	1.63B	990.35M	1.11B
Cash Flow		Free Cash Flow
0.00	811.29M	1.07B	-431.30M	942.66M	-420.60M
	Operating Cash Flow
0.00	921.75M	1.13B	-401.53M	978.09M	-290.15M
	Investing Cash Flow
0.00	-186.75M	-114.05M	-29.78M	-35.43M	-173.14M
	Financing Cash Flow
0.00	-709.96M	-441.10M	439.90M	-959.40M	227.51M

SHINKO Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2200.00
• 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:7120, the sentiment is Positive. The current price of 2200 is below the 20-day moving average (MA) of 2203.80, above the 50-day MA of 2087.38, and above the 200-day MA of 1973.36, indicating a bullish trend. The MACD of 31.31 indicates Positive momentum. The RSI at 61.64 is Neutral, neither overbought nor oversold. The STOCH value of 62.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7120.

SHINKO Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4736	82 Outperform	¥4.47B	10.69		1.18%	9.32%	25.59%
7120	78 Outperform	¥4.03B	7.44		4.41%	4.70%	31.78%
4416	70 Outperform	¥4.81B	380.23		―	-2.43%	-78.05%
4450	69 Neutral	¥3.98B	11.54		1.64%	17.68%	-31.19%
3682	63 Neutral	¥4.06B	18.45		3.28%	9.26%	1.71%
Sector *	62 Neutral	$11.93B	10.60	-7.51%	3.00%	7.40%	-8.09%
4068	54 Neutral	¥3.76B	26.36		―	30.73%	―