SHINKO Inc. (7120) AI Stock Analysis

• Market Cap: ¥4.48B
• Dividend Yield: 3.9%
• Average Volume (3M): 13.93K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.46
• Revenue Growth: 3.21%
• EPS Growth: 22.41%
• Country: JP
• Employees: 811
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -16.95
• Shares Outstanding: 5,502,000
• 10 Day Avg. Volume: 15,340
• 30 Day Avg. Volume: 13,926
• PEG Ratio: -0.12
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 4.42
• 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: 80 Outperform
• Price Target: ¥2,700.00 ▲(229.27% Upside)

SHINKO Inc. scores highly due to its strong financial performance and attractive valuation, with a low P/E ratio and high dividend yield. Technical analysis supports a positive outlook, although the absence of recent earnings call data and corporate events limits additional insights.

SHINKO Inc. Business Overview & Revenue Model

Company Description

SHINKO Inc. provides maintenance services, IT solutions, and human resource services in Japan. It offers maintenance support services for medical accounting system, electronic medical record system, electronic medication history system, automatic tablet packaging machine, and dispensing audit system; maintenance, operation, and monitoring of computers and peripheral equipment, help desk, and call center; and medical equipment repair services. The company also provides IT system construction and implementation support; IT equipment and network equipment installation support; national simultaneous deployment work support; network integration, including design, construction, installation and construction, operation monitoring, etc.; and network security, installation, and operation monitoring services. In addition, it offers worker dispatch and employment placement services. SHINKO Inc. was founded in 1953 and is based in Taito, Japan with additional offices in Japan.

How the Company Makes Money

SHINKO Inc. generates revenue primarily through the sale of its semiconductor packaging materials and electronic components. The company's revenue model is based on direct sales to manufacturers in the semiconductor and electronics sectors. Key revenue streams include contracts with major semiconductor firms for custom packaging solutions and high-volume production of standard products. Additionally, SHINKO has established partnerships with technology companies to develop innovative packaging solutions, which further enhances its market position. The company's focus on research and development allows it to stay competitive, adapt to market trends, and increase its profitability through value-added services and products.

SHINKO Inc. Financial Statement Overview

Summary

SHINKO Inc. presents a strong financial profile with consistent revenue growth and improving profitability. The company maintains a stable balance sheet with effective debt management and strong equity returns. Cash flow generation is robust, though some 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.72B	16.90B	16.15B	15.95B	13.89B	12.68B
Gross Profit	3.99B	4.02B	3.72B	3.63B	3.32B	3.08B
EBITDA	693.33M	787.99M	706.17M	830.57M	679.53M	467.25M
Net Income	419.43M	512.87M	410.62M	481.56M	423.52M	236.98M
Balance Sheet
Total Assets	5.65B	6.37B	6.52B	6.47B	5.52B	5.52B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.53B	1.51B	929.59M	920.99M	937.74M
Total Debt	209.59M	85.96M	61.67M	349.25M	33.54M	437.20M
Total Liabilities	4.13B	4.62B	4.60B	4.84B	4.53B	4.41B
Stockholders Equity	1.52B	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: 820.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 820 is below the 20-day moving average (MA) of 830.17, above the 50-day MA of 807.74, and above the 200-day MA of 727.18, indicating a neutral trend. The MACD of 5.80 indicates Positive momentum. The RSI at 52.00 is Neutral, neither overbought nor oversold. The STOCH value of 19.94 is Positive, 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
7120	80 Outperform	¥4.48B	9.66	―	3.90%	3.21%	22.41%
4450	77 Outperform	¥7.75B	18.48	―	0.94%	21.32%	6.83%
4736	72 Outperform	¥3.63B	9.39	―	1.46%	9.35%	28.40%
3682	63 Neutral	¥4.07B	18.54	―	3.25%	2.04%	-3.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
4068	61 Neutral	¥3.10B	31.53	―	―	17.03%	644.34%
4416	60 Neutral	¥3.98B	1,176.72	―	―	-0.93%	-97.16%

SHINKO Inc. Corporate Events

SHINKO Inc. Reports Quarterly Loss Amid Future Growth Projections

SHINKO Inc. reported a decline in its financial performance for the three months ending June 30, 2025, with a decrease in net sales and a shift from profit to loss compared to the same period last year. Despite the current downturn, the company has forecasted an improvement in its annual financial results, with expectations of increased net sales and profits by the end of the fiscal year ending March 31, 2026. The company is also planning a stock split, which could impact dividend payouts and share value.