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Shinmaywa Industries (JP:7224)
:7224

Shinmaywa Industries (7224) AI Stock Analysis

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JP:7224

Shinmaywa Industries

(7224)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
¥2,891.00
▲(40.89% Upside)
Action:DowngradedDate:02/05/26
The score is held back primarily by weak TTM cash generation (negative free cash flow and poor cash conversion), which offsets improving earnings and otherwise manageable leverage. Strong technical uptrend and reasonable valuation with a ~2.4% dividend provide support but do not fully mitigate the cash-flow risk.
Positive Factors
Recurring aftermarket revenue
ShinMaywa’s product lines (aircraft, special vehicles, pumps) create long-lived installed bases that generate recurring parts, maintenance and service revenue. That recurring aftermarket income smooths cycles, supports margins over time, and underpins predictable revenue streams for 2–6+ months.
Negative Factors
Weak cash generation
Trailing twelve months show weak cash conversion: operating cash flow low and free cash flow negative. Persistent cash shortfalls constrain reinvestment, increase reliance on external financing for capex or working capital, and raise earnings-quality and funding risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring aftermarket revenue
ShinMaywa’s product lines (aircraft, special vehicles, pumps) create long-lived installed bases that generate recurring parts, maintenance and service revenue. That recurring aftermarket income smooths cycles, supports margins over time, and underpins predictable revenue streams for 2–6+ months.
Read all positive factors

Shinmaywa Industries (7224) vs. iShares MSCI Japan ETF (EWJ)

Shinmaywa Industries Business Overview & Revenue Model

Company Description
ShinMaywa Industries, Ltd., together with its subsidiaries, manufactures and sells transportation equipment in Japan, Asia, North America, and internationally. It offers amphibian and aircraft components; and special purpose trucks, such as dump t...
How the Company Makes Money
Shinmaywa Industries generates revenue through multiple key streams. Primarily, the company earns money by manufacturing and selling its specialized industrial equipment, such as aircraft components and wastewater treatment systems. This includes ...

Shinmaywa Industries Financial Statement Overview

Summary
Income statement trends are improving (TTM revenue +3.6% and multi-year net income growth) with moderate but better margins, and leverage remains manageable (~0.51x debt/equity). However, TTM cash flow is a major weakness (operating cash flow ~JPY 6.0B and negative free cash flow ~JPY -3.7B), with weak cash conversion versus net income, increasing near-term funding and earnings-quality risk.
Income Statement
72
Positive
Balance Sheet
67
Positive
Cash Flow
38
Negative
BreakdownTTMMar 2025Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue274.94B266.44B257.06B225.18B216.82B209.23B
Gross Profit47.05B44.75B40.83B35.93B35.11B33.56B
EBITDA20.48B19.68B16.99B14.62B16.20B16.41B
Net Income10.37B8.96B7.28B7.31B6.91B5.49B
Balance Sheet
Total Assets285.66B266.44B260.10B226.91B221.21B212.06B
Cash, Cash Equivalents and Short-Term Investments22.46B28.47B23.38B22.75B26.60B23.05B
Total Debt60.30B51.81B51.21B53.09B53.00B54.96B
Total Liabilities167.46B153.37B151.37B126.47B126.94B123.22B
Stockholders Equity117.39B112.03B107.01B98.75B92.47B87.94B
Cash Flow
Free Cash Flow-3.67B10.25B8.49B2.15B11.51B12.36B
Operating Cash Flow6.04B20.50B14.06B6.40B16.00B18.12B
Investing Cash Flow-11.75B-12.54B-8.22B-7.93B-7.22B-9.13B
Financing Cash Flow4.92B-3.38B-5.88B-3.34B-5.20B-5.97B

Shinmaywa Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2052.00
Price Trends
50DMA
2445.74
Positive
100DMA
2181.31
Positive
200DMA
1952.86
Positive
Market Momentum
MACD
11.59
Negative
RSI
57.00
Neutral
STOCH
84.99
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7224, the sentiment is Positive. The current price of 2052 is below the 20-day moving average (MA) of 2421.55, below the 50-day MA of 2445.74, and above the 200-day MA of 1952.86, indicating a bullish trend. The MACD of 11.59 indicates Negative momentum. The RSI at 57.00 is Neutral, neither overbought nor oversold. The STOCH value of 84.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7224.

Shinmaywa Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥181.07B12.048.27%2.68%-2.45%7.31%
77
Outperform
¥62.62B11.6716.91%2.28%12.37%26.48%
73
Outperform
¥245.13B9.233.90%2.65%7.16%
65
Neutral
¥258.99B14.728.35%2.73%3.35%810.44%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
¥165.97B8.929.14%2.84%0.26%14.29%
53
Neutral
¥329.15B-15.81-20.43%3.72%-8.20%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7224
Shinmaywa Industries
2,521.00
1,275.85
102.47%
JP:3105
Nisshinbo Holdings
1,647.00
860.59
109.43%
JP:3401
Teijin
1,713.50
611.28
55.46%
JP:5331
Noritake Co.,Limited
3,245.00
1,581.65
95.09%
JP:6328
Ebara Jitsugyo Co., Ltd.
2,521.00
894.06
54.95%
JP:4206
Aica Kogyo Company, Limited
3,754.00
611.29
19.45%

Shinmaywa Industries Corporate Events

ShinMaywa Industries Lifts Nine-Month Profit and Confirms Higher Full-Year Dividend Outlook
Feb 3, 2026
ShinMaywa Industries reported consolidated net sales of ¥195.7 billion for the nine months ended 31 December 2025, up 4.5% year-on-year, with operating profit rising 6.5% to ¥8.9 billion and profit attributable to owners of parent jumpin...
ShinMaywa Industries Announces CEO Succession and Management Reshuffle
Dec 19, 2025
ShinMaywa Industries has announced a leadership transition, appointing current Director and Managing Executive Officer Takashi Kunihara as Representative Director, President and Chief Executive Officer effective April 1, 2026, as part of a broader...
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: Feb 05, 2026