SHIMOJIMA Co., Ltd. (7482) AI Stock Analysis

• Market Cap: ¥29.28B
• Dividend Yield: 4.14%
• Average Volume (3M): 24.96K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.73
• Revenue Growth: 5.42%
• EPS Growth: 15.41%
• Country: JP
• Employees: 812
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 22.68
• Shares Outstanding: 23,647,825
• 10 Day Avg. Volume: 26,630
• 30 Day Avg. Volume: 24,963
• PEG Ratio: -1.16
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 102.79
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥1,459.00 ▲(11.89% Upside)

SHIMOJIMA Co., Ltd. scores well due to its strong financial performance and attractive valuation. The company's robust balance sheet and reasonable P/E ratio, combined with a solid dividend yield, make it appealing to investors. Technical analysis indicates a neutral trend, with some potential for upward momentum. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market demand and effective sales strategies, supporting long-term business sustainability.

Balance Sheet Strength

A strong balance sheet with high equity ratio and low debt enhances financial stability and supports future growth initiatives.

Profitability

High gross profit margins reflect efficient cost control and pricing power, contributing to sustained profitability and competitive advantage.

Negative Factors

EBIT Margin Decline

A decline in EBIT margin suggests potential operational inefficiencies, which could impact profitability if not addressed.

Free Cash Flow Decline

Decreasing free cash flow may limit the company's ability to invest in growth opportunities and manage financial obligations effectively.

Cash Flow Management

Moderate cash conversion efficiency highlights potential challenges in optimizing cash flow, which could affect liquidity and investment capacity.

SHIMOJIMA Co., Ltd. Business Overview & Revenue Model

Company Description

Shimojima Co., Ltd. engages in the wholesale and retail of paper products, plastic products and packaging materials, and in-store materials in Japan. The company offers paper bags, wrapping paper, and paper containers; plastic bags, adhesive tapes, food packaging materials, strings and ribbons, and other packaging materials; and in-store display materials, stationery and office supplies, goods for in-store use, apparel-related materials, and horticulture-related materials. It also provides OPP bags, boxes, kitchen goods, tableware, hygiene and cleaning supplies, event supplies, and ceremonial goods. The company was founded in 1920 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SHIMOJIMA Co., Ltd. generates revenue through the production and sale of its packaging products. The company's revenue model is primarily based on direct sales to manufacturers and retailers in various sectors. Key revenue streams include custom packaging solutions, bulk packaging products, and specialized labels. Additionally, the company may benefit from long-term contracts with major clients, which provide a stable income stream. Partnerships with suppliers of raw materials and collaborations with companies in related sectors also contribute to its earnings by enhancing product offerings and market reach.

SHIMOJIMA Co., Ltd. Financial Statement Overview

Summary

SHIMOJIMA Co., Ltd. presents a solid financial profile with strong revenue growth and profitability. The balance sheet is particularly strong, characterized by low leverage and a high equity ratio. While the income statement reflects operational efficiency, slight declines in EBIT indicate areas for operational improvements. Cash flow management remains an area for focus, with opportunities to optimize capital expenditures and enhance cash flow robustness. Overall, the company is well-positioned in the industry with a stable financial foundation and growth trajectory.

Income Statement

SHIMOJIMA Co., Ltd. demonstrates strong revenue growth with a 5% increase in the latest year. The gross profit margin stands at approximately 32%, indicating effective cost management. Despite a slight decline in EBIT margin to 5%, the net profit margin remains healthy at 3.4%, showcasing profitability improvements. The company shows resilience with consistent EBITDA margin performance, though the EBIT margin decline suggests room for operational efficiency enhancements.

Balance Sheet

The company maintains a robust financial position with an equity ratio of 83.9%, highlighting strong solvency. The debt-to-equity ratio is low at 0.015, indicating minimal leverage risk. Return on Equity (ROE) is at 5.9%, reflecting a stable return for shareholders. The balance sheet strength is evidenced by substantial stockholder equity and low total debt levels, promoting financial stability and investment potential.

Cash Flow

Free cash flow decreased by 15.1%, while operating cash flow remains positive, albeit reduced. The free cash flow to net income ratio is 0.14, suggesting a moderate cash conversion efficiency. While the company effectively generates cash from operations, the decline in free cash flow growth points to potential challenges in capital expenditure management. Strategies to improve cash flow sustainability could enhance future financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.38B	60.68B	57.79B	55.03B	48.06B	47.10B
Gross Profit	19.74B	19.44B	19.17B	17.54B	14.97B	15.06B
EBITDA	4.02B	4.16B	4.61B	3.48B	1.18B	570.00M
Net Income	2.24B	2.09B	2.37B	1.54B	87.00M	-331.00M
Balance Sheet
Total Assets	42.59B	41.84B	43.41B	40.02B	37.76B	38.29B
Cash, Cash Equivalents and Short-Term Investments	8.12B	8.09B	9.68B	7.14B	6.04B	7.63B
Total Debt	1.12B	540.00M	424.00M	425.00M	599.00M	614.00M
Total Liabilities	7.58B	6.66B	8.65B	7.34B	6.13B	6.07B
Stockholders Equity	34.94B	35.11B	34.69B	32.62B	31.56B	32.17B
Cash Flow
Free Cash Flow	0.00	284.00M	3.34B	639.00M	-696.00M	472.00M
Operating Cash Flow	0.00	923.00M	4.70B	2.33B	430.00M	1.10B
Investing Cash Flow	0.00	-864.00M	-1.48B	-378.00M	-1.38B	-407.00M
Financing Cash Flow	0.00	-1.69B	-678.00M	-686.00M	-647.00M	-404.00M

SHIMOJIMA Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1304.00
• 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:7482, the sentiment is Neutral. The current price of 1304 is below the 20-day moving average (MA) of 1306.70, above the 50-day MA of 1297.24, and above the 200-day MA of 1239.70, indicating a neutral trend. The MACD of 4.89 indicates Positive momentum. The RSI at 49.50 is Neutral, neither overbought nor oversold. The STOCH value of 22.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7482.

SHIMOJIMA Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3950	82 Outperform	¥74.79B	12.41	―	6.79%	2.85%	-9.13%
3947	80 Outperform	¥24.35B	9.92	―	2.98%	8.54%	5.27%
3943	78 Outperform	¥11.22B	12.97	―	4.64%	4.38%	-12.68%
7482	78 Outperform	¥29.28B	13.46	―	4.14%	5.42%	15.41%
3951	70 Outperform	¥18.83B	12.04	―	4.38%	5.06%	-15.22%
3946	68 Neutral	¥56.78B	7.72	―	3.58%	4.40%	47.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

SHIMOJIMA Co., Ltd. Corporate Events

Shimojima Co., Ltd. Reports Strong Financial Growth in First Half of 2025

Shimojima Co., Ltd. reported a positive financial performance for the six months ending September 30, 2025, with a notable increase in net sales and profits compared to the previous year. The company’s operating profit rose by 27.5%, and its ordinary profit increased by 32.3%, reflecting strong operational efficiency and market demand. This financial growth positions Shimojima favorably within the industry, signaling potential benefits for stakeholders and reinforcing its market presence.