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

• Market Cap: ¥27.71B
• Dividend Yield: 4.42%
• Average Volume (3M): 127.84K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.82
• Revenue Growth: 4.99%
• EPS Growth: -12.09%
• Country: JP
• Employees: 812
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Packaging & Containers
• EPS (TTM): 9.04
• Shares Outstanding: 23,647,825
• 10 Day Avg. Volume: 50,810
• 30 Day Avg. Volume: 127,843
• PEG Ratio: <0.01
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.87
• 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: 72 Outperform
• Price Target: ¥1,344.00 ▲(10.62%Upside)

The overall score of 72 reflects SHIMOJIMA Co., Ltd.'s strong financial performance and solid balance sheet, which are the most significant positive factors. The technical analysis and valuation present a mixed picture, with neutral technical indicators and moderate valuation metrics contributing to a balanced risk/reward outlook. The absence of earnings call insights or notable corporate events means these factors do not influence the score.

SHIMOJIMA Co., Ltd. Business Overview & Revenue Model

Company Description

SHIMOJIMA Co., Ltd. (7482) is a Japan-based company primarily engaged in the wholesale distribution of paper products and packaging materials. The company offers a wide range of products including paper bags, wrapping paper, and other packaging solutions, catering to various industries such as retail, food services, and logistics. With a focus on quality and sustainability, SHIMOJIMA has established itself as a key player in the packaging and materials sector in Japan.

How the Company Makes Money

SHIMOJIMA Co., Ltd. generates its revenue through the sale of paper and packaging products, operating primarily as a wholesaler. The company supplies its products to a diverse clientele across multiple industries, which include retail businesses, food service providers, and logistics companies. SHIMOJIMA's revenue streams are primarily driven by the volume of packaging materials sold, and its ability to maintain a broad and reliable distribution network. Additionally, the company may engage in partnerships with manufacturers for exclusive distribution rights or joint ventures to expand its market presence. The focus on environmentally friendly and sustainable products also positions SHIMOJIMA to attract eco-conscious businesses, potentially enhancing its competitive edge and revenue opportunities.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
59.84B	60.68B	57.79B	55.03B	48.06B	47.10B
	Gross Profit
19.25B	19.44B	19.17B	17.54B	14.97B	15.06B
	EBIT
2.68B	3.01B	3.26B	2.01B	44.00M	275.00M
	EBITDA
3.75B	4.16B	4.61B	3.05B	1.18B	1.25B
	Net Income Common Stockholders
1.98B	2.09B	2.37B	1.54B	87.00M	-331.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.04B	8.09B	9.68B	7.14B	6.04B	7.63B
	Total Assets
42.80B	41.84B	43.41B	40.02B	37.76B	38.29B
	Total Debt
90.00M	540.00M	424.00M	425.00M	599.00M	614.00M
	Net Debt
-6.95B	-7.55B	-9.26B	-6.71B	-5.44B	-7.01B
	Total Liabilities
7.66B	6.66B	8.65B	7.34B	6.13B	6.07B
	Stockholders Equity
35.07B	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: Positive
• Last Price: 1215.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7482, the sentiment is Positive. The current price of 1215 is above the 20-day moving average (MA) of 1195.85, above the 50-day MA of 1205.28, and below the 200-day MA of 1257.31, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 83.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7482.

SHIMOJIMA Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3947	79 Outperform	¥19.78B	4.94		3.51%	9.75%	153.81%
3950	79 Outperform	¥62.11B	10.57		4.04%	2.76%	-3.98%
3946	74 Outperform	¥45.80B	7.06		3.94%	3.82%	22.44%
3951	73 Outperform	¥18.70B	10.82		4.61%	4.95%	6.56%
7482	72 Outperform	¥27.71B	13.68		4.42%	4.99%	-12.09%
3943	69 Neutral	¥10.23B	9.88		3.33%	6.92%	-11.72%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%

SHIMOJIMA Co., Ltd. Corporate Events

Shimojima Co., Ltd. Plans New Distribution Center to Boost Logistics

Shimojima Co., Ltd. has announced plans to acquire non-current assets to build a new distribution center in Hyogo Prefecture, scheduled for completion in June 2028. This strategic move aims to enhance the company’s logistics capacity and optimize its nationwide distribution process, with an investment of approximately ¥15.0 billion funded through its own resources and borrowings.

Shimojima Co., Ltd. Completes Share Distribution and Alters Major Shareholder

Shimojima Co., Ltd. has completed an off-floor distribution of 1,140,000 shares at a price of 1,085 Yen per share, which has resulted in a change of its major shareholder. This strategic move aims to enhance the liquidity and distribution of the company’s shares, potentially impacting its market presence and shareholder dynamics.

Shimojima Co., Ltd. Announces Off-Floor Share Distribution

Shimojima Co., Ltd. has announced plans to conduct an off-floor distribution of 1,140,000 shares to improve the liquidity and distribution of its shares. The distribution will take place on May 20, 2025, with a limit of 10,000 shares per purchasing customer, and the price will be determined based on the closing price the day before distribution. This move is intended to enhance the company’s stock market presence and could be postponed if market conditions fluctuate rapidly.

Shimojima Co., Ltd. Announces Executive Changes

Shimojima Co., Ltd. has announced changes in its executive team, including the appointment of a new Audit & Supervisory Board Member and changes in executive officers, effective June 25, 2025. These changes are part of the company’s ongoing efforts to strengthen its governance and operational efficiency, potentially impacting its strategic direction and stakeholder relations.

Shimojima Co., Ltd. Introduces New Dividend Policy to Enhance Shareholder Returns

Shimojima Co., Ltd. has announced a change in its dividend policy to include a consolidated dividend on equity ratio (DOE) as a new indicator, aiming to enhance the level and stability of dividends for shareholders. This strategic move underscores the company’s commitment to profit distribution as a key management issue, potentially strengthening its market position and benefiting stakeholders by providing clearer guidance on dividend returns.

Shimojima Co., Ltd. Reports Fiscal Year 2025 Financial Results and Positive Outlook for 2026

Shimojima Co., Ltd. reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 5% increase in net sales to ¥60,680 million. However, the company experienced a decline in operating and ordinary profits by 8.5% and 8.8% respectively, with profit attributable to owners down by 12%. Despite these declines, the company increased its annual dividend per share to ¥54.00, reflecting a commitment to shareholder returns. Looking ahead, Shimojima forecasts growth in the fiscal year ending March 31, 2026, with expected increases in net sales, operating profit, and ordinary profit, indicating a positive outlook for the company.