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

• Market Cap: ¥33.45B
• Dividend Yield: 4%
• Average Volume (3M): 24.96K
• Price to Earnings (P/E): 13.8
• 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): 52.90
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: ¥1,679.00 ▲(23.82% Upside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

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

Very strong balance sheet with minimal leverage

An extremely high equity ratio and negligible debt provide long-term financial resilience, reducing refinancing and solvency risk. This balance sheet strength supports investment flexibility, resilience through demand cycles, and capacity to fund operations or opportunistic acquisitions without stressing cash flow.

Recurring consumables business serving retailers and restaurants

A core focus on consumable packaging and store supplies creates predictable repeat purchasing from business customers. This durable demand profile, across wholesale and retail channels, underpins steady revenue streams, higher customer stickiness, and easier forecasting of working-capital needs over multi-month horizons.

Consistent revenue growth and solid gross margins

Sustained top-line growth paired with a healthy gross margin signals effective procurement and pricing discipline. Even with modest net margins, stable margin structure supports long-term profitability, funds reinvestment into distribution and product assortment, and cushions against moderate input-cost volatility.

Negative Factors

Declining free cash flow and low cash conversion

A meaningful drop in free cash flow and a low FCF-to-net-income ratio reduce financial flexibility for capital allocation, dividends, or debt paydown. Over several months this constrains the company's buffer against shocks and limits capability to invest in growth or improve working-capital cycles without external funding.

Compression in operating (EBIT) margin

A declining EBIT margin indicates erosion in operating efficiency or rising overheads. If persistent, margin compression limits internal cash generation and could force trade-offs between price, promotion, or cost reductions. Sustained weakness would impair the firm's ability to scale profitably.

Modest return on equity relative to large equity base

High equity with low ROE signals capital is not being deployed at attractive returns, which can cap shareholder value creation over time. Without improved asset turnover or margin expansion, the company may struggle to justify retained earnings versus returning capital or pursuing higher-return investments.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
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: Positive
• Last Price: 1356.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 1356 is below the 20-day moving average (MA) of 1430.20, below the 50-day MA of 1399.02, and above the 200-day MA of 1286.24, indicating a bullish trend. The MACD of 20.84 indicates Negative momentum. The RSI at 70.58 is Negative, neither overbought nor oversold. The STOCH value of 69.29 is Neutral, 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
3943	78 Outperform	¥12.65B	19.07	―	4.54%	4.38%	-12.68%
7482	78 Outperform	¥33.45B	13.80	―	4.00%	5.42%	15.41%
3947	76 Outperform	¥24.19B	7.62	―	2.92%	8.54%	5.27%
3950	76 Outperform	¥77.49B	12.30	―	6.64%	2.85%	-9.13%
3951	70 Outperform	¥19.33B	13.42	―	4.39%	5.06%	-15.22%
3946	68 Neutral	¥60.39B	7.98	―	3.50%	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 Delivers Double-Digit Profit Growth and Confirms Full-Year Outlook

Shimojima Co., Ltd. reported solid growth for the nine months ended December 31, 2025, with net sales rising 6.2% year on year to ¥49.5 billion and operating profit jumping 22.1% to ¥3.1 billion. Profit attributable to owners of the parent increased 22.0% to ¥2.3 billion, while basic earnings per share climbed to ¥97.90, supported by a stronger comprehensive income and a robust equity ratio above 80%.

Total assets expanded to ¥44.8 billion and net assets to ¥36.4 billion, underscoring a sound balance sheet even as the equity-to-asset ratio eased slightly. The company kept its dividend policy unchanged, maintaining a forecast annual payout of ¥54 per share, and reiterated its full-year outlook, projecting a 4.6% rise in net sales and nearly 20% profit growth, signaling confidence in earnings momentum and continued shareholder returns.

The most recent analyst rating on (JP:7482) stock is a Buy with a Yen1557.00 price target. To see the full list of analyst forecasts on SHIMOJIMA Co., Ltd. stock, see the JP:7482 Stock Forecast page.

Shimojima Reshapes Top Management as Representative Director Resigns

Shimojima Co., Ltd. announced that Representative Director and Executive Vice President Masayuki Shimojima will resign from all positions at the company effective December 31, 2025, leaving President Yoshihiko Kasai as the sole Representative Director. In conjunction with this leadership change, the company will reorganize its board and executive ranks from January 1, 2026, promoting Toshiharu Kawahara to Managing Director and Senior Executive Officer, reassigning Manabu Onuki to oversee the Sales and Marketing Headquarters Division, and appointing Shingo Ojiri as General Manager of the Purchasing Headquarters Division, moves that reshape oversight of sales, marketing, and purchasing functions while maintaining a board structure that includes multiple independent outside directors.

The most recent analyst rating on (JP:7482) stock is a Buy with a Yen1459.00 price target. To see the full list of analyst forecasts on SHIMOJIMA Co., Ltd. stock, see the JP:7482 Stock Forecast page.

Shimojima to Acquire Land in Hyogo to Expand and Rebalance Logistics Network

Shimojima Co., Ltd. has resolved to acquire land within the Kasai Inter Industrial Complex in Kasai City, Hyogo Prefecture, to strengthen its logistics infrastructure and better support consolidated shipments and inventory storage for customers. The roughly 22,180-square-meter site, to be purchased from Daiwa House Industry Co., Ltd., is intended to improve the company’s nationwide distribution balance, as its main logistics centers are currently concentrated in eastern Japan, and is not expected to affect consolidated financial results for the fiscal year ending March 2026.

The most recent analyst rating on (JP:7482) stock is a Buy with a Yen1459.00 price target. To see the full list of analyst forecasts on SHIMOJIMA Co., Ltd. stock, see the JP:7482 Stock Forecast page.