Shimadzu (7701) AI Stock Analysis

• Market Cap: ¥1.09T
• Dividend Yield: 1.46%
• Average Volume (3M): 736.29K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.74
• Revenue Growth: 3.92%
• EPS Growth: 9.99%
• Country: JP
• Employees: 14,519
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 53.49
• Shares Outstanding: 296,070,250
• 10 Day Avg. Volume: 746,230
• 30 Day Avg. Volume: 736,290
• PEG Ratio: -3.94
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 2.03
• P/FCF Ratio: 29.62
• 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: ¥4,850.00
• Price Target Upside: 15.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 187.78
• Revenue Forecast (FY): ¥554.94B

• Rating: 75 Outperform
• Price Target: ¥4,157.00 ▼(-0.72% Downside)
• Action: Upgraded Date: 10/23/25
• Date: Action: Upgraded 10/23/25

Shimadzu's strong financial performance is the most significant factor, supported by healthy revenue and profit growth, and a solid balance sheet. Technical analysis indicates positive momentum, though caution is advised due to overbought signals. Valuation metrics suggest the stock may be slightly overvalued, which tempers the overall score.

Positive Factors

Strong balance sheet

A low debt-to-equity position and favorable equity ratio give Shimadzu lasting financial flexibility to fund R&D, absorb cyclical downturns, and pursue strategic investments without straining cash flow. This supports durable capital allocation and risk management.

Robust cash generation

Consistent operating cash flow that covers capex and produces rising free cash flow enables sustained reinvestment in product development, service infrastructure, and installed-base support. That cash convertibility underpins long-term operational stability.

Recurring revenue and diversified product mix

A business model combining capital equipment sales with recurring consumables and service contracts creates a durable revenue backbone. Diversification across analytical, medical and industrial segments reduces single-market reliance and supports steady lifecycle revenues.

Negative Factors

Modest revenue growth

Historical revenue growth near mid-single digits suggests limited top-line expansion versus faster-growing peers. Over the medium term this can constrain earnings leverage and investor expectations unless offset by margin expansion or new higher-growth initiatives.

Capital-equipment cyclicality

Heavy reliance on capital equipment sales implies long replacement cycles and customer capex sensitivity, producing lumpy revenue timing. This structural cyclicality increases forecasting uncertainty and requires sustained investment in sales and service during troughs.

Limited near-term disclosure and catalysts

Absence of formal guidance and no recent public structural announcements reduces visibility into future growth drivers. For investors this persistent information gap makes it harder to model near-term investments, product rollouts, or strategic shifts that could materially change fundamentals.

Shimadzu Business Overview & Revenue Model

Company Description

Shimadzu Corporation manufactures and sells analytical and measuring instruments, medical systems, industrial machinery, and aircraft equipment worldwide. Its analytical instruments include gas and liquid chromatography, gas and liquid chromatograph-mass spectrometry, data management and software, molecular spectroscopy, elemental analysis, surface analysis, life science lab instrument, total organic carbon analysis, continuous monitoring analysis, thermal analysis, particle size analysis, materials testing and inspection, non-destructive testing, and balance products. It provides medical systems comprising angiography, fluoroscopy, mobile C-arm, radiography, mobile X-ray systems, and fluorescence imaging products; consist of diffraction gratings, aspherical mirrors, laser mirrors and windows for high power lasers, polka-dot beam splitters, and precision refractometers. The company also offers industrial machinery, including turbo molecular pumps, helium leak detectors, sputtering system, multi deposition system, vacuum heat-treatment furnaces, liquid delivery equipment gear pumps, mechatronic systems glass fiber winders, liquid crystal injection system, and dynamic balancing machines. Further, it provides hydraulic equipment, such as hydraulic gear pumps, power packages, and multi control valves; and aircraft equipment, including electro-mechanical actuators, flight control systems, landing gear systems, and electro-mechanical actuators. Shimadzu Corporation was founded in 1875 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Shimadzu makes money primarily by selling equipment and systems across its business segments and by earning recurring revenue from after-sales services and consumables tied to its installed base. Key revenue streams include: (1) Analytical & Measuring Instruments: Revenue from the sale of analytical platforms (such as chromatography and mass spectrometry systems), materials testing machines, and other measurement/inspection instruments to customers in pharmaceuticals, chemicals, food and environmental testing, academia, and industrial quality control. This stream is typically complemented by ongoing sales of application-specific accessories and supplies (e.g., columns and other consumables used with chromatography systems), software/options, and service contracts. (2) Medical Systems: Revenue from the sale of medical imaging/diagnostic equipment and related solutions to hospitals and clinics, supported by maintenance, repairs, parts replacement, and service agreements over the equipment lifecycle. (3) Industrial Machinery & Equipment (and other related businesses): Revenue from sales of industrial machinery and specialized equipment used in manufacturing and production settings, along with associated engineering, installation, and maintenance services where applicable. Across segments, earnings are influenced by product mix (high-value instruments vs. lower-priced items), the scale of recurring service/consumables tied to the installed base, and demand from regulated industries (notably pharmaceuticals) where instrument uptime, validation, and service support can drive repeat purchases and long-term service relationships. Specific named partnerships or revenue-sharing arrangements: null.

Shimadzu Financial Statement Overview

Summary

Shimadzu demonstrates strong financial health with consistent revenue growth, robust profit margins, and effective cost management. The balance sheet is solid with low financial leverage, and cash flow generation is healthy, supporting sustainable growth.

Income Statement

Shimadzu has shown consistent revenue growth with a notable increase in total revenue over recent years. The gross profit margin is strong, indicating efficient production and cost management. The net profit margin is healthy, reflecting solid profitability. EBIT and EBITDA margins are robust, suggesting effective operational management.

Balance Sheet

The company maintains a strong equity position relative to its total assets, leading to a favorable equity ratio. The debt-to-equity ratio is low, indicating prudent financial leverage. Return on equity is solid, demonstrating effective use of shareholder funds to generate profits.

Cash Flow

Shimadzu's cash flow from operations is strong and covers its capital expenditures, leading to positive free cash flow. The free cash flow growth rate is favorable, showing increasing cash generation. The operating cash flow to net income ratio is solid, indicating good cash conversion efficiency.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	540.48B	539.05B	511.89B	482.24B	428.18B	393.50B
Gross Profit	237.62B	234.44B	220.84B	200.96B	178.62B	156.19B
EBITDA	93.38B	92.40B	91.86B	86.13B	80.23B	65.48B
Net Income	51.71B	53.77B	57.04B	52.05B	47.29B	36.10B
Balance Sheet
Total Assets	647.30B	672.18B	673.96B	618.87B	560.53B	497.46B
Cash, Cash Equivalents and Short-Term Investments	137.95B	143.41B	165.28B	159.27B	157.97B	112.76B
Total Debt	11.07B	11.75B	11.91B	11.27B	11.59B	10.26B
Total Liabilities	153.75B	174.10B	181.62B	195.37B	179.36B	161.95B
Stockholders Equity	493.55B	498.06B	492.33B	423.50B	381.16B	335.50B
Cash Flow
Free Cash Flow	0.00	36.90B	14.63B	31.46B	53.24B	50.49B
Operating Cash Flow	0.00	52.00B	30.13B	48.30B	63.37B	63.80B
Investing Cash Flow	0.00	-23.17B	-16.00B	-34.51B	-6.04B	-13.86B
Financing Cash Flow	0.00	-48.41B	-21.10B	-19.42B	-15.66B	-13.03B

Shimadzu Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4187.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7701, the sentiment is Negative. The current price of 4187 is above the 20-day moving average (MA) of 4023.35, above the 50-day MA of 4166.64, and above the 200-day MA of 3907.47, indicating a bearish trend. The MACD of -100.09 indicates Positive momentum. The RSI at 33.77 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7701.

Shimadzu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6861	80 Outperform	¥13.65T	30.90	12.80%	0.78%	7.09%	7.51%
6856	78 Outperform	¥757.93B	18.06	11.99%	0.65%	8.50%	14.06%
6951	78 Outperform	¥284.69B	8.42	―	2.04%	-0.69%	-29.88%
7701	75 Outperform	¥1.09T	19.48	11.14%	1.46%	3.92%	9.99%
6754	75 Outperform	$353.69B	28.58	7.44%	1.76%	-0.89%	53.87%
6965	74 Outperform	$549.48B	44.29	4.03%	2.25%	3.97%	-41.76%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Shimadzu Corporate Events

Shimadzu to Shift Consolidated Reporting to IFRS From Fiscal 2029

Shimadzu Corporation will voluntarily adopt International Financial Reporting Standards for its consolidated financial statements starting with the fiscal year ending March 31, 2029, with IFRS-based disclosures beginning from the first quarter of that year. The move, approved by the board of directors, aims to enhance international comparability of its financial information and to support a more unified global management framework across the Shimadzu group, with Japanese GAAP remaining in use until the fiscal year ending March 31, 2028.

Under the transition plan, fiscal 2028 results and statutory filings will continue to be prepared under Japanese GAAP, while from fiscal 2029 all quarterly and annual consolidated financial results, financial statements, and securities reports will shift to IFRS. The company also plans to present its earnings forecast for the fiscal year ending March 31, 2029 on an IFRS basis, signaling a full alignment of external financial communication with international standards and potentially improving transparency and comparability for global investors.

The most recent analyst rating on (JP:7701) stock is a Buy with a Yen5500.00 price target. To see the full list of analyst forecasts on Shimadzu stock, see the JP:7701 Stock Forecast page.

Shimadzu Keeps Top Leadership While Tweaking Executive Structure

Shimadzu has announced a series of executive changes approved by its Board of Directors, with most top management, including Chairman Teruhisa Ueda and President and CEO Yasunori Yamamoto, reappointed to their current roles to ensure continuity in governance and strategy. The company also promoted Shigenori Aoyama to senior managing executive officer and clarified responsibilities for risk management, environmental initiatives and corporate functions, signaling incremental adjustments rather than a strategic overhaul, with the new structure effective April 1 and to be presented to shareholders at the upcoming annual meeting.

The updated executive lineup maintains existing leadership in key business divisions such as analytical and measuring instruments and medical systems, suggesting a steady course in Shimadzu’s core operations and market approach. By reaffirming its current leadership while fine-tuning oversight of corporate transformation, global environmental management and internal control, Shimadzu appears to be reinforcing its organizational stability and governance framework, which may be viewed positively by investors and other stakeholders seeking continuity with measured evolution.

The most recent analyst rating on (JP:7701) stock is a Buy with a Yen5500.00 price target. To see the full list of analyst forecasts on Shimadzu stock, see the JP:7701 Stock Forecast page.

Shimadzu Delivers Higher Nine-Month Profit and Raises Full-Year Guidance

Shimadzu reported solid financial performance for the nine months ended December 31, 2025, with net sales rising 3.8% year-on-year to ¥398.7 billion and profit attributable to owners of parent increasing 8.1% to ¥39.1 billion, reflecting improved profitability after a weak prior-year period. Operating and ordinary profits grew 6.8% and 7.8% respectively, while basic earnings per share climbed to ¥135.28, and the equity-to-asset ratio strengthened to 77.0% as net assets expanded. The company maintained its dividend policy with a planned full-year payout of ¥67 per share for the year ending March 31, 2026, slightly above the previous year excluding a one-off commemorative dividend, and revised its full-year earnings forecast, now projecting modest full-year growth with net sales of ¥555 billion and profit attributable to owners of parent of ¥54 billion, underscoring stable operations and a conservative but steady outlook for shareholders and other stakeholders.

The most recent analyst rating on (JP:7701) stock is a Buy with a Yen5000.00 price target. To see the full list of analyst forecasts on Shimadzu stock, see the JP:7701 Stock Forecast page.

Shimadzu to Acquire Tescan, Expanding Global Electron Microscopy and Analytical Solutions Business

Shimadzu has agreed to acquire Tescan Group, a European pioneer in electron microscopy, by purchasing all shares of Glass HoldCo s.r.o., the special purpose company that indirectly owns Tescan, thereby making Tescan a wholly owned subsidiary. The deal deepens a partnership that began with a 2024 business alliance and joint-branded SEM products and is intended to integrate Tescan’s strengths in surface observation and analysis—through SEM, FIB-SEM, TEM and Micro-CT systems—with Shimadzu’s capabilities in composition and physical property analysis, expanding its analytical measurement lineup and global reach. By leveraging Shimadzu’s customer network and support infrastructure alongside Tescan’s broad international customer base, the company aims to accelerate its transformation into a comprehensive solutions provider, boost sales of advanced electron microscopy systems, and drive joint development of new products and applications, supporting medium- to long-term growth and competitiveness in the analytical instrumentation market.

The most recent analyst rating on (JP:7701) stock is a Buy with a Yen4573.00 price target. To see the full list of analyst forecasts on Shimadzu stock, see the JP:7701 Stock Forecast page.