Shimadzu (7701) AI Stock Analysis

• Market Cap: $1.01T
• Dividend Yield: 0.23%
• Average Volume (3M): 754.32K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.71
• Revenue Growth: 5.30%
• EPS Growth: -4.94%
• Country: JP
• Employees: 14,519
• Sector: Technology
• Sector Strength: 87
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 60.61
• Shares Outstanding: 296,070,250
• 10 Day Avg. Volume: 644,110
• 30 Day Avg. Volume: 754,320
• PEG Ratio: 2.33
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.77
• 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: $4,609.82
• Price Target Upside: 33.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: ¥3,843.00 ▲(11.65%Upside)

Shimadzu's strong financial performance is a significant positive factor, showcasing solid growth and profitability. However, the technical analysis suggests neutral momentum, and the valuation is not particularly attractive due to a low dividend yield and a moderate P/E ratio. These factors result in an overall balanced score.

Shimadzu Business Overview & Revenue Model

Company Description

Shimadzu Corporation, listed on the Tokyo Stock Exchange under the ticker 7701, is a leading Japanese company specializing in the development, manufacturing, and distribution of analytical and measuring instruments. Founded in 1875 and headquartered in Kyoto, Japan, the company operates in various sectors, including medical systems, life sciences, industrial machinery, and aircraft equipment. Shimadzu is renowned for its innovative technologies and high-quality products, which are used globally in research, development, and quality assurance across multiple industries.

How the Company Makes Money

Shimadzu Corporation generates revenue through the sale of its diverse range of products and services across its core business segments. The Analytical & Measuring Instruments segment is a major contributor, offering equipment such as chromatographs, spectrometers, and testing machines used in laboratories and industrial settings worldwide. The Medical Systems segment provides diagnostic imaging equipment, including X-ray systems and ultrasound devices, to healthcare providers. Additionally, Shimadzu's Industrial Machinery division manufactures and sells hydraulic equipment and aircraft components, contributing to its revenue stream. The company also benefits from service contracts, maintenance agreements, and sales of related consumables and accessories, which provide a steady income. Strategic partnerships and collaborations with research institutions and industry leaders further support Shimadzu's growth and market presence, enhancing its ability to provide cutting-edge solutions to meet evolving market demands.

Shimadzu Financial Statement Overview

Summary

Shimadzu exhibits strong financial health with consistent revenue growth, robust profit margins, and efficient cost management. The balance sheet reflects a favorable equity position and low financial leverage, while cash flows indicate strong operational efficiency and positive free cash flow.

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 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	530.57B	539.05B	511.89B	482.24B	428.18B	393.50B
Gross Profit	228.09B	234.44B	220.84B	200.96B	178.62B	156.19B
EBITDA	91.18B	91.90B	95.81B	89.02B	82.55B	65.74B
Net Income	54.12B	53.77B	57.04B	52.05B	47.29B	36.10B
Balance Sheet
Total Assets	658.24B	672.18B	673.96B	618.87B	560.53B	497.46B
Cash, Cash Equivalents and Short-Term Investments	133.57B	143.41B	165.28B	159.27B	157.97B	112.76B
Total Debt	12.47B	11.75B	11.91B	11.27B	11.59B	10.26B
Total Liabilities	166.79B	174.10B	181.63B	195.37B	179.37B	161.96B
Stockholders Equity	491.45B	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: 3442.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 3442 is below the 20-day moving average (MA) of 3529.25, below the 50-day MA of 3526.34, and below the 200-day MA of 4066.36, indicating a bearish trend. The MACD of -9.01 indicates Positive momentum. The RSI at 42.33 is Neutral, neither overbought nor oversold. The STOCH value of 14.44 is Positive, 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
6856	81 Outperform	$457.94B	13.22	11.49%	1.46%	8.15%	3.41%
6951	78 Outperform	¥226.89B	12.17		2.16%	12.83%	-13.96%
6965	75 Outperform	¥537.31B	28.97	5.58%	2.19%	-3.32%	-48.13%
7701	69 Neutral	$1.01T	18.75	10.72%	0.23%	5.30%	-4.94%
Sector *	69 Neutral	¥228.59B	14.33	7.64%	2.71%	9.13%	8.49%
6645	63 Neutral	¥716.46B	44.05	2.10%	2.86%	-2.08%	100.89%
7732	60 Neutral	¥344.60B	826.21	0.43%	1.34%	-0.23%	-91.56%

Shimadzu Corporate Events

Shimadzu Corporation Announces Year-End Dividend with Commemorative Addition

Shimadzu Corporation announced a resolution to issue a year-end dividend of 40 yen per share, which includes a 4 yen commemorative dividend to mark its 150th anniversary. This decision aligns with Shimadzu’s policy of stable shareholder returns and reflects its gratitude towards shareholders, with the total dividend amounting to 11,560 million yen.

Shimadzu Reports Fiscal Year 2025 Financial Results with Increased Sales but Decreased Profits

Shimadzu Corporation reported its consolidated financial results for the fiscal year ending March 31, 2025, showing a 5.3% increase in net sales to ¥539,047 million. However, operating profit and ordinary profit decreased by 1.4% and 6.3%, respectively. The company announced a year-end dividend, including a commemorative dividend for its 150th anniversary, and forecasted a decline in net sales and profits for the next fiscal year, reflecting potential challenges in maintaining growth momentum.