Shimadzu (7701) AI Stock Analysis

• Market Cap: ¥996.81B
• Dividend Yield: 1.85%
• Average Volume (3M): 623.11K
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.73
• Revenue Growth: 4.36%
• EPS Growth: -1.76%
• Country: JP
• Employees: 14,519
• Sector: Technology
• Sector Strength: 76
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 60.61
• Shares Outstanding: 296,070,250
• 10 Day Avg. Volume: 868,420
• 30 Day Avg. Volume: 623,113
• PEG Ratio: 4.30
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥5,032.79
• Price Target Upside: 48.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 70 Outperform
• Price Target: ―

Shimadzu's overall stock score is bolstered by strong financial performance, particularly in terms of revenue and profit growth, as well as robust balance sheet metrics. However, technical analysis signals caution with potential downward momentum, and valuation metrics indicate a fairly priced stock with moderate income potential. The absence of recent cash flow data adds a degree of uncertainty, warranting careful monitoring.

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 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 demonstrates a strong financial position with consistent revenue and profit growth, robust margins, and low financial leverage. The income statement and balance sheet indicate solid performance and low risk. However, the absence of recent cash flow data introduces some uncertainty.

Income Statement

Shimadzu showcases a robust financial performance with consistent revenue growth, evident from a 10% increase in TTM revenue compared to the previous year. The company maintains healthy profit margins, with a TTM gross profit margin of 43% and a net profit margin of 10.2%. Both EBIT and EBITDA margins are strong, highlighting operational efficiency. The steady growth trajectory and profitability indicate a stable income statement.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.03, suggesting low leverage. The equity ratio stands at 74.6%, indicating that a significant portion of the company's assets are financed by shareholders' equity, which reduces financial risk. The company also shows a strong return on equity at 11% (TTM), showcasing efficient use of equity to generate profits. Overall, Shimadzu's balance sheet reflects financial stability and low risk.

Cash Flow

Shimadzu's cash flow statement presents some concerns with a lack of reported figures for TTM. Historically, the company has shown solid free cash flow, though recent free cash flow growth has been inconsistent. The operating cash flow to net income ratio was strong in previous years, indicating good cash generation relative to net income. However, the lack of TTM cash flow data limits a comprehensive analysis.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
530.57B	511.89B	482.24B	428.18B	393.50B	385.44B
	Gross Profit
228.09B	220.84B	200.96B	178.62B	156.19B	152.43B
	EBIT
69.05B	72.75B	68.22B	63.81B	49.74B	41.84B
	EBITDA
93.48B	96.37B	89.02B	82.55B	65.74B	56.62B
	Net Income Common Stockholders
54.12B	57.04B	52.05B	47.29B	36.10B	31.77B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
133.57B	165.28B	159.27B	157.97B	112.76B	70.87B
	Total Assets
658.24B	673.96B	618.87B	560.53B	497.46B	437.62B
	Total Debt
12.47B	11.91B	11.27B	11.59B	10.26B	7.63B
	Net Debt
-121.10B	-153.37B	-147.58B	-146.38B	-102.50B	-63.24B
	Total Liabilities
166.79B	181.63B	195.37B	179.37B	161.96B	134.84B
	Stockholders Equity
491.45B	492.33B	423.50B	381.16B	335.50B	302.77B
Cash Flow		Free Cash Flow
0.00	14.63B	31.46B	53.24B	50.49B	23.64B
	Operating Cash Flow
0.00	30.13B	48.30B	63.37B	63.80B	39.51B
	Investing Cash Flow
0.00	-16.00B	-34.51B	-6.04B	-13.86B	-16.06B
	Financing Cash Flow
0.00	-21.10B	-19.42B	-15.66B	-13.03B	-26.18B

Shimadzu Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3383.00
• 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 3383 is below the 20-day moving average (MA) of 3573.50, below the 50-day MA of 3670.37, and below the 200-day MA of 4217.61, indicating a bearish trend. The MACD of -75.77 indicates Positive momentum. The RSI at 32.30 is Neutral, neither overbought nor oversold. The STOCH value of 11.92 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
6861	81 Outperform	$14.87T	37.31	13.30%	0.56%	9.50%	7.85%
6841	75 Outperform	¥931.32B	17.41	11.39%	1.58%	4.49%	-33.80%
6954	73 Outperform	¥3.66T	24.83		2.42%	0.23%	12.16%
7701	70 Outperform	¥996.81B	18.43	10.72%	1.85%	4.36%	-1.76%
7733	69 Neutral	$2.04T	17.59	15.47%	1.02%	7.60%	-66.30%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
7731	57 Neutral	$437.62B	78.38	0.91%	3.39%	0.01%	-54.41%