Shimadzu (7701) AI Stock Analysis

• Market Cap: $1.01T
• Dividend Yield: 0.89%
• Average Volume (3M): 690.04K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 0.70
• Revenue Growth: 5.30%
• EPS Growth: -4.94%
• Country: JP
• Employees: 14,519
• Sector: Technology
• Sector Strength: 90
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 60.61
• Shares Outstanding: 296,070,250
• 10 Day Avg. Volume: 636,700
• 30 Day Avg. Volume: 690,036
• PEG Ratio: -161.66
• Price to Book (P/B): 1.99
• 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: $4,431.83
• Price Target Upside: 31.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: ¥3,843.00 ▲(14.10%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 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 solutions, predominantly in the analytical and measuring instruments sector. The company earns income from the sale of chromatography and spectrometry instruments, which are crucial for laboratories and research facilities. Additionally, its medical systems division contributes significantly to revenue by providing advanced diagnostic imaging equipment and services to healthcare institutions. Shimadzu also benefits from recurring revenues through maintenance services, technical support, and software updates for its equipment. Strategic partnerships and collaborations with research institutions and industry leaders further enhance revenue opportunities by driving innovation and expanding market reach.

Shimadzu Financial Statement Overview

Summary

Shimadzu demonstrates strong financial health with consistent revenue growth, solid profitability, and effective cost and operational management. The balance sheet is robust with low leverage, and cash flow generation is strong, 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	539.05B	511.89B	482.24B	428.18B	393.50B
Gross Profit	234.44B	220.84B	200.96B	178.62B	156.19B
EBITDA	91.90B	95.81B	89.02B	82.55B	65.74B
Net Income	53.77B	57.04B	52.05B	47.29B	36.10B
Balance Sheet
Total Assets	672.18B	673.96B	618.87B	560.53B	497.46B
Cash, Cash Equivalents and Short-Term Investments	143.41B	165.28B	159.27B	157.97B	112.76B
Total Debt	11.75B	11.91B	11.27B	11.59B	10.26B
Total Liabilities	174.10B	181.63B	195.37B	179.37B	161.96B
Stockholders Equity	498.06B	492.33B	423.50B	381.16B	335.50B
Cash Flow
Free Cash Flow	36.90B	14.63B	31.46B	53.24B	50.49B
Operating Cash Flow	52.00B	30.13B	48.30B	63.37B	63.80B
Investing Cash Flow	-23.17B	-16.00B	-34.51B	-6.04B	-13.86B
Financing Cash Flow	-48.41B	-21.10B	-19.42B	-15.66B	-13.03B

Shimadzu Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3368.00
• 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 3368 is below the 20-day moving average (MA) of 3420.05, below the 50-day MA of 3455.88, and below the 200-day MA of 3981.20, indicating a bearish trend. The MACD of -39.22 indicates Positive momentum. The RSI at 45.43 is Neutral, neither overbought nor oversold. The STOCH value of 70.33 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
7701	69 Neutral	$1.01T	18.64	10.72%	0.89%	5.30%	-4.94%
Sector *	68 Neutral	¥234.20B	14.88	7.50%	2.60%	9.27%	5.76%
HPHTF	―	$3.87B	32.43	5.58%	0.20%	―	―
HRIBF	―	$3.20B	14.08	11.49%	0.02%	―	―
OMRNF	―	$5.34B	50.16	2.10%	0.09%	―	―
TOPCF	―	$2.32B	758.46	0.43%	0.68%	―	―
6951	75 Outperform	¥222.25B	11.92		2.12%	12.83%	-13.96%

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.