Shinko Shoji Co (8141) AI Stock Analysis

• Market Cap: ¥31.31B
• Dividend Yield: 1.34%
• Average Volume (3M): 140.15K
• Price to Earnings (P/E): 40.8
• Beta (1Y): 0.43
• Revenue Growth: -34.13%
• EPS Growth: -31.24%
• Country: JP
• Employees: 656
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 8.83
• Shares Outstanding: 31,010,567
• 10 Day Avg. Volume: 155,690
• 30 Day Avg. Volume: 140,153
• PEG Ratio: -0.68
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 0.91
• 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: 64 Neutral
• Price Target: ¥1,090.00 ▲(2.83% Upside)

The overall stock score of 64 reflects a mixed outlook for Shinko Shoji Co. The company's strong cash flow and solid balance sheet are positive factors, indicating financial stability and efficient cash management. However, challenges in revenue growth and high valuation metrics weigh on the score. Technical indicators suggest a neutral to slightly bullish short-term outlook, but the high P/E ratio raises concerns about potential overvaluation.

Positive Factors

Cash Flow Strength

Strong cash flow indicates efficient cash management, allowing for reinvestment and debt reduction, enhancing long-term financial stability.

Balance Sheet Health

Low leverage and a strong equity base suggest financial stability, providing a cushion against economic downturns and supporting future growth.

Operational Efficiency

Strong EBITDA margins reflect effective cost management and operational efficiency, which can sustain profitability even amid revenue challenges.

Negative Factors

Revenue Decline

A sharp revenue decline can strain profit margins and hinder growth, necessitating strategic adjustments to stabilize and grow the business.

Profit Margin Pressure

Decreasing profit margins indicate challenges in maintaining profitability, potentially impacting long-term earnings and shareholder value.

Revenue Growth Challenges

Ongoing revenue growth challenges could limit the company's ability to capitalize on market opportunities and expand its market position.

Shinko Shoji Co Business Overview & Revenue Model

Company Description

Shinko Shoji Co., Ltd. deals in electric motors and transformers in Japan and internationally. It operates through Electronic Components Business, Assembly Business, and Other Business segments. The company offers electronic components, including integrated circuits, semiconductor chips, circuit components, LCD products, and other electronic parts, as well as assembly products. It also develops embedded software products; and undertakes ASIC/FPGA design and development projects on a contract basis, as well as offers AIplay, an aerial image manipulation device. In addition, the company provides EMS and device solutions; embedded and Internet of things solutions; and parts and systems for the amusement industry. The company was founded in 1953 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Shinko Shoji Co generates revenue primarily through the wholesale distribution of industrial materials, where it acts as an intermediary between manufacturers and end-users. The company's revenue model is based on margin earned from the sale of these products, which are procured at lower prices and sold at a markup. Key revenue streams include sales of chemicals, electronic components, and construction materials. Additionally, Shinko Shoji may engage in long-term contracts with clients, providing stable revenue flow. Strategic partnerships with manufacturers and suppliers enhance its procurement capabilities, allowing the company to offer competitive pricing and a diverse product range, which are critical factors contributing to its overall earnings.

Shinko Shoji Co Financial Statement Overview

Summary

Shinko Shoji Co exhibits a mixed financial performance. The income statement reveals challenges in maintaining revenue growth, impacting profit margins. Nonetheless, the balance sheet is robust, characterized by low leverage and a strong equity base, which bodes well for financial stability. The cash flow situation is particularly strong, with excellent cash generation capabilities, suggesting efficient cash management and potential for reinvestment or debt reduction.

Income Statement

The company has experienced fluctuating revenue trends, with the most recent period showing a significant decline in total revenue by approximately 34% from the previous year. Gross profit margins have seen a slight reduction, while net profit margins have decreased due to reduced revenues. However, the company maintains strong EBITDA margins, indicating operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of about 0.19, indicating low leverage and financial stability. Return on equity remains positive, and the equity ratio suggests a stable financial position with stockholders' equity covering a significant portion of total assets.

Cash Flow

The cash flow statement is strong, with substantial free cash flow generation in the most recent period, reflecting a significant improvement. The operating cash flow to net income ratio is notably high, indicating strong cash generation relative to net income, while free cash flow to net income also shows robust conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	105.13B	116.01B	175.85B	179.08B	135.21B	102.90B
Gross Profit	8.44B	9.25B	14.70B	17.00B	12.91B	9.34B
EBITDA	1.45B	1.67B	5.23B	7.37B	4.53B	2.04B
Net Income	578.00M	506.00M	3.19B	4.71B	2.82B	1.25B
Balance Sheet
Total Assets	80.26B	80.05B	99.81B	98.83B	88.95B	73.49B
Cash, Cash Equivalents and Short-Term Investments	29.68B	31.61B	13.39B	10.93B	10.71B	17.70B
Total Debt	9.30B	10.07B	17.48B	17.82B	11.24B	4.39B
Total Liabilities	27.99B	27.51B	43.70B	46.27B	37.01B	23.15B
Stockholders Equity	51.42B	51.70B	55.33B	51.86B	51.37B	49.72B
Cash Flow
Free Cash Flow	0.00	31.64B	4.55B	-1.04B	-11.90B	-4.91B
Operating Cash Flow	0.00	31.72B	4.70B	-905.00M	-11.63B	-4.53B
Investing Cash Flow	0.00	-3.09B	105.00M	9.00M	-407.00M	-714.00M
Financing Cash Flow	0.00	-11.56B	-2.76B	682.00M	4.25B	-1.23B

Shinko Shoji Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1060.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8141, the sentiment is Positive. The current price of 1060 is above the 20-day moving average (MA) of 1048.95, above the 50-day MA of 1038.46, and above the 200-day MA of 969.97, indicating a bullish trend. The MACD of 8.76 indicates Positive momentum. The RSI at 54.35 is Neutral, neither overbought nor oversold. The STOCH value of 16.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8141.

Shinko Shoji Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8093	76 Outperform	¥23.02B	6.15	―	3.83%	41.87%	167.99%
7537	75 Outperform	¥35.54B	11.43	―	5.16%	1.71%	-29.37%
8137	74 Outperform	¥47.42B	19.16	―	4.12%	-4.88%	-26.05%
9880	73 Outperform	¥29.14B	22.40	―	3.25%	0.17%	21.01%
8023	72 Outperform	¥14.81B	8.87	―	4.62%	-2.98%	4.56%
8141	64 Neutral	¥31.31B	40.76	1.55%	1.34%	-34.13%	-31.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Shinko Shoji Co Corporate Events

Shinko Shoji Co. Announces Strategic Merger with Novalux Japan

Shinko Shoji Co., Ltd. has announced a merger and acquisition of its wholly owned subsidiary, Novalux Japan Company Limited, effective April 1, 2026. This strategic move aims to enhance business expansion and corporate value by optimizing managerial resources and integrating group functions, particularly in response to growing demands for AI and IoT-based product planning. The merger will dissolve Novalux Japan, with Shinko Shoji Co., Ltd. as the surviving entity, allowing the company to strengthen its position in the market.

The most recent analyst rating on (JP:8141) stock is a Hold with a Yen1090.00 price target. To see the full list of analyst forecasts on Shinko Shoji Co stock, see the JP:8141 Stock Forecast page.

Shinko Shoji Completes Treasury Stock Acquisition

Shinko Shoji Co., Ltd. has completed the acquisition of 100,800 shares of its treasury stock, valued at 104,242,000 yen, through market purchases on the Tokyo Stock Exchange. This acquisition is part of a larger plan approved by the Board of Directors to acquire up to 1,600,000 shares, representing 5.37% of the company’s outstanding shares, with a maximum budget of 1,500,000,000 yen, indicating a strategic move to consolidate its market position.

The most recent analyst rating on (JP:8141) stock is a Hold with a Yen1090.00 price target. To see the full list of analyst forecasts on Shinko Shoji Co stock, see the JP:8141 Stock Forecast page.

Shinko Shoji Co. Reports Decline in Sales but Boosts Profit

Shinko Shoji Co., Ltd. reported a significant decline in its consolidated financial results for the six months ended September 30, 2025, with net sales dropping by 29.5% compared to the previous year. Despite the decrease in sales and profits, the company managed to achieve a 100.9% increase in profit attributable to owners of the parent, indicating a potential shift in operational efficiency or cost management strategies. The company’s equity ratio remains strong at 62.7%, and it has maintained its dividend forecast, suggesting a stable financial position despite the challenging period.

The most recent analyst rating on (JP:8141) stock is a Hold with a Yen1073.00 price target. To see the full list of analyst forecasts on Shinko Shoji Co stock, see the JP:8141 Stock Forecast page.

Shinko Shoji Announces Deferred Tax Asset Reversal

Shinko Shoji Co., Ltd. has announced a reversal of deferred tax assets amounting to 939 million yen for the six months ending September 30, 2025. Despite this reversal, the company has stated that there will be no change to its consolidated financial results forecast previously announced in May 2025.

The most recent analyst rating on (JP:8141) stock is a Hold with a Yen1073.00 price target. To see the full list of analyst forecasts on Shinko Shoji Co stock, see the JP:8141 Stock Forecast page.