SHIMAMURA Co (8227) AI Stock Analysis

• Market Cap: ¥755.80B
• Dividend Yield: 2.02%
• Average Volume (3M): 233.38K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.26
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 3,157
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 55.53
• Shares Outstanding: 221,479,800
• 10 Day Avg. Volume: 199,580
• 30 Day Avg. Volume: 233,383
• PEG Ratio: 3.36
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 15.35
• 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): 215.56
• Revenue Forecast (FY): ¥721.74B

• Rating: 68 Neutral
• Price Target: ¥11,140.00 ▲(230.07% Upside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is supported primarily by strong financial resilience (notably a debt-free balance sheet and stable margins). This is offset by weak recent fundamental momentum (TTM revenue and free cash flow declines) and bearish technical signals, while valuation appears reasonable but not decisively cheap.

SHIMAMURA Co Business Overview & Revenue Model

Company Description

SHIMAMURA Co., Ltd. operates stores in Japan and Taiwan. The company's stores provide clothing, fashion, food, and housing-related products. SHIMAMURA Co., Ltd. was founded in 1953 and is headquartered in Saitama, Japan.

How the Company Makes Money

SHIMAMURA makes money mainly by purchasing apparel and related goods from manufacturers/wholesalers and selling them to consumers through its store network, earning gross profit on the spread between procurement cost and retail selling price. Its core revenue stream is net sales from in-store retail transactions across its various store formats (e.g., general apparel/value-fashion and other specialty formats). Earnings are supported by high store productivity and inventory turnover typical of discount/value retailing, where profitability is driven by (1) volume sales, (2) disciplined markdown management, and (3) cost-efficient store operations and logistics. Information on material non-retail revenue streams (e.g., significant e-commerce, licensing/royalties, financial services, or major partnership-driven income) is null.

SHIMAMURA Co Financial Statement Overview

Summary

Strong overall financial quality driven by a debt-free balance sheet and consistently healthy retail margins, but tempered by the latest TTM revenue decline (-17.9%) and a notable drop in free cash flow (-33.7%) with weaker cash conversion versus net income.

Income Statement

Profitability is solid and consistent for a retailer, with gross margin holding around ~34% and operating margin around ~8.6%–8.9% in recent annual periods, supporting steady net margin near ~6.2%–6.3%. The key weakness is growth: after several years of modest annual revenue expansion, the latest TTM (Trailing-Twelve-Months) shows a sharp revenue decline (-17.9%), which meaningfully pressures the forward earnings outlook even though margins remain relatively stable.

Balance Sheet

Balance sheet quality is a major strength: the company reports zero total debt across periods, implying very low financial risk and strong flexibility. Equity has steadily grown over time, and returns on equity are healthy and stable (roughly ~8%–9% recently), though not exceptional. The main trade-off is that the very conservative capital structure may limit upside from leverage in stronger growth periods, but overall balance sheet risk looks minimal.

Cash Flow

Cash generation is positive, with TTM (Trailing-Twelve-Months) operating cash flow and free cash flow both solidly positive. However, cash conversion is a bit weaker in the latest TTM: operating cash flow is well below net income (about ~0.66x) and free cash flow covers only ~0.67x of net income, suggesting working-capital headwinds and/or higher cash outlays. Free cash flow also declined sharply in the TTM period (-33.7%), which is the primary weakness despite generally decent cash flow in prior years.

Breakdown	TTM	Feb 2025	Feb 2024	Feb 2023	Feb 2022	Feb 2021
Income Statement
Total Revenue	694.74B	666.74B	636.50B	617.52B	584.77B	543.56B
Gross Profit	238.03B	226.16B	219.97B	211.39B	200.08B	185.04B
EBITDA	68.17B	65.34B	61.23B	59.19B	55.33B	43.50B
Net Income	43.38B	41.88B	40.08B	38.02B	35.43B	26.16B
Balance Sheet
Total Assets	616.90B	570.94B	537.57B	505.87B	478.02B	455.23B
Cash, Cash Equivalents and Short-Term Investments	281.08B	297.00B	270.83B	263.16B	234.43B	211.49B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	94.53B	69.96B	66.16B	65.81B	67.02B	70.84B
Stockholders Equity	522.37B	500.98B	471.41B	440.05B	411.00B	384.39B
Cash Flow
Free Cash Flow	36.57B	41.13B	33.41B	37.17B	28.96B	37.95B
Operating Cash Flow	54.89B	52.80B	41.16B	41.55B	37.21B	46.23B
Investing Cash Flow	-46.41B	4.65B	-87.20B	2.33B	143.14B	-111.32B
Financing Cash Flow	-15.08B	-12.51B	-9.94B	-9.20B	-8.46B	-7.36B

SHIMAMURA Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9983	75 Outperform	¥19.43T	29.11	19.84%	0.90%	9.56%	16.37%
7564	74 Outperform	¥505.98B	19.71	―	1.04%	10.84%	16.83%
2792	72 Outperform	¥40.46B	10.95	―	3.62%	-0.98%	-29.86%
2670	71 Outperform	¥609.88B	17.79	12.11%	2.68%	2.99%	5.66%
2726	70 Outperform	¥260.59B	19.60	―	1.46%	12.02%	-15.70%
8227	68 Neutral	¥755.80B	16.45	8.48%	2.02%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

SHIMAMURA Co Corporate Events

Shimamura to Grant Restricted Treasury Shares to Align Executives With Long-Term Performance

Shimamura has approved the disposal of 20,700 treasury shares as restricted share-based remuneration for 15 executive officers, at a price of ¥3,520 per share and a total value of ¥72.86 million, with payment scheduled for April 1, 2026. The program, part of a previously introduced share-based compensation plan, ties stock awards to continued service and performance, reinforcing executives’ alignment with shareholder interests and the company’s medium- to long-term value creation.

Under the restricted share allotment agreement, executives are barred from transferring or otherwise disposing of the granted shares during a defined restriction period, and any shares for which restrictions are not lifted may be acquired by the company without compensation. The transfer restrictions are lifted only if executives remain in continuous service through the first subsequent fiscal year-end or resign under conditions deemed justifiable by the board, strengthening retention incentives and supporting stable, shareholder-focused management.

The most recent analyst rating on (JP:8227) stock is a Buy with a Yen11790.00 price target. To see the full list of analyst forecasts on SHIMAMURA Co stock, see the JP:8227 Stock Forecast page.

Shimamura Completes ¥45.7 Billion Share Buyback in Single-Day ToSTNeT-3 Transaction

SHIMAMURA Co., Ltd. has completed a large-scale share buyback, repurchasing 4.3 million shares of its common stock for a total of ¥45.666 billion, at ¥10,620 per share, via the Tokyo Stock Exchange’s off-auction own share repurchase trading system (ToSTNeT-3) on January 27, 2026. The transaction fully exhausts the authorization granted by the board of directors a day earlier, signaling a strong capital return initiative that may enhance shareholder value through reduced share count and potentially improved earnings per share, while underlining management’s confidence in the company’s valuation and financial position.

The most recent analyst rating on (JP:8227) stock is a Buy with a Yen11790.00 price target. To see the full list of analyst forecasts on SHIMAMURA Co stock, see the JP:8227 Stock Forecast page.

Shimamura Launches ¥45.7 Billion Share Buyback to Boost ROE and Capital Efficiency

SHIMAMURA Co., Ltd. has resolved to repurchase up to 4.3 million of its own shares, equivalent to 5.85% of its issued shares excluding treasury stock, through an off-auction share repurchase transaction (ToSTNeT-3) on the Tokyo Stock Exchange at a price of ¥10,620 per share, with a total acquisition value capped at approximately ¥45.7 billion. The buyback, scheduled for January 27, 2026, is positioned as a key element of the company’s shareholder return and capital efficiency strategy under its 2027 Medium-Term Management Plan, aimed at achieving a return on equity of at least 9%, improving per-share management indicators, and supporting sustainable growth and long-term corporate value, in line with the Tokyo Stock Exchange’s calls for management conscious of capital costs and stock prices.

The most recent analyst rating on (JP:8227) stock is a Buy with a Yen11790.00 price target. To see the full list of analyst forecasts on SHIMAMURA Co stock, see the JP:8227 Stock Forecast page.

Shimamura Overhauls Executive Lineup and Organization to Bolster E-Commerce and Overseas Expansion

SHIMAMURA Co., Ltd. has announced a broad reshuffle of its executive officer lineup effective February 21, 2026, reassigning key leaders to sharpen focus on e-commerce, overseas operations, and core retail formats such as Avail and Divalo. The company has appointed new executive officers to lead Avail, Divalo, and systems operations, shifted responsibility for e-commerce to Director and Executive Officer Hajime Ueda, and reassigned overseas business oversight to Executive Officer Tsuyoki Saito, while Executive Officer Kiyoshi Fujioka will step down. In parallel, SHIMAMURA is restructuring its organizational framework by renaming the Store Management Department to the Store Support Department, reorganizing human resources and education functions into new Human Resources Development and Labor Support Departments, and creating dedicated Overseas Business Merchandise and Overseas Business Operation Departments, moves that signal an effort to strengthen governance, support store operations, and better manage its growing international and digital businesses.

The most recent analyst rating on (JP:8227) stock is a Buy with a Yen11790.00 price target. To see the full list of analyst forecasts on SHIMAMURA Co stock, see the JP:8227 Stock Forecast page.

SHIMAMURA Announces Three-for-One Stock Split and Expanded Shareholder Benefits

SHIMAMURA Co., Ltd. has approved a three-for-one stock split of its common shares, effective February 21, 2026, aimed at lowering the minimum investment amount, improving share liquidity and broadening its investor base. The total number of issued shares will rise from 73,826,598 to 221,479,794, and the company will simultaneously amend its Articles of Incorporation to increase authorized shares from 240 million to 720 million, positioning itself for greater capital market flexibility while keeping share capital unchanged. In tandem with the split, SHIMAMURA is expanding the tiers of its shareholder benefit program so that post-split the same economic value of shopping vouchers is preserved for holders at and above the new, higher share-count thresholds, thereby maintaining the incentive for medium- to long-term individual shareholders while adapting the scheme to the larger number of shares outstanding. Dividends and benefits tied to the February 20, 2026 record date will continue to be calculated on a pre-split share basis, clarifying treatment for existing investors during the transition.

The most recent analyst rating on (JP:8227) stock is a Sell with a Yen8800.00 price target. To see the full list of analyst forecasts on SHIMAMURA Co stock, see the JP:8227 Stock Forecast page.

Shimamura Posts Solid Nine-Month Gain and Confirms Higher Dividend Payout

SHIMAMURA Co., Ltd. reported solid results for the nine months ended November 20, 2025, with net sales rising 5.6% year on year to ¥525.5 billion and profit attributable to owners of parent increasing 4.5% to ¥35.1 billion, reflecting steady growth in earnings per share and comprehensive income. The retailer’s financial position remains robust, with total assets of ¥616.9 billion and an equity-to-asset ratio of 84.7%, and the company confirmed its dividend plan for the current fiscal year—raising the annual payout forecast to ¥205 per share—while leaving its full-year earnings forecast unchanged, projecting 4.1% growth in net sales and a 2.3% increase in profit attributable to owners of parent, signaling confidence in sustained but moderate expansion.

The most recent analyst rating on (JP:8227) stock is a Sell with a Yen8800.00 price target. To see the full list of analyst forecasts on SHIMAMURA Co stock, see the JP:8227 Stock Forecast page.