SHIMAMURA Co (8227) AI Stock Analysis

• Market Cap: ¥767.57B
• Dividend Yield: 2.02%
• Average Volume (3M): 233.38K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.21
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: JP
• Employees: 3,157
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 166.58
• Shares Outstanding: 73,826,600
• 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: ¥8,800.00
• Price Target Upside: -20.72% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥11,140.00 ▲(0.36% Upside)

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 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2020
Income Statement
Total Revenue	666.74B	636.50B	617.52B	584.77B	543.56B
Gross Profit	226.16B	219.97B	211.39B	200.08B	185.04B
EBITDA	65.34B	61.23B	59.19B	55.33B	43.50B
Net Income	41.88B	40.08B	38.02B	35.43B	26.16B
Balance Sheet
Total Assets	567.14B	533.81B	502.55B	474.81B	451.80B
Cash, Cash Equivalents and Short-Term Investments	297.00B	270.83B	263.16B	234.43B	211.49B
Total Debt	0.00	0.00	0.00	0.00	0.00
Total Liabilities	66.16B	62.40B	62.50B	63.82B	67.41B
Stockholders Equity	500.98B	471.41B	440.05B	411.00B	384.39B
Cash Flow
Free Cash Flow	41.13B	33.53B	37.17B	28.96B	37.95B
Operating Cash Flow	52.80B	41.16B	41.55B	37.21B	46.23B
Investing Cash Flow	4.65B	-87.20B	2.33B	143.14B	-111.32B
Financing Cash Flow	-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
7564	74 Outperform	¥520.67B	28.32	―	1.04%	10.84%	16.83%
8214	72 Outperform	¥153.88B	17.90	―	4.49%	2.21%	4.36%
2726	70 Outperform	¥296.60B	19.28	―	1.46%	12.02%	-15.70%
8227	68 Neutral	¥767.57B	17.66	8.78%	2.02%	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

SHIMAMURA Co Corporate Events

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.