SHIZUOKA GAS CO. LTD. (9543) AI Stock Analysis

• Market Cap: ¥112.86B
• Dividend Yield: 3.89%
• Average Volume (3M): 132.08K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.37
• Revenue Growth: 1.08%
• EPS Growth: 37.11%
• Country: JP
• Employees: 1,464
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 10.86
• Shares Outstanding: 76,192,955
• 10 Day Avg. Volume: 168,920
• 30 Day Avg. Volume: 132,083
• PEG Ratio: 0.64
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 19.23
• 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: 75 Outperform
• Price Target: ¥1,560.00 ▲(30.00% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial performance (strong balance sheet and improved 2025 operating results) and supportive valuation (low P/E and ~3.1% yield). Technicals are constructive but tempered by overbought signals (high RSI/Stoch), which adds near-term risk.

Positive Factors

Conservative balance sheet

Very low leverage and steady equity growth give the company financial resilience. This supports capital spending, withstands demand shocks, and preserves borrowing capacity for strategic investments or regulatory timing, which is important for a capital-intensive utility over the next 2–6 months and beyond.

Rebound in 2025 revenue and operating profit

A material revenue rebound and improved operating margin indicate demand recovery and better operational leverage. For a regulated gas provider, this suggests tariff recovery or volume normalization, bolstering medium-term earnings stability and cash generation potential if sustained.

Stable regulated gas franchise

As the local city-gas supplier, the company benefits from captive, diversified end-user demand and regulated frameworks that dampen revenue volatility. This structural business model yields predictable base demand and tariff mechanisms, supporting durable revenue visibility and credit stability.

Negative Factors

Thin, volatile free cash flow

Low FCF and weak profit-to-free-cash conversion limit the firm's ability to self-fund capex, return cash to shareholders, or accelerate strategic projects. Multi-year swings in FCF increase execution risk and make financing timing and dividend sustainability more uncertain over the medium term.

Margin variability and lower margins vs peak

Earnings margins have softened from 2023 highs, signaling exposure to input cost moves, tariff lag, or operational pressures. Persistently lower margins would erode return on equity and reduce retained earnings, constraining long-term reinvestment and slower balance-sheet improvement.

Regional demand concentration

Heavy reliance on a single prefecture caps addressable market and ties growth to local economic cycles and regional regulatory decisions. Limited geographic diversification raises sensitivity to local demand shocks and constrains long-term organic growth opportunities compared with national peers.

SHIZUOKA GAS CO. LTD. Business Overview & Revenue Model

Company Description

Shizuoka Gas Co., Ltd. produces, supplies, and sells city gas in Japan. It also sells gas appliances; and undertakes contracts for gas related construction works. The company was incorporated in 1910 and is headquartered in Shizuoka, Japan.

How the Company Makes Money

SHIZUOKA GAS generates revenue primarily through the sale of natural gas to its customer base, which includes households, businesses, and industrial clients. The company's revenue model is built on both fixed and variable pricing structures for natural gas, allowing it to capture income from consistent consumption and market fluctuations. Additionally, SHIZUOKA GAS offers energy-related services, such as energy efficiency consulting and technology solutions, which contribute to its revenue. Significant partnerships with local governments and businesses for energy supply contracts further enhance its earnings. The company also invests in innovative technologies and renewable energy initiatives, which can provide additional revenue streams as the energy market evolves.

SHIZUOKA GAS CO. LTD. Financial Statement Overview

Summary

Financials are solid overall: revenue rebounded strongly in 2025 (+36.9% YoY) and profitability remains healthy for a regulated utility, supported by a conservative balance sheet (very low debt-to-equity ~0.14). The main weakness is cash-flow quality—free cash flow is thin in 2025 (~¥4.7B) with low profit-to-FCF conversion (~0.14x) and multi-year volatility.

Income Statement

Revenue expanded materially in 2025 (+36.9% YoY) after a softer 2024 (-5.5%), signaling a re-acceleration but with some volatility. Profitability is solid for a regulated utility profile: 2025 gross margin held ~22.4% and net margin ~5.0%, though both are below the stronger 2023 level (net margin ~6.6%), indicating some margin giveback. Operating profitability improved versus 2024 (EBIT margin ~7.0% vs ~5.1%), but remains below the 2023 peak (~9.4%), suggesting earnings power is good but not consistently compounding year to year.

Balance Sheet

The balance sheet looks conservative with low leverage: debt-to-equity is ~0.14 in 2025 (also ~0.14 in 2024), well improved from 2022 (~0.35). Equity has grown steadily (from ~¥86B in 2021 to ~¥131B in 2025), supporting resilience and financial flexibility. Total debt is manageable and stable in the ~¥17–18B range recently; the main watch item is that profitability/returns have fluctuated in prior years (e.g., higher returns in 2023 than 2024), so maintaining earnings consistency is key to keeping balance-sheet strength translating into shareholder value.

Cash Flow

Cash generation is the most uneven part of the story. Operating cash flow rebounded strongly in 2025 (~¥34.6B) from a weak 2024 (~¥11.0B), and it covered accounting profit at roughly 1.0x in 2025 (better than ~0.46x in 2024). However, free cash flow is thin in 2025 (~¥4.7B) and conversion of profit into free cash flow is low (~0.14x), suggesting elevated investment needs or working-capital swings; this follows prior volatility including negative free cash flow in 2021–2022 and a very strong 2023. Overall, cash flow quality is improving recently but remains less predictable than earnings and the balance sheet.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	200.47B	201.21B	202.24B	214.00B	207.32B	132.99B
Gross Profit	40.04B	45.15B	39.73B	47.57B	37.67B	32.66B
EBITDA	19.60B	23.55B	20.03B	29.59B	18.32B	15.04B
Net Income	6.99B	10.05B	8.78B	14.11B	5.97B	4.12B
Balance Sheet
Total Assets	171.18B	195.87B	170.20B	154.71B	159.50B	124.00B
Cash, Cash Equivalents and Short-Term Investments	26.59B	33.16B	36.25B	35.62B	27.78B	13.66B
Total Debt	18.34B	17.98B	16.62B	18.31B	32.17B	6.62B
Total Liabilities	39.98B	57.17B	44.68B	40.29B	59.89B	31.85B
Stockholders Equity	123.87B	131.32B	118.17B	107.44B	92.93B	86.40B
Cash Flow
Free Cash Flow	0.00	4.70B	3.61B	23.72B	-8.30B	-16.12B
Operating Cash Flow	0.00	34.56B	10.98B	37.76B	4.12B	-6.91B
Investing Cash Flow	0.00	-32.98B	-8.68B	-14.12B	-14.07B	-9.80B
Financing Cash Flow	0.00	-5.46B	-1.85B	-15.91B	23.55B	-1.41B

SHIZUOKA GAS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1200.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9543, the sentiment is Positive. The current price of 1200 is below the 20-day moving average (MA) of 1366.70, below the 50-day MA of 1270.40, and above the 200-day MA of 1149.27, indicating a bullish trend. The MACD of 70.28 indicates Negative momentum. The RSI at 83.57 is Negative, neither overbought nor oversold. The STOCH value of 88.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9543.

SHIZUOKA GAS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9536	76 Outperform	¥96.23B	9.60	9.07%	3.61%	9.39%	77.24%
9543	75 Outperform	¥112.86B	11.41	8.29%	3.89%	1.08%	37.11%
9533	73 Outperform	¥552.76B	19.60	6.03%	1.81%	7.08%	43.50%
9531	72 Outperform	¥2.83T	13.37	11.05%	1.53%	5.72%	148.08%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
8174	64 Neutral	¥341.36B	25.71	21.07%	3.28%	4.45%	53.88%
9532	63 Neutral	¥2.59T	13.96	10.44%	1.98%	1.99%	95.71%

SHIZUOKA GAS CO. LTD. Corporate Events

Shizuoka Gas Lifts Profit and Dividend Despite Flat Sales, Warns of 2026 Earnings Drop

Shizuoka Gas reported consolidated net sales of ¥201.2 billion for the year ended December 31, 2025, down slightly year on year, but saw operating profit jump 36.6% to ¥14.1 billion and profit attributable to owners of parent rise 14.5% to ¥10.0 billion, reflecting improved profitability despite modest top-line pressure. The company strengthened its financial position with higher total assets and net assets, raised its annual dividend to ¥43 per share for 2025, and forecasts essentially flat sales but significantly lower profits in 2026, signaling expectations of margin compression and a more challenging earnings environment even as it targets a modest further dividend increase.

The most recent analyst rating on (JP:9543) stock is a Buy with a Yen1365.00 price target. To see the full list of analyst forecasts on SHIZUOKA GAS CO. LTD. stock, see the JP:9543 Stock Forecast page.

Shizuoka Gas Lifts Profit and Dividend Despite Flat Sales, Warns of 2026 Slowdown

Shizuoka Gas reported consolidated net sales of ¥201.2 billion for the year ended December 31, 2025, down slightly year on year, while operating profit jumped 36.6% to ¥14.1 billion and profit attributable to owners of parent rose 14.5% to ¥10.0 billion. Improved profitability lifted basic earnings per share to ¥133.42 and net assets to ¥138.7 billion, even as the equity ratio eased to 67.0% amid an expanded balance sheet.

Operating cash flow surged to ¥34.6 billion, offset by heavier investing and financing outflows, leaving cash and cash equivalents at ¥32.7 billion at year-end. The company raised its annual dividend to ¥43 per share for 2025 and plans ¥44 for 2026, but it forecasts lower operating and ordinary profits in 2026, signaling a more cautious earnings outlook despite ongoing shareholder returns.

The most recent analyst rating on (JP:9543) stock is a Buy with a Yen1365.00 price target. To see the full list of analyst forecasts on SHIZUOKA GAS CO. LTD. stock, see the JP:9543 Stock Forecast page.

Shizuoka Gas Lifts Year-End Dividend Forecast, Sets Annual Payout at ¥43

Shizuoka Gas Co., Ltd. has announced that its board will propose a year-end dividend of ¥22.50 per share for the fiscal year ended December 31, 2025, with a record date of December 31, 2025, and an effective payment date of March 27, 2026. This year-end payout, to be funded from retained earnings, compares with ¥27.00 per share in the prior year and corresponds to a total dividend outlay of ¥1,695 million.

The company also revised upward its previously announced year-end dividend forecast from ¥21.50 to ¥22.50 per share, raising the planned annual dividend for fiscal 2025 to ¥43.00 per share. While the total dividend amount is lower than the previous fiscal year in absolute yen terms, the higher annual dividend per share versus fiscal 2024 reflects management’s intent to enhance shareholder returns in line with its dividend policy and the year’s financial performance.

The most recent analyst rating on (JP:9543) stock is a Buy with a Yen1365.00 price target. To see the full list of analyst forecasts on SHIZUOKA GAS CO. LTD. stock, see the JP:9543 Stock Forecast page.

Shizuoka Gas Announces FY2025 Results and New Medium-Term Plan

Shizuoka Gas Co., Ltd., a listed Japanese gas utility, has released its financial results for the fiscal year 2025 covering the period from January to December. The disclosure outlines the company’s recent performance and provides investors with an updated view of its current business conditions.

The company also presented a new medium-term management plan for fiscal years 2026 to 2028, signaling its strategic direction for the next three years. Management emphasized that the accompanying forecasts are subject to change depending on future economic and business developments, underscoring the uncertainty surrounding forward-looking estimates.

The most recent analyst rating on (JP:9543) stock is a Buy with a Yen1365.00 price target. To see the full list of analyst forecasts on SHIZUOKA GAS CO. LTD. stock, see the JP:9543 Stock Forecast page.

Shizuoka Gas to Broaden Long-Term Care Business Scope in Articles of Incorporation

Shizuoka Gas Co., Ltd. plans to amend its Articles of Incorporation, with a proposal to be submitted to its 178th Annual General Meeting of Shareholders on March 26, 2026. The change focuses on revising the description of its business purposes to better reflect the scope of services under Japan’s Long-term Care Insurance Act.

The company intends to delete specific references to various in-home nursing care services and instead introduce a broader, more comprehensive clause covering “certain business activities under the Long-term Care Insurance Act.” This update clarifies and streamlines the company’s stated corporate purpose as its group expands into wider business domains, potentially giving it greater flexibility in developing and managing long-term care–related services.

The most recent analyst rating on (JP:9543) stock is a Buy with a Yen1365.00 price target. To see the full list of analyst forecasts on SHIZUOKA GAS CO. LTD. stock, see the JP:9543 Stock Forecast page.

Shizuoka Gas Completes Treasury Stock Disposal for Employee Incentives

Shizuoka Gas Co., Ltd. has completed the payment procedures for the disposal of treasury stock as restricted stock incentives for its Employees Shareholding Association, initially resolved in August 2025. The number of shares and total disposal amount were adjusted due to partial forfeiture, impacting the final figures of the stock incentive plan.

The most recent analyst rating on (JP:9543) stock is a Buy with a Yen1239.00 price target. To see the full list of analyst forecasts on SHIZUOKA GAS CO. LTD. stock, see the JP:9543 Stock Forecast page.