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

• Market Cap: ¥80.40B
• Dividend Yield: 3.78%
• Average Volume (3M): 113.62K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.33
• Revenue Growth: 4.77%
• EPS Growth: 44.40%
• Country: JP
• Employees: 1,464
• Sector: Utilities
• Sector Strength: 66
• Industry: Regulated Gas
• EPS (TTM): 39.88
• Shares Outstanding: 76,192,955
• 10 Day Avg. Volume: 136,760
• 30 Day Avg. Volume: 113,623
• PEG Ratio: 0.30
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.85
• 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

• Rating: 72 Outperform
• Price Target: ¥1,200.00 ▲(12.15%Upside)

SHIZUOKA GAS CO. LTD. scores well on valuation, with a low P/E ratio and high dividend yield, making it attractive to value and income investors. However, the financial performance is weighed down by declines in revenue and free cash flow. Technical analysis reveals neutral to bearish momentum, indicating potential short-term challenges.

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 Co. Ltd. generates revenue primarily through the sale and distribution of natural gas and LNG. The company's key revenue streams include the supply of gas to residential households, industrial clients, and commercial entities within its service area. Revenue is also derived from the installation and maintenance of gas-related equipment, which not only supports the main gas supply business but also enhances customer satisfaction and safety. Furthermore, Shizuoka Gas Co. Ltd. engages in energy-related services and projects, such as developing energy-saving technologies and participating in infrastructure projects, which contribute additional income. The company may form strategic partnerships to expand its service offerings and infrastructure, thereby increasing its market presence and potential revenue opportunities.

SHIZUOKA GAS CO. LTD. Financial Statement Overview

Summary

SHIZUOKA GAS CO. LTD. shows a stable financial structure with a strong balance sheet characterized by low leverage and a stable equity base. However, challenges are present in revenue growth, net profit margins, and free cash flow, indicating areas that need improvement for better financial health.

Income Statement

SHIZUOKA GAS CO. LTD. has shown a mixed performance in its income statement. The company experienced a decline in revenue from 214,004 million JPY in 2023 to 202,237 million JPY in 2024, resulting in a negative revenue growth rate of -5.49%. However, the gross profit margin improved slightly from 22.22% in 2023 to 19.64% in 2024, indicating some cost efficiency. The net profit margin also decreased from 6.59% to 4.34%, reflecting a decline in profitability. Overall, while cost management appears to be a strength, the company faces challenges in maintaining revenue growth and profitability.

Balance Sheet

The balance sheet of SHIZUOKA GAS CO. LTD. highlights financial stability with a strong equity base. The debt-to-equity ratio improved from 0.17 in 2023 to 0.14 in 2024, indicating reduced leverage. The return on equity (ROE) decreased from 13.13% to 7.43%, suggesting a decline in profitability relative to equity. The equity ratio improved from 69.45% to 69.41%, demonstrating a stable capital structure. While the company maintains low leverage and a stable equity base, the reduced ROE points to challenges in generating returns on equity.

Cash Flow

SHIZUOKA GAS CO. LTD.'s cash flow statement reveals mixed cash flow performance. The free cash flow decreased significantly from 23,717 million JPY in 2023 to 3,612 million JPY in 2024, indicating a negative free cash flow growth rate. The operating cash flow to net income ratio decreased from 2.68 to 1.25, showing reduced efficiency in converting net income to cash. Despite these challenges, the company maintains positive operating cash flow, which is a positive indicator of operational cash generation abilities.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	202.24B	214.00B	207.32B	132.99B	121.32B
Gross Profit	39.73B	47.57B	37.67B	32.66B	34.20B
EBITDA	20.03B	29.59B	17.37B	13.45B	15.39B
Net Income	8.78B	14.11B	5.97B	4.12B	3.71B
Balance Sheet
Total Assets	170.20B	154.71B	159.50B	124.00B	118.18B
Cash, Cash Equivalents and Short-Term Investments	36.25B	35.62B	27.78B	13.66B	31.73B
Total Debt	16.62B	18.31B	30.39B	5.12B	4.37B
Total Liabilities	44.68B	40.29B	59.89B	31.85B	30.51B
Stockholders Equity	118.17B	107.44B	92.93B	86.40B	82.18B
Cash Flow
Free Cash Flow	3.61B	23.72B	-8.30B	-16.12B	11.17B
Operating Cash Flow	10.98B	37.76B	4.12B	-6.91B	20.30B
Investing Cash Flow	-8.68B	-14.12B	-14.07B	-9.80B	-8.43B
Financing Cash Flow	-1.85B	-15.91B	23.55B	-1.41B	-4.49B

SHIZUOKA GAS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1070.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 1070 is above the 20-day moving average (MA) of 1058.73, below the 50-day MA of 1076.67, and above the 200-day MA of 1033.54, indicating a bullish trend. The MACD of 2.91 indicates Negative momentum. The RSI at 64.14 is Neutral, neither overbought nor oversold. The STOCH value of 71.94 is Neutral, 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
9534	78 Outperform	¥52.52B	5.02		3.04%	-2.06%	-10.54%
9536	74 Outperform	¥66.24B	10.41	6.29%	3.91%	-0.74%	3.34%
9543	72 Outperform	¥80.40B	8.87	7.82%	3.78%	4.77%	44.40%
9537	71 Outperform	¥16.85B	8.37		2.27%	0.59%	―
9533	67 Neutral	¥406.81B	16.45	5.51%	1.93%	3.64%	-3.86%
Sector *	67 Neutral	$16.52B	17.14	4.47%	3.56%	4.76%	6.13%
9539	64 Neutral	¥35.56B	10.81		2.02%	0.03%	―

SHIZUOKA GAS CO. LTD. Corporate Events

Shizuoka Gas Expands into U.S. Shale Gas Market

Shizuoka Gas Co., Ltd. has completed the acquisition of interests in a shale gas development project in the United States through its newly established subsidiary, Shizugas America. This strategic move is part of the company’s ‘2030 Vision’ to expand its business globally and contribute to a sustainable future. The acquisition, initially priced at $130 million, was finalized at $127 million after adjustments. The impact on the company’s financial results for the fiscal year ending December 2025 is currently under review.

Shizuoka Gas Reports Mixed Financial Results for Q1 2025

Shizuoka Gas Co., Ltd. reported its consolidated business results for the first quarter of 2025, showing a 3.1% increase in net sales compared to the previous year. Despite this, the company experienced a significant decline in operating and ordinary profits, with a 69.0% and 19.6% decrease, respectively. The company’s financial position remains stable with a slight increase in total assets and net assets. The forecast for the full term of 2025 anticipates a modest growth in net sales but a decrease in profits, reflecting ongoing challenges in the market.

Shizuoka Gas Completes Treasury Stock Disposal for Compensation

Shizuoka Gas Co., Ltd. has completed the payment procedures for the disposal of its treasury stock as restricted stock compensation, as resolved by its Board of Directors. This disposal involves 29,012 shares of common stock at a price of 1,146 yen per share, totaling 33,247,752 yen, and is allocated to directors and operating officers of the company.