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

• Market Cap: ¥84.33B
• Dividend Yield: 4.17%
• Average Volume (3M): 87.76K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 0.28
• Revenue Growth: 3.78%
• EPS Growth: -20.91%
• Country: JP
• Employees: 1,464
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 49.56
• Shares Outstanding: 76,192,955
• 10 Day Avg. Volume: 84,020
• 30 Day Avg. Volume: 87,760
• PEG Ratio: -0.24
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 22.23
• 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: ¥1,242.96
• Price Target Upside: 9.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: ¥1,243.00 ▲(9.23% Upside)

SHIZUOKA GAS CO. LTD. has a stable financial structure with low leverage, but faces challenges in revenue growth and profitability. The technical indicators suggest weak momentum, while the valuation is attractive with a reasonable P/E ratio and a strong dividend yield. The stock's overall score reflects these mixed factors, with financial performance and valuation being the most significant contributors.

SHIZUOKA GAS CO. LTD. Business Overview & Revenue Model

Company Description

Shizuoka Gas Co., Ltd. (9543) is a Japanese energy company primarily engaged in the supply of city gas and related services. Based in Shizuoka, Japan, the company operates within the utilities sector, focusing on the production, distribution, and sale of natural gas to residential, commercial, and industrial customers. Additionally, Shizuoka Gas is involved in the development of energy solutions, the sale of liquefied natural gas (LNG), and the provision of associated equipment and services.

How the Company Makes Money

Shizuoka Gas Co., Ltd. generates revenue through multiple streams, primarily from the sale of natural gas to various customer segments, including residential, commercial, and industrial users. The company also earns income from the sale of liquefied natural gas (LNG) and the provision of energy-related services and equipment. Key revenue drivers include the volume of gas sold, pricing strategies, and the efficiency of its distribution network. Shizuoka Gas may also engage in strategic partnerships to enhance its service offerings and expand its market reach, contributing to its overall earnings.

SHIZUOKA GAS CO. LTD. Financial Statement Overview

Summary

SHIZUOKA GAS CO. LTD. shows a stable financial structure with low leverage and a strong equity base. However, challenges in revenue growth, declining net profit margins, and reduced free cash flow growth indicate areas of concern. The company needs to focus on enhancing revenue growth and profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	200.47B	202.24B	214.00B	207.32B	132.99B	121.32B
Gross Profit	40.04B	39.73B	47.57B	37.67B	32.66B	34.20B
EBITDA	19.60B	20.03B	29.59B	18.32B	15.04B	15.93B
Net Income	6.99B	8.78B	14.11B	5.97B	4.12B	3.71B
Balance Sheet
Total Assets	171.18B	170.20B	154.71B	159.50B	124.00B	118.18B
Cash, Cash Equivalents and Short-Term Investments	26.59B	36.25B	35.62B	27.78B	13.66B	31.73B
Total Debt	18.34B	16.62B	18.31B	32.17B	6.62B	6.08B
Total Liabilities	39.98B	44.68B	40.29B	59.89B	31.85B	30.51B
Stockholders Equity	123.87B	118.17B	107.44B	92.93B	86.40B	82.18B
Cash Flow
Free Cash Flow	0.00	3.61B	23.72B	-8.30B	-16.12B	11.17B
Operating Cash Flow	0.00	10.98B	37.76B	4.12B	-6.91B	20.30B
Investing Cash Flow	0.00	-8.68B	-14.12B	-14.07B	-9.80B	-8.43B
Financing Cash Flow	0.00	-1.85B	-15.91B	23.55B	-1.41B	-4.49B

SHIZUOKA GAS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1138.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1138 is below the 20-day moving average (MA) of 1140.90, below the 50-day MA of 1152.26, and above the 200-day MA of 1087.25, indicating a neutral trend. The MACD of -4.23 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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	81 Outperform	¥60.40B	5.45	―	2.76%	1.12%	-3.79%
9536	74 Outperform	€71.46B	8.92	8.21%	3.63%	4.02%	47.09%
9537	73 Outperform	¥17.19B	6.96	―	2.24%	5.66%	―
9539	71 Outperform	¥38.33B	11.25	―	1.79%	1.39%	―
9543	70 Outperform	¥84.33B	12.26	6.08%	4.17%	3.78%	-20.91%
9533	69 Neutral	¥433.62B	15.19	6.41%	1.93%	7.62%	35.76%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

SHIZUOKA GAS CO. LTD. Corporate Events

Shizuoka Gas Co., Ltd. Announces Treasury Stock Disposal for Employee Incentive Plan

Shizuoka Gas Co., Ltd. has announced a resolution to dispose of treasury stock as part of a restricted stock incentive plan for its Employee Shareholding Association. This initiative aims to promote employee wealth creation and align their interests with shareholders by providing them with the opportunity to acquire company shares. The plan is designed to enhance corporate value and employee motivation, with a potential dilution effect of 0.05% of total shares.

Shizuoka Gas Revises Year-End Dividend Forecast for FY2025

Shizuoka Gas Co., Ltd. has announced a revision to its year-end dividend forecast for the fiscal year ending December 31, 2025. The company has increased the dividend by 1 yen per share, resulting in an expected annual dividend of 42 yen per share. This decision reflects the company’s dividend policy and business forecast, indicating a positive outlook for stakeholders.

SHIZUOKA GAS Revises 2025 Forecast: Profitability Expected to Rise

SHIZUOKA GAS CO., LTD. has revised its full-year consolidated business forecast for 2025, anticipating a decrease in net sales but an increase in operating and ordinary profits due to lower raw material costs influenced by crude oil prices and exchange rates. This revision suggests a positive impact on the company’s profitability, despite some downward pressures, indicating a stronger financial performance than initially expected.

Shizuoka Gas Reports Mixed Results for First Half of 2025

Shizuoka Gas Co., Ltd. reported its consolidated business results for the first half of 2025, showing a slight decline in net sales by 1.7% compared to the previous year. Despite this, the company managed a marginal increase in operating profit by 0.3%. However, ordinary profit saw a significant drop of 25.1%. The company revised its dividend forecast and business outlook, indicating a cautious approach amidst changing market conditions.

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.