Shokubun Co., Ltd. (9969) AI Stock Analysis

• Market Cap: ¥3.89B
• Dividend Yield: 1.98%
• Average Volume (3M): 6.05K
• Price to Earnings (P/E): 51.0
• Beta (1Y): 0.29
• Revenue Growth: -0.91%
• EPS Growth: N/A
• Country: JP
• Employees: 374
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.40
• Shares Outstanding: 17,691,670
• 10 Day Avg. Volume: 5,950
• 30 Day Avg. Volume: 6,046
• PEG Ratio: -0.15
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -2.60K
• 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: 52 Neutral
• Price Target: ¥251.00 ▲(0.40% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and negative profitability. Technical analysis indicates weak momentum, while a high P/E ratio suggests overvaluation. The dividend yield offers limited compensation for these risks.

Positive Factors

Stable Equity Ratio

A stable equity ratio indicates that the company maintains a balanced capital structure, which can help sustain financial stability despite other challenges.

Market Diversification

Diversified market presence across multiple industries reduces dependency on a single sector, potentially stabilizing revenue streams against sector-specific downturns.

Strategic Partnerships

Partnerships with industry leaders can enhance market penetration and provide collaborative opportunities for innovation, supporting long-term growth.

Negative Factors

Declining Revenues

Continued revenue decline can limit growth potential and strain resources, necessitating strategic adjustments to stabilize and reverse this trend.

Negative Profitability

Sustained negative profitability can erode shareholder value and limit reinvestment capacity, requiring effective cost management and revenue enhancement strategies.

Weak Cash Flow Generation

Weak cash flow generation impacts liquidity and financial flexibility, potentially hindering the company's ability to invest in growth opportunities or manage debt.

Shokubun Co., Ltd. Business Overview & Revenue Model

Company Description

Shokubun Co., Ltd. (9969) is a Japanese company primarily engaged in the manufacturing and distribution of electronic components and systems. Operating within the technology sector, the company specializes in the production of high-quality semiconductor devices, integrated circuits, and other electronic materials that cater to various industries, including consumer electronics, automotive, and telecommunications. With a commitment to innovation and quality, Shokubun Co., Ltd. aims to provide cutting-edge solutions that meet the evolving needs of its customers.

How the Company Makes Money

Shokubun Co., Ltd. generates revenue through the sale of its electronic components and systems to a diverse range of industries. The company's primary revenue streams include the direct sale of semiconductors and integrated circuits to manufacturers and OEMs (original equipment manufacturers), as well as providing technical support and customization services for its products. Additionally, strategic partnerships with major players in the technology and automotive sectors enhance its market reach and contribute to its earnings. The company may also benefit from research and development grants or collaborations, which can further supplement its income.

Shokubun Co., Ltd. Financial Statement Overview

Summary

Shokubun Co., Ltd. is facing financial challenges with declining revenues and negative profitability. Despite a stable equity ratio, leverage remains a concern. Cash flow generation is weak, impacting liquidity and financial flexibility. Continued focus on cost control and revenue stabilization is crucial for improvement.

Income Statement

The company has experienced declining revenues and profitability over recent years, with a notable decrease in total revenue and net income from 2023 to 2025. The gross profit margin remains relatively stable, but the net profit margin is negative, indicating a challenging profitability environment. EBITDA margin is low, suggesting limited operational efficiency improvements.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating manageable leverage. However, there is a decline in total assets and stockholders’ equity over recent years. The equity ratio remains stable, providing some financial stability despite a reduction in cash and equivalents.

Cash Flow

Operating cash flow has significantly decreased, reflecting reduced cash generation capability. Free cash flow is negative, and the free cash flow to net income ratio indicates challenges in converting income to cash flow. Cash flow from financing activities shows a consistent outflow, which could pressure liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.63B	6.06B	6.39B	7.02B	6.88B	6.84B
Gross Profit	1.76B	2.26B	2.43B	2.72B	2.73B	2.75B
EBITDA	186.77M	180.12M	214.64M	451.18M	369.92M	267.53M
Net Income	-21.01M	-69.95M	-15.89M	268.11M	221.90M	194.23M
Balance Sheet
Total Assets	5.18B	5.21B	5.53B	5.71B	5.84B	5.86B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.39B	1.69B	1.86B	2.06B	2.10B
Total Debt	1.63B	2.07B	2.21B	2.41B	2.65B	2.76B
Total Liabilities	2.76B	2.78B	2.94B	3.08B	3.33B	3.55B
Stockholders Equity	2.42B	2.43B	2.60B	2.63B	2.51B	2.31B
Cash Flow
Free Cash Flow	0.00	-1.41M	153.32M	14.70M	131.51M	334.95M
Operating Cash Flow	0.00	13.50M	219.03M	83.89M	174.40M	388.16M
Investing Cash Flow	0.00	-15.64M	-63.91M	314.80M	19.48M	619.11M
Financing Cash Flow	0.00	-294.53M	-326.11M	-605.09M	-230.56M	530.57M

Shokubun Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 250.00
• 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:9969, the sentiment is Positive. The current price of 250 is below the 20-day moving average (MA) of 250.10, below the 50-day MA of 250.28, and above the 200-day MA of 246.44, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9969.

Shokubun Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3317	71 Outperform	¥4.28B	11.61	―	0.98%	10.67%	36.51%
3372	66 Neutral	¥3.12B	9.53	―	―	4.50%	11.40%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
3358	57 Neutral	¥3.08B	155.92	―	―	3.85%	-59.79%
3067	55 Neutral	¥4.05B	53.15	―	―	-2.70%	98.30%
9969	52 Neutral	¥3.89B	50.99	―	1.98%	-0.91%	―
2762	46 Neutral	¥4.10B	-3.97	―	―	3.26%	4.62%