Shinwa Co.,Ltd. (3447) AI Stock Analysis

• Market Cap: ¥11.36B
• Dividend Yield: 3.81%
• Average Volume (3M): 60.91K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.40
• Revenue Growth: 30.25%
• EPS Growth: 104.29%
• Country: JP
• Employees: 144
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 32.07
• Shares Outstanding: 14,103,000
• 10 Day Avg. Volume: 37,520
• 30 Day Avg. Volume: 60,910
• PEG Ratio: 0.08
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.59
• P/FCF Ratio: -12.08
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: ¥907.00 ▲(9.94% Upside)

Shinwa Co.,Ltd. demonstrates strong valuation metrics with an attractive P/E ratio and dividend yield, contributing positively to the overall score. However, financial performance is hindered by declining net profitability and increasing debt levels, which are significant risks. Technical analysis suggests a lack of strong momentum, with potential overbought conditions. These factors combined result in a moderate overall stock score.

Shinwa Co.,Ltd. Business Overview & Revenue Model

Company Description

Shinwa Co., Ltd. (3447) is a Japanese company primarily engaged in the manufacturing and distribution of precision measuring instruments and tools. Operating in the industrial and construction sectors, the company offers a wide range of products, including calipers, micrometers, and other measuring devices. Shinwa is known for its commitment to quality and innovation, catering to both domestic and international markets with a focus on enhancing measurement accuracy and efficiency.

How the Company Makes Money

Shinwa Co., Ltd. generates revenue through the sale of its precision measuring tools and instruments to various industries, including manufacturing, construction, and engineering. The company's revenue model is primarily based on direct sales of its products through both retail and wholesale channels. Key revenue streams include the sales of traditional measuring tools, digital measurement devices, and specialized instruments tailored for specific industrial applications. Additionally, Shinwa may engage in partnerships with distributors and retailers to expand its market reach, which contributes to its earnings. The company's focus on innovation and quality also allows it to maintain a competitive edge, attracting clients looking for reliable measurement solutions.

Shinwa Co.,Ltd. Financial Statement Overview

Summary

Shinwa Co.,Ltd. exhibits strong sales performance with robust revenue growth and operational effectiveness. However, declining net profitability, increasing debt levels, and cash flow concerns highlight potential financial risks.

Income Statement

Shinwa Co.,Ltd. demonstrates a solid gross profit margin with a recent increase in total revenue, indicating strong sales performance. However, net profit margins have seen a decline over the years, which could be a concern. EBIT and EBITDA margins remain healthy, showing consistent operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a balanced capital structure. Despite a stable equity ratio, there's a noticeable increase in total debt, which might affect financial leverage. Return on equity is reasonable, supporting shareholder value creation.

Cash Flow

Shinwa Co.,Ltd. faces challenges in cash flow, with declining free cash flow and a negative growth rate in recent years. The operating cash flow to net income ratio suggests some stability, but the free cash flow to net income ratio highlights potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.99B	17.50B	12.68B	14.76B	16.06B	13.89B
Gross Profit	4.67B	4.42B	2.80B	3.50B	4.12B	3.62B
EBITDA	2.53B	2.22B	1.29B	2.10B	2.68B	2.51B
Net Income	1.15B	975.04M	409.67M	1.01B	1.45B	1.23B
Balance Sheet
Total Assets	31.95B	29.97B	20.68B	21.29B	22.52B	22.24B
Cash, Cash Equivalents and Short-Term Investments	3.94B	2.91B	1.84B	2.06B	3.46B	4.74B
Total Debt	12.37B	11.49B	3.45B	4.24B	5.22B	5.68B
Total Liabilities	16.17B	14.12B	5.36B	5.74B	7.36B	7.79B
Stockholders Equity	15.77B	15.84B	15.31B	15.55B	15.13B	14.38B
Cash Flow
Free Cash Flow	-324.48M	-856.68M	1.35B	32.74M	23.45M	2.66B
Operating Cash Flow	155.59M	848.92M	1.97B	686.10M	835.91M	2.89B
Investing Cash Flow	-1.80B	-4.32B	-626.12M	-659.78M	-817.86M	-181.33M
Financing Cash Flow	1.65B	4.54B	-1.57B	-1.42B	-1.31B	-1.10B

Shinwa Co.,Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 825.00
• 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:3447, the sentiment is Negative. The current price of 825 is below the 20-day moving average (MA) of 841.55, below the 50-day MA of 857.04, and above the 200-day MA of 768.98, indicating a neutral trend. The MACD of -3.94 indicates Positive momentum. The RSI at 39.88 is Neutral, neither overbought nor oversold. The STOCH value of 43.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3447.

Shinwa Co.,Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5644	―	¥12.22B	6.04	―	3.41%	0.52%	-3.96%
6998	―	¥6.97B	10.12	―	3.31%	4.95%	24.62%
6497	―	¥7.91B	9.68	―	2.95%	9.38%	95.55%
3435	―	¥9.77B	9.05	―	3.05%	-0.77%	-23.54%
1787	―	¥12.72B	12.45	―	5.33%	9.55%	44.98%
3447	―	¥11.36B	9.97	―	3.81%	30.25%	104.29%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%