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

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Shinwa Co.,Ltd.

(TSE/TYO:3447)

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Rating:86Outperform

Price Target:JPY 1,067.00▲(18.03% Upside)

Action:reiterated

Date:08/17/26

Shinwa's strong overall score is primarily driven by an exceptionally attractive valuation profile and significant underlying fundamental improvements. A low P/E ratio and a steady dividend yield offer excellent value, while management's aggressive debt reduction and renewed free cash flow generation greatly lower financial risk. Additionally, bullish technical indicators reflect positive market sentiment, confirming the ongoing success of the company's turnaround.

Positive Factors

Improving Revenue and EarningsThe latest annual improvement shows stronger operating performance, with both revenue and earnings expanding materially. If the company can sustain this level of activity, the larger earnings base should support reinvestment, strengthen resilience, and improve its ability to compound results over the next several quarters.

Negative Factors

Uneven Long-Term Revenue and ProfitabilityThe multi-year swings in revenue and profit indicate that recent growth has not yet established a consistently stable earnings pattern. Such uneven performance can make planning and resource allocation harder, while increasing the risk that future results retrace if operating conditions or project outcomes weaken.

Shinwa Co.,Ltd. (3447) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 12.26B
Dividend Yield: 3.98%
Average Volume (3M): 29.58K
Price to Earnings (P/E): 6.7
Beta (1Y): 0.52
Revenue Growth: 9.58%
EPS Growth: 34.98%
Country: Japan
Employees: 358
Sector: Industrials
Sector Strength: 63
Industry: Manufacturing - Metal Fabrication

Shinwa Co.,Ltd. Business Overview & Revenue Model

Company Description

Shinwa Co., Ltd. is a Japanese firm that manufactures and distributes a variety of construction scaffolding and logistical handling equipment. Their product line features several types of scaffolding, including wedge-binding systems and advanced next...

Shinwa Co.,Ltd. Financial Statement Overview

Summary

Shinwa displays a robust financial turnaround, driven by strong top-line expansion, aggressive debt reduction, and a healthy return to positive free cash flow generation.

Income Statement

85Very Positive

Balance Sheet

88Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	20.56B	20.14B	17.50B	12.68B	14.76B	16.06B
Gross Profit	5.52B	5.43B	4.42B	2.80B	3.50B	4.12B
EBITDA	3.08B	3.02B	2.22B	1.29B	2.10B	2.68B
Net Income	1.84B	1.72B	975.04M	409.67M	1.01B	1.45B
Balance Sheet
Total Assets	32.61B	31.98B	29.97B	20.68B	21.29B	22.52B
Cash, Cash Equivalents and Short-Term Investments	2.21B	2.96B	2.91B	1.84B	2.06B	3.46B
Total Debt	10.99B	10.72B	11.49B	3.60B	4.41B	5.22B
Total Liabilities	15.35B	15.07B	14.12B	5.36B	5.74B	7.36B
Stockholders Equity	17.25B	16.91B	15.84B	15.31B	15.55B	15.13B
Cash Flow
Free Cash Flow	0	1.16B	-856.68M	1.35B	32.74M	23.45M
Operating Cash Flow	0	2.30B	848.92M	1.97B	686.10M	835.91M
Investing Cash Flow	0	-1.16B	-4.32B	-626.12M	-659.78M	-817.86M
Financing Cash Flow	0	-1.09B	4.54B	-1.57B	-1.42B	-1.31B

Shinwa Co.,Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price904.00

Price Trends

50DMA954.90Negative

100DMA960.84Negative

200DMA957.29Negative

Market Momentum

MACD-13.91Negative

RSI37.78Neutral

STOCH56.00Neutral

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 904.00 is below the 20-day moving average (MA) of 920.45, below the 50-day MA of 954.90, and below the 200-day MA of 957.29, indicating a bearish trend. The MACD of -13.91 indicates Negative momentum. The RSI at 37.78 is Neutral, neither overbought nor oversold. The STOCH value of 56.00 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

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

JP:3447 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3447	86Outperform	JPY 12.43B	6.66	―	3.98%	9.58%	34.98%
JP:6497	74Outperform	JPY 8.92B	10.90	―	3.27%	16.06%	34.30%
JP:3435	73Outperform	JPY 11.02B	6.04	―	3.03%	6.29%	68.70%
JP:5644	72Outperform	JPY 22.10B	7.73	―	2.13%	1.26%	47.10%
JP:5852	66Neutral	JPY 14.77B	-42.47	―	6.20%	3.80%	-117.78%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JP:5994	40Underperform	JPY 3.75B	-1.23	―	2.90%	3.08%	-260.66%

* Industrials Sector Average

Performance Comparison

JP:3447 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3447	Shinwa Co.,Ltd.	904.00	54.91	6.47%
JP:3435	SANKO TECHNO CO., LTD.	1386.00	172.38	14.20%
JP:5644	Metalart Corporation	7270.00	2933.62	67.65%
JP:5852	Ahresty Corporation	581.00	-129.19	-18.19%
JP:5994	Fine Sinter Co., Ltd.	863.00	-969.57	-52.91%
JP:6497	Hamai Industries Ltd.	1378.00	233.90	20.44%

Shinwa Co.,Ltd. Corporate Events

Shinwa Posts Higher Q1 Profit and Confirms Dividend Outlook

Aug 26, 2026

Shinwa Co., Ltd. reported consolidated revenue of ¥4,941 million for the three months ended June 30, 2026, up 9.2% year on year, with operating profit rising 5.9% to ¥722 million and profit attributable to owners of parent climbing 26.9% to ¥560 mill...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 17, 2026

Shinwa Co.,Ltd. AI Stock Analysis