Shoei Yakuhin Co., Ltd. (3537) AI Stock Analysis

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Shoei Yakuhin Co., Ltd.

(TSE/TYO:3537)

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Rating:72Outperform

Price Target:JPY 1,919.00▲(14.98% Upside)

Action:reiterated

Date:08/17/26

The score is driven primarily by strong balance-sheet quality and attractive valuation (low P/E with a decent dividend). Offsetting these positives are thin operating margins and inconsistent cash-flow conversion, while technicals are supportive but appear overextended near-term (RSI ~70, high Stochastic).

Positive Factors

Very low and improving leverageMinimal leverage and declining debt reduce financial risk, interest burden and refinancing dependence. This conservative capital structure gives Shoei Yakuhin flexibility to withstand operating volatility and fund its healthcare distribution activities through changing market conditions.

Negative Factors

Persistently thin operating marginsLow margins leave limited room to absorb higher procurement, logistics or personnel costs. They also make earnings sensitive to pricing pressure and competitive dynamics, reducing the durability of profits even if revenue continues to grow modestly.

Shoei Yakuhin Co., Ltd. (3537) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 5.75B
Dividend Yield: 2.67%
Average Volume (3M): 4,523
Price to Earnings (P/E): 9.1
Beta (1Y): 0.37
Revenue Growth: 12.83%
EPS Growth: 37.02%
Country: Japan
Employees: 80
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Shoei Yakuhin Co., Ltd. Business Overview & Revenue Model

Company Description

Shoei Yakuhin Co.,Ltd., established in 1937 and based in Osaka, Japan, operates as a global trading company with a presence in Japan, China, Thailand, and Singapore. The firm specializes in distributing a wide array of products across three main cate...

How the Company Makes Money

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Shoei Yakuhin Co., Ltd. Financial Statement Overview

Summary

Overall fundamentals are stable and conservatively financed. The balance sheet is a clear strength with very low and improving leverage, but profitability remains thin (gross margin ~8%, operating/net margins ~2%) and cash-flow quality is the key concern given multiple years of negative operating cash flow and uneven free cash flow.

Income Statement

64Positive

Balance Sheet

86Very Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	27.99B	26.92B	25.01B	22.60B	24.53B	21.15B
Gross Profit	2.29B	2.16B	2.10B	1.89B	1.89B	1.65B
EBITDA	604.28M	518.14M	572.51M	454.11M	502.38M	324.17M
Net Income	627.10M	557.06M	527.41M	491.91M	484.56M	578.64M
Balance Sheet
Total Assets	18.89B	17.81B	17.10B	16.82B	14.86B	14.55B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.45B	1.91B	2.19B	1.53B	1.15B
Total Debt	170.00M	150.00M	600.00M	600.00M	650.00M	706.35M
Total Liabilities	9.25B	8.39B	8.16B	8.68B	7.49B	7.59B
Stockholders Equity	9.63B	9.42B	8.94B	8.14B	7.37B	6.95B
Cash Flow
Free Cash Flow	0	101.38M	-179.41M	817.71M	634.51M	-399.94M
Operating Cash Flow	0	103.53M	-171.65M	818.26M	644.57M	-398.37M
Investing Cash Flow	0	317.13M	-21.01M	-18.43M	-30.11M	382.73M
Financing Cash Flow	0	-583.02M	-129.27M	-172.14M	-269.32M	-62.48M

Shoei Yakuhin Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price1669.00

Price Trends

50DMA1712.86Negative

100DMA1688.97Negative

200DMA1630.86Positive

Market Momentum

MACD-11.07Negative

RSI47.75Neutral

STOCH71.35Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3537, the sentiment is Negative. The current price of 1669.00 is below the 20-day moving average (MA) of 1670.55, below the 50-day MA of 1712.86, and above the 200-day MA of 1630.86, indicating a neutral trend. The MACD of -11.07 indicates Negative momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 71.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3537.

Shoei Yakuhin Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:3537 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:4990	75Outperform	JPY 5.18B	8.61	―	2.04%	0.03%	30.72%
JP:3537	72Outperform	JPY 5.95B	9.11	―	2.67%	12.83%	37.02%
JP:4119	71Outperform	JPY 9.51B	6.73	―	1.98%	5.41%	―
JP:5695	64Neutral	JPY 7.64B	23.36	―	4.13%	-6.04%	-26.75%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
JP:4234	48Neutral	JPY 10.72B	6.03	7.18%	2.12%	5.69%	512.03%
JP:4406	46Neutral	JPY 7.90B	5.88	―	2.09%	2.22%	149.18%

* General Sector Average

Performance Comparison

JP:3537 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:3537	Shoei Yakuhin Co., Ltd.	1669.00	181.86	12.23%
JP:4234	Sun A. Kaken Co., Ltd.	991.00	325.10	48.82%
JP:4119	Nippon Pigment Company, Limited	6150.00	2845.67	86.12%
JP:4406	New Japan Chemical Co., Ltd.	215.00	4.24	2.01%
JP:4990	Showa Chemical Industry Co., Ltd.	491.00	16.81	3.54%
JP:5695	Powdertech Co., Ltd.	2420.00	252.26	11.64%

Shoei Yakuhin Co., Ltd. Corporate Events

Shoei Yakuhin Posts Strong Q1 Earnings with Double-Digit Profit Growth

Aug 6, 2026

Shoei Yakuhin Co., Ltd. reported strong consolidated results for the first quarter of the fiscal year ending March 2027, with net sales rising 15.9% year on year to ¥7,817 million and operating profit climbing 63.1% to ¥222 million. Ordinary profit i...

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

Shoei Yakuhin Co., Ltd. AI Stock Analysis