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Shinhokoku Material Corp.
(5542)
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Rating:66Neutral
Price Target:
¥1,457.00
▲(101.24% Upside)
Action:Reiterated
Date:10/01/26
The score is driven primarily by solid overall financial performance supported by a conservative, low-leverage balance sheet, offset by weakening revenue/margins and volatile cash conversion. Technicals are a meaningful positive due to strong trend and momentum, though near-overbought readings add risk. Valuation is reasonable but not especially compelling, with a moderate P/E and modest dividend yield.
Positive Factors
Conservative balance sheet
Low and declining leverage, together with steadily growing equity, gives Shinhokoku Material financial flexibility. This supports resilience through industrial cycles and preserves capacity to fund operations or investments without relying heavily on additional borrowing.
Negative Factors
Recent revenue contraction
Two consecutive years of revenue decline weaken the company’s growth profile and may indicate softer shipment volumes, pricing, or demand across its industrial customer base. Continued contraction would limit operating leverage and make sustained earnings improvement more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low and declining leverage, together with steadily growing equity, gives Shinhokoku Material financial flexibility. This supports resilience through industrial cycles and preserves capacity to fund operations or investments without relying heavily on additional borrowing.
Read all positive factors
Shinhokoku Material Corp. (5542) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.63B
Dividend Yield1.85%
Average Volume (3M)74.34K
Price to Earnings (P/E)19.4
Beta (1Y)0.77
Revenue Growth-5.79%
EPS Growth-18.54%
CountryJP
Employees99
SectorGeneral
Sector StrengthN/A
IndustrySteel
Share Statistics
EPS (TTM)64.82
Shares Outstanding7,020,000
10 Day Avg. Volume200,630
30 Day Avg. Volume74,340
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)0.83
Price to Sales (P/S)0.87
P/FCF Ratio35.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Shinhokoku Material Corp. Business Overview & Revenue Model
Company Description
Shinhokoku Material Corporation, a Japanese enterprise, specializes in the development, manufacturing, and distribution of advanced alloy materials and precision-engineered products. Their diverse offerings include low thermal expansion alloy cast...
How the Company Makes Money
Shinhokoku Material Corp. primarily makes money by manufacturing and selling processed metal materials and related manufactured products to industrial customers. Revenue is generated from (1) product sales tied to shipment volumes and contracted p...
Shinhokoku Material Corp. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.18B | 5.54B | 6.21B | 6.48B | 6.36B | 4.66B |
| Gross Profit | 550.38M | 1.37B | 1.48B | 1.44B | 1.43B | 1.02B |
| EBITDA | 327.83M | 734.84M | 933.38M | 792.15M | 817.26M | 580.65M |
| Net Income | 214.59M | 401.14M | 576.42M | 476.04M | 491.85M | 322.74M |
Balance Sheet | ||||||
| Total Assets | ― | 7.73B | 7.82B | 7.78B | 7.30B | 6.99B |
| Cash, Cash Equivalents and Short-Term Investments | ― | 3.31B | 3.43B | 2.56B | 2.37B | 2.55B |
| Total Debt | ― | 1.11B | 1.11B | 1.51B | 1.52B | 1.52B |
| Total Liabilities | ― | 1.92B | 2.20B | 2.54B | 2.48B | 2.52B |
| Stockholders Equity | ― | 5.81B | 5.61B | 5.24B | 4.82B | 4.47B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 137.21M | 1.30B | 321.99M | -3.99M | -336.11M |
| Operating Cash Flow | 0.00 | 483.95M | 1.41B | 497.28M | 169.73M | -243.28M |
| Investing Cash Flow | 0.00 | -1.86B | 4.86M | -197.63M | -201.11M | -97.33M |
| Financing Cash Flow | 0.00 | -239.98M | -554.29M | -104.26M | -151.80M | -160.38M |
Shinhokoku Material Corp. Technical Analysis
Positive
724.00
Price Trends
937.08
Positive
873.04
Positive
821.84
Positive
Market Momentum
97.97
Negative
70.88
Negative
78.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5542, the sentiment is Positive. The current price of 724 is below the 20-day moving average (MA) of 1033.90, below the 50-day MA of 937.08, and below the 200-day MA of 821.84, indicating a bullish trend. The MACD of 97.97 indicates Negative momentum. The RSI at 70.88 is Negative, neither overbought nor oversold. The STOCH value of 78.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5542.
Shinhokoku Material Corp. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ¥402.95B | 13.35 | ― | 2.90% | -1.88% | 20.80% | |
69 Neutral | ¥42.23B | 7.33 | ― | 4.12% | -3.04% | -49.39% | |
66 Neutral | ¥8.63B | 19.42 | ― | 1.85% | -5.79% | -18.54% | |
65 Neutral | ¥33.51B | 10.21 | ― | 3.02% | -8.00% | -35.22% | |
63 Neutral | ¥83.57B | 9.09 | ― | 4.69% | 2.94% | -16.58% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
JP:5542
Shinhokoku Material Corp.
1,349.00
579.85
75.39%
JP:5408
Nakayama Steel Works,Ltd.
629.00
18.67
3.06%
JP:5410
Godo Steel,Ltd.
2,915.00
-831.52
-22.19%
JP:5440
Kyoei Steel Ltd.
1,917.00
-221.97
-10.38%
JP:5463
Maruichi Steel Tube Ltd.
1,673.50
446.66
36.41%
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.