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SHIBUYA KOGYO CO LTD (6340) AI Stock Analysis

4 Followers
JP:6340

SHIBUYA KOGYO CO LTD

(TSE/TYO:6340)

Select Model
Rating:74Outperform
Price Target:JPY 6,350.00â–²(25.99% Upside)
Action:reiterated
Date:08/19/26

The score is primarily supported by solid overall financial quality (especially a conservative, low-debt balance sheet and steady revenue growth), but is held back by inconsistent cash conversion and recent margin/profit pressure. Technically, the trend is strong with price above major moving averages, though momentum indicators are elevated, implying the stock may be extended. Valuation appears reasonable with a moderate P/E and a ~2.8% dividend yield.

Positive Factors
Conservative balance sheetA conservative balance sheet reduces financial risk and preserves flexibility through changing industrial cycles. Low and improving leverage should limit interest burdens, support continued investment in equipment and engineering capabilities, and provide resilience if project demand softens.
Negative Factors
Weak cash conversionWeak and inconsistent cash conversion can reduce the practical value of reported earnings, particularly for a project-oriented industrial business. Persistently low free cash flow may constrain internally funded investment and indicate that working-capital or capital-spending requirements remain substantial.

SHIBUYA KOGYO CO LTD (6340) vs. iShares MSCI Japan ETF (EWJ)

-20%0%20%40%60%80%100%JP:6340+61.17%EWJ+13.61%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 136.81B
Dividend Yield
2.93%
Average Volume (3M)
73.75K
Price to Earnings (P/E)
13.4
Beta (1Y)
1.09
Revenue Growth
2.15%
EPS Growth
17.99%
Country
Japan
Employees
3,437
Sector
General
Sector Strength
55
Industry
Industrial - Machinery

SHIBUYA KOGYO CO LTD Business Overview & Revenue Model

Company Description

Shibuya Corporation manufactures and sells packaging and other systems in Japan and internationally. The company offers bottling systems for SAKE and distilled spirit bottling system, liquor bottling system, beer bottling system, dairy product bottli...

How the Company Makes Money

SHIBUYA KOGYO makes money primarily by (1) selling industrial machinery/equipment and manufacturing systems and (2) providing engineering and lifecycle services tied to those systems. Revenue is typically recognized through: (a) equipment sales—custo...

SHIBUYA KOGYO CO LTD Financial Statement Overview

Summary

Strong balance sheet with very low leverage and a growing equity base supports stability, while revenue growth has been steady with a rebound since 2023. Offsetting this, profitability has compressed versus 2022 and operating profit declined in 2026 despite higher revenue. Cash conversion is the main weakness, with volatile free cash flow and 2026 FCF covering only a small portion of earnings.

Income Statement

72Positive

Balance Sheet

88Very Positive

Cash Flow

52Neutral
Financial statement breakdown
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue135.61B135.61B129.02B115.43B97.84B96.22B
Gross Profit25.24B25.24B25.21B24.08B18.20B23.62B
EBITDA16.52B16.48B17.20B16.75B11.35B16.10B
Net Income10.22B10.22B10.05B9.78B5.93B9.26B
Balance Sheet
Total Assets173.28B173.28B159.43B161.90B142.43B136.98B
Cash, Cash Equivalents and Short-Term Investments44.01B44.01B45.58B47.20B42.95B42.08B
Total Debt2.79B2.79B3.70B4.61B5.71B2.56B
Total Liabilities54.19B54.19B51.49B60.87B52.24B51.55B
Stockholders Equity119.08B119.08B107.92B101.02B90.17B85.42B
Cash Flow
Free Cash Flow01.01B2.29B6.87B-1.19B8.82B
Operating Cash Flow05.28B9.07B10.43B4.85B12.80B
Investing Cash Flow0-10.74B-6.62B-3.45B-5.33B-3.56B
Financing Cash Flow0-3.60B-3.81B-3.04B1.22B-3.10B

SHIBUYA KOGYO CO LTD Technical Analysis

Technical Analysis SentimentNeutral
Last Price5040.00

Price Trends

50DMA5393.90Negative
100DMA4966.04Positive
200DMA4271.92Positive

Market Momentum

MACD-143.65Positive
RSI43.35Neutral
STOCH61.59Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6340, the sentiment is Neutral. The current price of 5040.00 is below the 20-day moving average (MA) of 5249.25, below the 50-day MA of 5393.90, and above the 200-day MA of 4271.92, indicating a neutral trend. The MACD of -143.65 indicates Positive momentum. The RSI at 43.35 is Neutral, neither overbought nor oversold. The STOCH value of 61.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6340.

SHIBUYA KOGYO CO LTD Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:6340 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:6118JP:611881OutperformJPY 53.60B15.29―3.64%-1.63%-23.69%
JP:6340JP:634074OutperformJPY 140.83B13.36―2.93%2.15%17.99%
JP:6143JP:614373OutperformJPY 73.80B7.849.79%2.43%21.48%58.27%
JP:6349JP:634966NeutralJPY 87.86B13.395.60%4.90%4.12%-20.11%
JP:6258JP:625862NeutralJPY 105.24B13.1210.14%2.16%9.33%45.31%
JP:6104JP:610458NeutralJPY 100.35B63.881.86%3.12%-21.68%-103.56%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%

* General Sector Average

Performance Comparison

0%50%100%JP:6340JP:6258JP:6349JP:6143JP:6104JP:6118Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:6340 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:6340SHIBUYA KOGYO CO LTD5040.001868.9958.94%
JP:6258Hirata Corporation3235.001170.5556.70%
JP:6349Komori Corporation1734.00320.4522.67%
JP:6143Sodick Co., Ltd.1440.00509.4454.75%
JP:6104Shibaura Machine Co., Ltd.4485.00464.4911.55%
JP:6118Aida Engineering,Ltd.1072.0089.879.15%

SHIBUYA KOGYO CO LTD Corporate Events

Shibuya Hit With US$48.6 Million U.S. Patent Judgment Over Aseptic Filling Systems

Oct 14, 2026

Shibuya Corporation has been hit with an adverse ruling in U.S. patent litigation over its aseptic filling systems, after the District Court for the District of Delaware found the company infringed specific claims of two Steuben Foods patents. The co...

Shibuya Corporation Lifts Annual Dividend to 100 Yen Per Share

Aug 13, 2026

Shibuya Corporation’s board has approved a year-end dividend of 52.50 yen per share for the fiscal year ended June 30, 2026, with retained earnings as the source and an effective payment date of September 28, 2026. Including the previously paid inter...

Shibuya Corp Lifts Dividend as Profit Holds Steady, Forecasts Strong FY2027 Growth

Aug 13, 2026

Shibuya Corporation reported fiscal year 2026 consolidated net sales of ¥135.6 billion, up 5.1% year on year, while operating profit slipped 4.9% to ¥13.1 billion and ordinary profit dipped 1.5% to ¥13.6 billion, leaving profit attributable to owners...

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 19, 2026