SHOWA SHINKU CO., LTD. (6384) AI Stock Analysis

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SHOWA SHINKU CO., LTD.

(TSE/TYO:6384)

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Rating:78Outperform

Price Target:JPY 1,917.00▲(18.92% Upside)

Action:reiterated

Date:08/18/26

The overall score of 78 is primarily driven by highly attractive valuation metrics, including a strong 4.16% dividend yield, and a pristine balance sheet with minimal debt. Financial performance is solid, marked by expanding margins and robust cash flow recovery, though historical cyclicality remains a minor factor. Technical indicators present a neutral to mildly positive outlook, showing short-term recovery alongside longer-term stability.

Positive Factors

Conservative balance sheetVery low leverage and a substantial equity base provide financial resilience, reduce interest-related pressure, and give the company flexibility to sustain operations or invest through cyclical industrial demand.

Negative Factors

Cyclical and inconsistent revenueThe uneven multi-year revenue path suggests meaningful exposure to cyclical manufacturing investment and end-market demand. Such volatility can make growth, capacity planning, and earnings visibility less consistent.

SHOWA SHINKU CO., LTD. (6384) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 9.96B
Dividend Yield: 4.34%
Average Volume (3M): 10.68K
Price to Earnings (P/E): 17.6
Beta (1Y): 0.62
Revenue Growth: -16.54%
EPS Growth: -18.93%
Country: Japan
Employees: 215
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

SHOWA SHINKU CO., LTD. Business Overview & Revenue Model

Company Description

Showa Shinku Co., Ltd., a company founded in 1953 and headquartered in Sagamihara, Japan, specializes in the production and distribution of vacuum technology and associated components. Formerly known as Showa Shinku Kikai Co., Ltd. until its name cha...

How the Company Makes Money

SHOWA SHINKU generates revenue primarily by selling industrial vacuum equipment and related systems to manufacturing customers. Key revenue streams include: (1) equipment sales: one-time revenues from delivery of vacuum systems and vacuum deposition/...

SHOWA SHINKU CO., LTD. Financial Statement Overview

Summary

Solid overall financial health driven by a pristine, nearly debt-free balance sheet and a strong recovery in operating cash flow. While top-line revenue remains below historical peaks, margin expansion and near 100% free cash flow conversion highlight improving operational efficiency.

Income Statement

75Positive

Balance Sheet

90Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	8.78B	9.32B	8.48B	7.46B	10.13B	11.96B
Gross Profit	2.90B	3.05B	2.68B	2.04B	2.98B	3.61B
EBITDA	1.24B	1.43B	1.02B	536.87M	1.37B	2.03B
Net Income	711.13M	867.33M	561.93M	164.29M	779.75M	1.24B
Balance Sheet
Total Assets	14.20B	15.17B	15.57B	14.49B	15.59B	17.52B
Cash, Cash Equivalents and Short-Term Investments	5.93B	6.45B	4.98B	5.36B	4.81B	5.07B
Total Debt	566.85M	568.91M	568.58M	579.11M	617.98M	620.96M
Total Liabilities	2.56B	3.00B	3.98B	3.09B	4.07B	6.47B
Stockholders Equity	11.64B	12.17B	11.59B	11.40B	11.52B	11.06B
Cash Flow
Free Cash Flow	0	2.05B	-41.96M	999.30M	42.17M	-85.94M
Operating Cash Flow	0	2.05B	178.76M	1.08B	211.04M	113.13M
Investing Cash Flow	0	-465.70M	-332.01M	-104.50M	-169.49M	-201.23M
Financing Cash Flow	0	-444.00M	-444.38M	-493.63M	-382.69M	-347.43M

SHOWA SHINKU CO., LTD. Technical Analysis

Technical Analysis SentimentNegative

Last Price1612.00

Price Trends

50DMA1691.56Negative

100DMA1689.75Negative

200DMA1687.91Negative

Market Momentum

MACD-32.33Negative

RSI44.83Neutral

STOCH70.61Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6384, the sentiment is Negative. The current price of 1612.00 is below the 20-day moving average (MA) of 1632.65, below the 50-day MA of 1691.56, and below the 200-day MA of 1687.91, indicating a bearish trend. The MACD of -32.33 indicates Negative momentum. The RSI at 44.83 is Neutral, neither overbought nor oversold. The STOCH value of 70.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6384.

SHOWA SHINKU CO., LTD. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:6384 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:6384	78Outperform	JPY 9.89B	17.65	―	4.34%	-16.54%	-18.93%
JP:6363	74Outperform	JPY 68.08B	6.05	―	2.59%	-1.87%	215.36%
JP:6151	73Outperform	JPY 29.62B	11.02	―	2.42%	5.95%	392.59%
JP:6517	71Outperform	JPY 68.15B	12.18	―	4.10%	9.85%	33.61%
JP:6381	67Neutral	JPY 67.14B	11.41	―	5.00%	13.76%	38.30%
JP:6498	64Neutral	JPY 158.08B	12.33	10.55%	3.36%	14.51%	10.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:6384 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:6384	SHOWA SHINKU CO., LTD.	1612.00	218.77	15.70%
JP:6498	Kitz Corporation	1817.00	185.48	11.37%
JP:6151	Nitto Kohki Co., Ltd.	1488.00	-160.56	-9.74%
JP:6363	Torishima Pump Mfg.Co., Ltd.	2550.00	710.52	38.63%
JP:6381	ANEST IWATA Corp.	1700.00	273.28	19.15%
JP:6517	Denyo Co., Ltd.	3415.00	358.45	11.73%

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 18, 2026

SHOWA SHINKU CO., LTD. AI Stock Analysis