SHINKO Inc. (7120) AI Stock Analysis

SHINKO Inc.

(TSE/TYO:7120)

Select Model

Rating:64Neutral

Price Target:JPY 956.00▲(8.64% Upside)

Action:downgraded

Date:08/09/26

The score is driven primarily by attractive valuation (low P/E and strong dividend yield), offset by weaker fundamentals due to the latest negative/volatile cash flow and higher leverage. Technical indicators are mildly bearish (below key moving averages with negative MACD), which further tempers the overall rating.

Positive Factors

Revenue GrowthStrong and accelerating revenue growth indicates solid demand momentum and expanding business activity. If sustained, this growth can provide operating scale, support continued investment, and improve the company’s ability to build earnings over the next several quarters.

Negative Factors

Negative Cash GenerationNegative operating and free cash flow weakens the quality of reported earnings because profits are not currently converting reliably into cash. Persistent or recurring shortfalls could constrain reinvestment, dividends, debt reduction, and resilience during weaker trading periods.

SHINKO Inc. (7120) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 4.20B
Dividend Yield: 4.82%
Average Volume (3M): 21.83K
Price to Earnings (P/E): 6.6
Beta (1Y): 0.20
Revenue Growth: 19.97%
EPS Growth: 59.64%
Country: Japan
Employees: 895
Sector: General
Sector Strength: 55
Industry: Information Technology Services

SHINKO Inc. Business Overview & Revenue Model

Company Description

SHINKO Inc. provides maintenance services, IT solutions, and human resource services in Japan. It offers maintenance support services for medical accounting system, electronic medical record system, electronic medication history system, automatic tab...

SHINKO Inc. Financial Statement Overview

Summary

Strong revenue growth (~16% most recent year) and modestly improving profitability support the score, but it is weighed down by negative and volatile operating/free cash flow in the latest report and a sharp rise in leverage (debt-to-equity ~0.53 vs. very low previously).

Income Statement

74Positive

Balance Sheet

66Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	20.06B	19.38B	16.90B	16.15B	15.95B	13.89B
Gross Profit	4.50B	4.50B	3.92B	3.66B	3.57B	3.26B
EBITDA	953.42M	1.03B	783.53M	706.17M	830.57M	679.52M
Net Income	633.55M	675.15M	512.87M	410.62M	481.56M	423.52M
Balance Sheet
Total Assets	7.97B	8.77B	6.39B	6.54B	6.47B	5.53B
Cash, Cash Equivalents and Short-Term Investments	1.90B	1.50B	1.53B	1.51B	929.59M	920.99M
Total Debt	1.07B	1.20B	85.96M	61.67M	349.25M	33.54M
Total Liabilities	6.02B	6.49B	4.64B	4.63B	4.85B	4.54B
Stockholders Equity	1.95B	2.27B	1.75B	1.91B	1.63B	990.35M
Cash Flow
Free Cash Flow	0	-463.43M	811.29M	1.10B	-415.86M	953.47M
Operating Cash Flow	0	-435.93M	921.75M	1.13B	-401.53M	978.09M
Investing Cash Flow	0	-64.86M	-186.75M	-114.05M	-29.78M	-35.43M
Financing Cash Flow	0	461.91M	-709.96M	-441.10M	439.90M	-959.40M

SHINKO Inc. Technical Analysis

Technical Analysis SentimentNegative

Last Price880.00

Price Trends

50DMA969.56Negative

100DMA1001.41Negative

200DMA954.15Negative

Market Momentum

MACD-23.55Negative

RSI35.58Neutral

STOCH63.60Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7120, the sentiment is Negative. The current price of 880.00 is below the 20-day moving average (MA) of 924.45, below the 50-day MA of 969.56, and below the 200-day MA of 954.15, indicating a bearish trend. The MACD of -23.55 indicates Negative momentum. The RSI at 35.58 is Neutral, neither overbought nor oversold. The STOCH value of 63.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7120.

SHINKO Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7120 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:3920	74Outperform	JPY 6.86B	20.63	―	1.78%	6.07%	-18.56%
JP:3988	74Outperform	JPY 5.80B	10.52	―	1.47%	11.55%	28.84%
JP:4076	73Outperform	JPY 5.25B	9.30	―	3.38%	9.70%	7.03%
JP:7120	64Neutral	JPY 4.91B	6.63	―	4.82%	19.97%	59.64%
JP:3839	64Neutral	JPY 5.10B	86.39	―	1.61%	1.74%	-72.72%
JP:4261	58Neutral	JPY 4.50B	31.58	―	―	7.83%	-51.12%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7120 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7120	SHINKO Inc.	893.00	105.99	13.47%
JP:3839	ODK Solutions Company, Ltd.	622.00	19.38	3.22%
JP:3920	Internetworking & Broadband Consulting Co., Ltd.	1234.00	258.09	26.45%
JP:3988	SYS Holdings Co. Ltd.	546.00	-8.79	-1.59%
JP:4076	CNS Co.,Ltd.	1805.00	206.25	12.90%
JP:4261	AsiaQuest Co.,Ltd.	3045.00	232.00	8.25%

SHINKO Inc. Corporate Events

SHINKO Lifts Sales but Stays in the Red as It Prepares Shift to Consolidated Reporting

Aug 14, 2026

For the three months ended June 30, 2026, SHINKO Inc. reported net sales of ¥4,153 million, a 19.3% increase from a year earlier, but still booked an ordinary loss, with profit at minus ¥121 million and basic earnings per share remaining in...

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 09, 2026

SHINKO Inc. AI Stock Analysis