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SHINKO Inc.
(7120)
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Rating:64Neutral
Price Target:
¥1,096.00
▲(33.66% 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 Growth
Sustained ~16% revenue growth indicates durable demand for the company’s services and supports scale benefits. Over the next 2–6 months this momentum underpins recurring top-line expansion, providing a larger base to fund margin improvement, investment and strategic initiatives.
Negative Factors
Volatile Negative Cash Flow
Recurrent negative and volatile operating/free cash flow undermines earnings quality and reduces internal funding for capex and dividends. Over 2–6 months this raises reliance on external financing and increases risk that reported profits won’t convert to sustainable cash.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained ~16% revenue growth indicates durable demand for the company’s services and supports scale benefits. Over the next 2–6 months this momentum underpins recurring top-line expansion, providing a larger base to fund margin improvement, investment and strategic initiatives.
Read all positive factors
SHINKO Inc. (7120) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.52B
Dividend Yield4.3%
Average Volume (3M)19.38K
Price to Earnings (P/E)7.4
Beta (1Y)0.21
Revenue Growth19.97%
EPS Growth59.64%
CountryJP
Employees895
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)143.53
Shares Outstanding5,502,000
10 Day Avg. Volume24,850
30 Day Avg. Volume19,376
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)1.79
Price to Sales (P/S)0.21
P/FCF Ratio-8.78
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
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 ...
How the Company Makes Money
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SHINKO Inc. Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 19.38B | 16.90B | 16.15B | 15.95B | 13.89B |
| Gross Profit | 4.50B | 3.92B | 3.66B | 3.57B | 3.26B |
| EBITDA | 1.03B | 783.53M | 706.17M | 830.57M | 679.52M |
| Net Income | 675.15M | 512.87M | 410.62M | 481.56M | 423.52M |
Balance Sheet | |||||
| Total Assets | 8.77B | 6.39B | 6.54B | 6.47B | 5.53B |
| Cash, Cash Equivalents and Short-Term Investments | 1.50B | 1.53B | 1.51B | 929.59M | 920.99M |
| Total Debt | 1.20B | 85.96M | 61.67M | 349.25M | 33.54M |
| Total Liabilities | 6.49B | 4.64B | 4.63B | 4.85B | 4.54B |
| Stockholders Equity | 2.27B | 1.75B | 1.91B | 1.63B | 990.35M |
Cash Flow | |||||
| Free Cash Flow | -463.43M | 811.29M | 1.10B | -415.86M | 953.47M |
| Operating Cash Flow | -435.93M | 921.75M | 1.13B | -401.53M | 978.09M |
| Investing Cash Flow | -64.86M | -186.75M | -114.05M | -29.78M | -35.43M |
| Financing Cash Flow | 461.91M | -709.96M | -441.10M | 439.90M | -959.40M |
SHINKO Inc. Technical Analysis
Negative
820.00
Price Trends
1035.16
Negative
996.91
Positive
931.97
Positive
Market Momentum
-10.37
Negative
42.93
Neutral
44.39
Neutral
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 820 is below the 20-day moving average (MA) of 1011.90, below the 50-day MA of 1035.16, and below the 200-day MA of 931.97, indicating a neutral trend. The MACD of -10.37 indicates Negative momentum. The RSI at 42.93 is Neutral, neither overbought nor oversold. The STOCH value of 44.39 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥5.86B | 9.96 | ― | 4.35% | 10.98% | 38.25% | |
74 Outperform | ¥5.47B | 16.52 | ― | 1.71% | 6.07% | -18.56% | |
73 Outperform | ¥5.95B | 12.73 | ― | 1.23% | 14.08% | 6.64% | |
64 Neutral | ¥5.52B | 7.43 | ― | 3.51% | 19.97% | 59.64% | |
60 Neutral | ¥5.29B | 47.99 | ― | 1.61% | 3.07% | -54.25% | |
58 Neutral | ¥4.44B | 30.97 | ― | ― | 7.83% | -51.12% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
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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.