Shinmaywa Industries (7224) AI Stock Analysis

• Market Cap: $123.04B
• Dividend Yield: 2.74%
• Average Volume (3M): 231.06K
• Price to Earnings (P/E): 14.8
• Beta (1Y): 1.02
• Revenue Growth: 1.75%
• EPS Growth: 2.42%
• Country: JP
• Employees: 6,181
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 13.69
• Shares Outstanding: 70,000,000
• 10 Day Avg. Volume: 190,310
• 30 Day Avg. Volume: 231,063
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 3.17
• Enterprise Value/Ebitda: 7.51
• 1Y Price Target: $1,912.36
• Price Target Upside: 2.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: ¥1,913.00 ▲(2.35% Upside)

Shinmaywa Industries is fundamentally strong with solid financial performance and efficient cash flow management. The valuation metrics suggest a fair price with an attractive dividend yield. Technical analysis presents mixed signals but no significant negative indicators.

Shinmaywa Industries Business Overview & Revenue Model

Company Description

ShinMaywa Industries, Ltd., together with its subsidiaries, manufactures and sells transportation equipment in Japan, Asia, North America, and internationally. It offers amphibian and aircraft components; and special purpose trucks, such as dump trucks, refuse compactors, tailgate lifters, concrete mixers, and petroleum tanks; and fluid and related facilities and equipment, including pumps, essentials for water treatment, and remote monitoring systems. The company also provides wire processing systems for home electric appliance and auto industries; environmental systems; thin film coating systems; direct drive motors; and aircraft passenger boarding bridges. In addition, it manufactures, sells, installs, maintains, improves, and repairs mechanical car parking systems; and develops a range of surface modification technologies that provide surface hardness, wear resistance, corrosion resistance, and polishing. The company was formerly known as Shin Meiwa Industry Company Limited. ShinMaywa Industries, Ltd. was incorporated in 1949 and is headquartered in Takarazuka, Japan.

How the Company Makes Money

Shinmaywa Industries generates revenue through the sale of its aerospace products, particularly amphibious aircraft, which are sold to government entities for maritime patrol and search and rescue operations. The company also earns income from its industrial machinery division, providing automated parking systems and other specialized equipment to urban developers and municipalities. Additionally, the environmental systems division contributes to revenue by supplying water treatment systems to both public and private sector clients. Key partnerships with government agencies and private sector firms play a significant role in sustaining and expanding their market reach.

Shinmaywa Industries Financial Statement Overview

Summary

Shinmaywa Industries demonstrates a strong financial position with consistent revenue growth, stable profitability, and efficient cash flow management. The income statement, balance sheet, and cash flow scores indicate healthy operations and effective financial management.

Income Statement

Shinmaywa Industries has demonstrated a strong revenue growth trajectory with a notable increase in total revenue from the previous year. The gross profit margin stands at approximately 16.8%, while the net profit margin is around 3.4%, indicating a stable profitability level. The EBIT and EBITDA margins are healthy at 5.2% and 7.4%, respectively, reflecting efficient operational management.

Balance Sheet

The company maintains a robust equity position with an equity ratio of approximately 42%. The debt-to-equity ratio is 0.46, suggesting a moderate leverage level that is manageable. Return on equity (ROE) is calculated at 8.0%, showing decent profitability on shareholders' equity.

Cash Flow

Shinmaywa Industries has achieved a significant free cash flow growth rate of 32%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 2.29, and the free cash flow to net income ratio is 1.14, showcasing excellent cash flow efficiency and sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	266.44B	266.44B	257.06B	225.18B	216.82B	209.23B
Gross Profit	44.75B	44.75B	40.83B	35.93B	35.11B	33.56B
EBITDA	18.88B	19.63B	16.99B	14.62B	17.54B	15.20B
Net Income	8.96B	8.96B	7.28B	7.31B	6.91B	5.49B
Balance Sheet
Total Assets	266.44B	266.44B	260.10B	226.91B	221.21B	212.06B
Cash, Cash Equivalents and Short-Term Investments	28.47B	28.47B	23.38B	22.75B	26.60B	23.05B
Total Debt	51.20B	51.20B	50.62B	52.42B	52.25B	54.54B
Total Liabilities	153.37B	153.37B	151.37B	126.47B	126.95B	123.22B
Stockholders Equity	112.03B	112.03B	107.01B	98.75B	92.46B	87.94B
Cash Flow
Free Cash Flow	10.25B	10.25B	7.77B	1.53B	10.69B	11.75B
Operating Cash Flow	20.50B	20.50B	14.06B	6.40B	16.00B	18.12B
Investing Cash Flow	-10.81B	-10.81B	-8.22B	-7.16B	-7.22B	-9.13B
Financing Cash Flow	-5.12B	-5.12B	-5.88B	-4.11B	-5.20B	-5.97B

Shinmaywa Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1869.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7224, the sentiment is Positive. The current price of 1869 is above the 20-day moving average (MA) of 1811.00, above the 50-day MA of 1766.78, and above the 200-day MA of 1479.70, indicating a bullish trend. The MACD of 33.27 indicates Negative momentum. The RSI at 68.15 is Neutral, neither overbought nor oversold. The STOCH value of 80.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7224.

Shinmaywa Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5393	81 Outperform	¥375.38B	12.20	14.89%	2.33%	0.72%	5.21%
7224	80 Outperform	$123.04B	14.79	7.75%	2.74%	1.75%	2.42%
8078	76 Outperform	¥260.08B	5.58	11.87%	3.52%	5.50%	28.80%
7762	76 Outperform	¥248.45B	10.14	9.33%	4.51%	0.08%	-2.80%
5706	73 Outperform	¥659.23B	18.00	19.50%	1.52%	6.34%	-19.70%
3401	60 Neutral	¥250.49B	10.86	5.37%	3.83%	-4.80%	75.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Shinmaywa Industries Corporate Events

ShinMaywa Industries Faces Temporary Business Suspension

ShinMaywa Industries has been issued a business suspension order by the Kinki Regional Development Bureau due to violations of the Antimonopoly Act concerning its mechanical parking systems. The suspension affects machinery and equipment installation in Japan for 30 days, starting September 10, 2025. Despite this setback, the company expects minimal impact on its business performance and will not revise its financial forecasts.

The most recent analyst rating on (JP:7224) stock is a Buy with a Yen1913.00 price target. To see the full list of analyst forecasts on Shinmaywa Industries stock, see the JP:7224 Stock Forecast page.

ShinMaywa Industries Reports Q1 2025 Financial Results

ShinMaywa Industries reported its consolidated financial results for the three months ended June 30, 2025, showing a slight increase in net sales by 0.4% compared to the previous year. However, the company experienced significant declines in operating profit, ordinary profit, and profit attributable to owners of the parent, with decreases of 22.5%, 41.4%, and 40.0% respectively. The equity-to-asset ratio slightly improved to 42.3% as of June 30, 2025. The company also announced a forecasted increase in annual dividends per share for the fiscal year ending March 31, 2026.

ShinMaywa Industries Completes Treasury Shares Disposition for Compensation

ShinMaywa Industries announced the completion of its treasury shares disposition as restricted stock compensation, a decision made by its Board of Directors. This move involved the allocation of over 53,000 common shares to various company directors and officers, potentially impacting executive incentives and shareholder value.

ShinMaywa Industries Announces Treasury Shares Disposition for Stock Compensation

ShinMaywa Industries has announced the disposition of treasury shares as restricted stock compensation, following a resolution by its Board of Directors. This move is part of a broader strategy to enhance corporate value and align the interests of directors and officers with shareholders. The company is implementing a transfer-restricted stock compensation system and a performance-linked stock compensation system, aiming to incentivize directors and officers to achieve business performance targets and enhance long-term corporate value. This initiative reflects ShinMaywa’s commitment to governance reforms and stakeholder value enhancement.