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Shinwa Co., Ltd. (7607) AI Stock Analysis
Shinwa Co., Ltd.
(TSE/TYO:7607)
The overall score of 48 reflects a company with a strong balance sheet that is being severely undermined by operational and cash flow deterioration. The most significant factor is the critical cash flow weakness, where the company is burning through cash, posing a major risk. This is compounded by declining revenue and margins, and a bearish technical trend. A low P/E ratio and high dividend yield provide some valuation support but are not enough to offset the fundamental operational concerns.
Shinwa Co., Ltd. (7607) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 37.82B
- Dividend Yield
- 4.40%
- Average Volume (3M)
- 41.16K
- Price to Earnings (P/E)
- 11.6
- Beta (1Y)
- 0.77
- Revenue Growth
- 1.59%
- EPS Growth
- -1.38%
- Country
- Japan
- Employees
- 925
- Sector
- General
- Sector Strength
- 55
- Industry
- Industrial - Machinery
Shinwa Co., Ltd. Business Overview & Revenue Model
Company Description
Shinwa Co., Ltd. operates as a comprehensive enterprise engaged in engineering, manufacturing, trading, and logistics within various industrial sectors. The company offers a wide array of metal joining products and solutions, encompassing equipment a...
How the Company Makes Money
The company makes money mainly by operating as an intermediary in art and art-object transactions. Its core revenue stream is service income generated when it facilitates sales—typically through auctions—where it earns fees/commissions connected to s...
Shinwa Co., Ltd. Financial Statement Overview
Summary
Financial performance is deeply divided. The balance sheet is a fortress (Score 85) with near-zero debt, but this is overshadowed by a severe cash flow crisis (Score 10) with negative operating and free cash flow, and deteriorating income trends (Score 35) marked by declining revenue and margins. The overall financial health is precarious despite a strong capital structure.
Income Statement
35NegativeBalance Sheet
85Very PositiveCash Flow
10Very Negative| Breakdown | TTM | Aug 2026 | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 87.51B | 87.51B | 86.15B | 77.85B | 76.11B | 71.06B |
| Gross Profit | 14.24B | 13.59B | 13.28B | 11.53B | 12.48B | 11.89B |
| EBITDA | 5.66B | 5.66B | 5.66B | 4.67B | 5.89B | 5.93B |
| Net Income | 3.27B | 3.27B | 3.31B | 2.73B | 3.59B | 3.78B |
Balance Sheet | ||||||
| Total Assets | 68.46B | 68.46B | 74.41B | 65.60B | 58.92B | 62.70B |
| Cash, Cash Equivalents and Short-Term Investments | 22.71B | 22.71B | 29.64B | 19.86B | 17.80B | 19.34B |
| Total Debt | 597.51M | 597.51M | 663.18M | 701.01M | 521.02M | 469.12M |
| Total Liabilities | 21.02B | 21.02B | 30.80B | 23.97B | 19.68B | 26.45B |
| Stockholders Equity | 47.27B | 47.27B | 43.47B | 41.47B | 39.10B | 36.11B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -5.74B | 10.58B | 3.32B | -195.69M | 6.73B |
| Operating Cash Flow | 0 | -2.92B | 11.34B | 3.97B | 1.22B | 7.50B |
| Investing Cash Flow | 0 | -3.32B | -810.40M | -702.67M | -1.87B | -1.55B |
| Financing Cash Flow | 0 | -1.79B | -1.49B | -1.37B | -1.14B | -2.33B |
Shinwa Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7607, the sentiment is Negative. The current price of 2819.00 is below the 20-day moving average (MA) of 2895.00, below the 50-day MA of 2986.81, and below the 200-day MA of 3042.19, indicating a bearish trend. The MACD of -56.64 indicates Positive momentum. The RSI at 34.46 is Neutral, neither overbought nor oversold. The STOCH value of 19.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7607.
Shinwa Co., Ltd. Peers Comparison
Overall Rating
JP:638183.6Outperform
JP:627282Outperform
JP:613771Outperform
JP:615169Neutral
JP:612551Neutral- JP:760748Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:6381 | 84Outperform | JPY 68.49B | 12.10 | ― | 4.94% | 6.49% | 36.18% |
| JP:6272 | 82Outperform | JPY 38.28B | 9.47 | 9.69% | 4.27% | 11.00% | 12.94% |
| JP:6137 | 71Outperform | JPY 30.04B | 8.25 | ― | 3.70% | 1.97% | 6.87% |
| JP:6151 | 69Neutral | JPY 29.59B | 10.66 | ― | 2.28% | 2.42% | 406.25% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| JP:6125 | 51Neutral | JPY 29.37B | 31.21 | ― | 3.64% | -6.36% | -61.60% |
| JP:7607 | 48Neutral | JPY 35.94B | 11.56 | ― | 4.40% | 1.59% | -1.38% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:7607 | Shinwa Co., Ltd. | 2819.00 | -139.24 | -4.71% | |
| JP:6272 | Rheon Automatic Machinery Co | 1428.00 | 38.05 | 2.74% | |
| JP:6125 | Okamoto Machine Tool Works,Ltd. | 4395.00 | -238.34 | -5.14% | |
| JP:6137 | Koike Sanso Kogyo Co., Ltd. | 1350.00 | -211.12 | -13.52% | |
| JP:6151 | Nitto Kohki Co., Ltd. | 1581.00 | -95.95 | -5.72% | |
| JP:6381 | ANEST IWATA Corp. | 1721.00 | 277.17 | 19.20% |
Shinwa Co., Ltd. Corporate Events
Shinwa Reshapes Board and Executive Lineup Ahead of November Meeting
Shinwa Co., Ltd. has announced a series of board and executive changes to be formally approved at its November 19, 2026 shareholders meeting, reshaping its senior leadership and governance structure. The reorganization affects both internal directors...
Shinwa Strengthens Balance Sheet as Profits Ease and Dividends Hold Steady
Shinwa Co., Ltd. reported consolidated net sales of ¥87.5 billion for the fiscal year ended August 31, 2026, up 1.6% year-on-year, while operating and ordinary profits declined slightly, and profit attributable to owners of parent dipped 1.3%. D...
Shinwa Confirms Stable Annual Dividend of ¥124 Per Share for FY2026
Shinwa Co., Ltd., a Japanese listed company on the Prime and Premier markets, is committed to delivering stable returns to shareholders through a dividend policy that targets a minimum annual payout and strong alignment with business performance. Its...
Shinwa Unveils Three-Year Growth Plan With Aggressive Profit and Dividend Targets
Shinwa Co., Ltd. has approved its 5th Medium-Term Management Plan covering September 2026 to August 2029, centered on boosting profitability through productivity improvements, consolidating manufacturing and development bases, and strengthening its e...
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: Oct 14, 2026