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Shinwa Co., Ltd.
(7607)
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Rating:68Neutral
Price Target:
¥3,286.00
▲(3.66% Upside)
Action:Downgraded
Date:10/14/26
The score is primarily supported by a very conservative balance sheet and attractive valuation (moderate P/E and high dividend yield). Offsetting these positives are inconsistent cash generation—especially the sharp cash-flow deterioration in 2026—and softer technical momentum with price below major moving averages and a negative MACD.
Positive Factors
Conservative Balance Sheet
Extremely low leverage materially reduces refinancing and solvency risk, giving Shinwa financial resilience through business fluctuations. Growing shareholders’ equity further strengthens its capacity to absorb setbacks and fund operations without relying heavily on external financing.
Negative Factors
Volatile Cash Generation
The sharp 2026 reversal in operating and free cash flow indicates that reported profits are not consistently converting into cash. Volatility linked to working-capital movements or investment needs can increase liquidity sensitivity and make funding and capital allocation less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Extremely low leverage materially reduces refinancing and solvency risk, giving Shinwa financial resilience through business fluctuations. Growing shareholders’ equity further strengthens its capacity to absorb setbacks and fund operations without relying heavily on external financing.
Read all positive factors
Shinwa Co., Ltd. (7607) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥36.16B
Dividend Yield4.37%
Average Volume (3M)33.32K
Price to Earnings (P/E)11.6
Beta (1Y)0.75
Revenue Growth1.59%
EPS Growth-1.38%
CountryJP
Employees925
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)259.86
Shares Outstanding13,815,319
10 Day Avg. Volume53,570
30 Day Avg. Volume33,320
Financial Highlights & Ratios
PEG Ratio-9.19
Price to Book (P/B)0.88
Price to Sales (P/S)0.48
P/FCF Ratio-7.25
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
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 equipmen...
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 t...
Shinwa Co., Ltd. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
90
Very Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Aug 2026 | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 89.94B | 87.51B | 86.15B | 77.85B | 76.11B | 71.06B |
| Gross Profit | 14.40B | 13.59B | 13.28B | 11.53B | 12.48B | 11.89B |
| EBITDA | 5.93B | 5.66B | 5.66B | 4.67B | 5.89B | 5.93B |
| Net Income | 3.48B | 3.27B | 3.31B | 2.73B | 3.59B | 3.78B |
Balance Sheet | ||||||
| Total Assets | 68.58B | 68.46B | 74.41B | 65.60B | 58.92B | 62.70B |
| Cash, Cash Equivalents and Short-Term Investments | 23.66B | 22.71B | 29.64B | 19.86B | 17.80B | 19.34B |
| Total Debt | 1.91B | 597.51M | 663.18M | 701.01M | 521.02M | 469.12M |
| Total Liabilities | 22.05B | 21.02B | 30.80B | 23.97B | 19.68B | 26.45B |
| Stockholders Equity | 46.37B | 47.27B | 43.47B | 41.47B | 39.10B | 36.11B |
Cash Flow | ||||||
| Free Cash Flow | 10.53B | -5.74B | 10.58B | 3.32B | -195.69M | 6.73B |
| Operating Cash Flow | 11.34B | -2.92B | 11.34B | 3.97B | 1.22B | 7.50B |
| Investing Cash Flow | -810.40M | -3.32B | -810.40M | -702.67M | -1.87B | -1.55B |
| Financing Cash Flow | -1.49B | -1.79B | -1.49B | -1.37B | -1.14B | -2.33B |
Shinwa Co., Ltd. Technical Analysis
Negative
3170.00
Price Trends
3007.52
Negative
3042.02
Negative
3045.60
Negative
Market Momentum
-56.13
Positive
33.05
Neutral
13.90
Positive
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 3170 is above the 20-day moving average (MA) of 2942.65, above the 50-day MA of 3007.52, and above the 200-day MA of 3045.60, indicating a bearish trend. The MACD of -56.13 indicates Positive momentum. The RSI at 33.05 is Neutral, neither overbought nor oversold. The STOCH value of 13.90 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | ¥69.52B | 12.36 | ― | 4.87% | 6.49% | 36.18% | |
82 Outperform | ¥38.71B | 9.56 | 9.69% | 4.22% | 11.00% | 12.94% | |
71 Outperform | ¥30.27B | 8.25 | ― | 3.68% | 1.97% | 6.87% | |
69 Neutral | ¥30.04B | 10.91 | ― | 2.24% | 2.42% | 406.25% | |
68 Neutral | ¥36.16B | 11.62 | ― | 4.37% | 1.59% | -1.38% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ¥29.20B | 31.03 | ― | 3.66% | -6.36% | -61.60% |
* General Sector Average
JP:7607
Shinwa Co., Ltd.
2,836.00
-266.55
-8.59%
JP:6272
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-9.36%
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-234.31
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1,605.00
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-9.32%
JP:6381
ANEST IWATA Corp.
1,747.00
232.83
15.38%
Shinwa Co., Ltd. Corporate Events
Shinwa Reshapes Board and Executive Lineup Ahead of November Meeting
Oct 13, 2026
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 direct...
Shinwa Strengthens Balance Sheet as Profits Ease and Dividends Hold Steady
Oct 13, 2026
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%...
Shinwa Confirms Stable Annual Dividend of ¥124 Per Share for FY2026
Oct 13, 2026
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. ...
Shinwa Unveils Three-Year Growth Plan With Aggressive Profit and Dividend Targets
Jul 21, 2026
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 it...
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.