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SHIMAMURA Co Ltd (JP:8227)
:8227
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SHIMAMURA Co (8227) AI Stock Analysis

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JP:8227

SHIMAMURA Co

(8227)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
¥3,694.00
▲(9.45% Upside)
Action:Reiterated
Date:06/30/26
The score is driven primarily by strong financial quality—especially the exceptionally conservative, debt-free balance sheet and stable profitability—partly offset by weaker recent cash-flow conversion and declining TTM free cash flow. Valuation is reasonable (P/E 15.671; ~2.06% dividend yield). Technical signals could not be validated due to missing indicator data, keeping that component neutral.
Positive Factors
Debt-free, conservative balance sheet
Zero total debt and a debt-to-equity ratio of 0 provide durable financial flexibility and downside protection for a cyclical retailer. This structure supports steady dividend capacity, opportunistic reinvestment or M&A, and resilience through consumer slowdowns without stress from interest obligations.
Negative Factors
Weaker cash conversion / falling FCF
Operating cash flow trailing at ~74% of net income and a sharp TTM free cash flow decline signal reduced cash conversion. Persistent working-capital or reinvestment needs could constrain capital allocation, limit buybacks or capex flexibility, and reduce the firm's ability to fund growth without altering operations.
Read all positive and negative factors
Positive Factors
Negative Factors
Debt-free, conservative balance sheet
Zero total debt and a debt-to-equity ratio of 0 provide durable financial flexibility and downside protection for a cyclical retailer. This structure supports steady dividend capacity, opportunistic reinvestment or M&A, and resilience through consumer slowdowns without stress from interest obligations.
Read all positive factors

SHIMAMURA Co (8227) vs. iShares MSCI Japan ETF (EWJ)

SHIMAMURA Co Business Overview & Revenue Model

Company Description
SHIMAMURA Co., Ltd., a retail enterprise established in 1953, is headquartered in Saitama, Japan. The company operates a network of stores throughout Japan and Taiwan, providing customers with a diverse selection of products ranging from apparel a...
How the Company Makes Money
SHIMAMURA makes money primarily through retail sales at its physical stores, earning gross profit as the difference between the selling price of merchandise and its procurement cost. Its key revenue stream is the sale of private-label and third-pa...

SHIMAMURA Co Financial Statement Overview

Summary
Strong overall fundamentals: steady revenue growth and consistently solid profitability (gross margin mid-30% range; net margin ~6%). The debt-free, highly conservative balance sheet is a major strength, but the score is held back by weaker recent cash conversion—TTM operating cash flow is ~74% of net income and TTM free cash flow declined sharply versus the prior annual period.
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
62
Positive
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue715.00B701.38B666.74B636.50B617.52B584.77B
Gross Profit244.62B238.46B226.16B219.97B211.39B200.08B
EBITDA71.91B69.41B65.52B61.46B59.19B55.33B
Net Income46.52B44.46B41.88B40.08B38.02B35.43B
Balance Sheet
Total Assets576.86B554.67B570.94B537.57B505.87B478.02B
Cash, Cash Equivalents and Short-Term Investments221.19B242.37B297.00B270.83B263.16B234.43B
Total Debt0.000.000.000.000.000.00
Total Liabilities84.22B66.12B69.96B66.16B65.81B67.02B
Stockholders Equity492.64B488.55B500.98B471.41B440.05B411.00B
Cash Flow
Free Cash Flow17.05B24.70B41.13B33.41B37.17B28.96B
Operating Cash Flow55.28B48.05B52.80B41.16B41.55B37.21B
Investing Cash Flow-98.08B-66.33B4.65B-87.20B2.33B143.14B
Financing Cash Flow-60.99B-60.75B-12.51B-9.94B-9.20B-8.46B

SHIMAMURA Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥693.46B14.9612.11%2.68%1.73%2.18%
77
Outperform
¥26.03T53.0719.84%0.90%11.25%16.84%
75
Outperform
¥556.58B27.001.04%17.47%22.05%
73
Outperform
¥739.20B15.518.48%2.02%6.57%12.36%
72
Outperform
¥38.76B12.353.62%-3.00%-23.04%
71
Outperform
¥269.00B14.431.46%12.93%32.83%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:8227
SHIMAMURA Co
3,340.00
-167.38
-4.77%
JP:2670
ABC-MART
2,800.50
-86.36
-2.99%
JP:9983
FAST RETAILING CO
82,810.00
35,833.85
76.28%
JP:2726
PAL GROUP Holdings Co., Ltd.
1,472.00
-279.41
-15.95%
JP:2792
HONEYS HOLDINGS CO. LTD.
1,391.00
-125.68
-8.29%
JP:7564
Workman Co., Ltd.
6,820.00
514.05
8.15%

SHIMAMURA Co Corporate Events

SHIMAMURA Delivers Strong Q1 Results and Confirms Earnings Outlook After Share Split
Jun 29, 2026
SHIMAMURA reported solid first-quarter results for the three months ended May 20, 2026, with net sales rising 7.9% year on year to ¥181.7 billion and operating profit climbing 16.8% to ¥17.9 billion. Profit attributable to owners of the ...
Shimamura Revamps Board With Internal Promotion and New Outside Director
May 15, 2026
SHIMAMURA Co., Ltd. has reshaped its board structure following resolutions at its 73rd Annual General Meeting of Shareholders and subsequent board meeting on May 15, 2026. The company promoted long-time executive Makoto Oota to Director and Execut...
SHIMAMURA Completes Treasury Share Disposal for Executive Restricted Stock Pay
Apr 1, 2026
SHIMAMURA Co., Ltd. has completed payment procedures for the disposal of 20,700 treasury shares to be granted as restricted share-based remuneration to 15 executive officers. The shares were disposed at ¥3,520 per share, for a total value of ...
Shimamura Reshapes Board With New Internal and Outside Directors
Mar 30, 2026
SHIMAMURA Co., Ltd. announced board-level personnel changes, with the Board of Directors provisionally approving new director appointments effective May 15, 2026, pending shareholder approval. Executive Officer Makoto Oota, a long-serving company ...
Shimamura Raises Year-End Dividend, Lifts Payout for FY2026
Mar 30, 2026
Shimamura Co., Ltd. has resolved to increase its year-end dividend for the fiscal year ending February 2026, setting the payout at ¥115 per share, up ¥10 from its previous forecast and from ¥105 a year earlier. This decision, based ...
SHIMAMURA Posts Higher Earnings and Lifts Dividend, Forecasts Further Growth for 2027
Mar 30, 2026
SHIMAMURA reported consolidated net sales of ¥700.0 billion for the fiscal year ended February 20, 2026, up 5.2% year on year, with operating profit rising 3.8% to ¥61.5 billion and profit attributable to owners of parent climbing 6.1% t...
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: Jun 30, 2026