SHIZUOKA GAS CO. LTD. (9543) AI Stock Analysis

• Market Cap: ¥84.40B
• Dividend Yield: 3.56%
• Average Volume (3M): 113.21K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.37
• Revenue Growth: -5.50%
• EPS Growth: -38.48%
• Country: JP
• Employees: 1,464
• Sector: Utilities
• Sector Strength: 88
• Industry: Regulated Gas
• EPS (TTM): 117.04
• Shares Outstanding: 76,192,955
• 10 Day Avg. Volume: 97,830
• 30 Day Avg. Volume: 113,210
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

SHIZUOKA GAS CO. LTD. exhibits solid balance sheet strength with low leverage and a stable equity base, contributing positively to its overall score. However, financial performance challenges, particularly in revenue and profitability decline, weigh on the score. Positive technical indicators and a favorable valuation with a low P/E ratio and attractive dividend yield moderately offset these challenges, resulting in an overall stock score of 72.

SHIZUOKA GAS CO. LTD. Business Overview & Revenue Model

Company Description

Shizuoka Gas Co. Ltd. is a Japan-based company primarily engaged in the supply and sale of natural gas. Operating predominantly in the Shizuoka Prefecture, the company offers a variety of energy solutions including the provision of natural gas and liquefied natural gas (LNG) to both residential and commercial customers. In addition to its core gas supply services, Shizuoka Gas Co. Ltd. is involved in the installation and maintenance of gas appliances, as well as the development of energy-saving technologies.

How the Company Makes Money

Shizuoka Gas Co. Ltd. generates revenue primarily through the sale and distribution of natural gas and LNG. The company's key revenue streams include the supply of gas to residential households, industrial clients, and commercial entities within its service area. Revenue is also derived from the installation and maintenance of gas-related equipment, which not only supports the main gas supply business but also enhances customer satisfaction and safety. Furthermore, Shizuoka Gas Co. Ltd. engages in energy-related services and projects, such as developing energy-saving technologies and participating in infrastructure projects, which contribute additional income. The company may form strategic partnerships to expand its service offerings and infrastructure, thereby increasing its market presence and potential revenue opportunities.

SHIZUOKA GAS CO. LTD. Financial Statement Overview

Summary

SHIZUOKA GAS CO. LTD.'s financial performance is stable with a strong balance sheet, evidenced by low leverage and a stable equity base. However, declines in revenue, net profit margins, and free cash flow growth highlight challenges in revenue growth and profitability, requiring attention for future improvement.

Income Statement

SHIZUOKA GAS CO. LTD. has shown a mixed performance in its income statement. The company experienced a decline in revenue from 214,004 million JPY in 2023 to 202,237 million JPY in 2024, resulting in a negative revenue growth rate of -5.49%. However, the gross profit margin improved slightly from 22.22% in 2023 to 19.64% in 2024, indicating some cost efficiency. The net profit margin also decreased from 6.59% to 4.34%, reflecting a decline in profitability. Overall, while cost management appears to be a strength, the company faces challenges in maintaining revenue growth and profitability.

Balance Sheet

The balance sheet of SHIZUOKA GAS CO. LTD. highlights financial stability with a strong equity base. The debt-to-equity ratio improved from 0.17 in 2023 to 0.14 in 2024, indicating reduced leverage. The return on equity (ROE) decreased from 13.13% to 7.43%, suggesting a decline in profitability relative to equity. The equity ratio improved from 69.45% to 69.41%, demonstrating a stable capital structure. While the company maintains low leverage and a stable equity base, the reduced ROE points to challenges in generating returns on equity.

Cash Flow

SHIZUOKA GAS CO. LTD.'s cash flow statement reveals mixed cash flow performance. The free cash flow decreased significantly from 23,717 million JPY in 2023 to 3,612 million JPY in 2024, indicating a negative free cash flow growth rate. The operating cash flow to net income ratio decreased from 2.68 to 1.25, showing reduced efficiency in converting net income to cash. Despite these challenges, the company maintains positive operating cash flow, which is a positive indicator of operational cash generation abilities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
202.24B	214.00B	207.32B	132.99B	121.32B
	Gross Profit
39.73B	47.57B	37.67B	32.66B	34.20B
	EBIT
10.30B	18.34B	8.63B	4.99B	6.83B
	EBITDA
20.03B	29.59B	17.37B	13.45B	15.39B
	Net Income Common Stockholders
8.78B	14.11B	5.97B	4.12B	3.71B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
36.25B	35.62B	27.78B	13.66B	31.73B
	Total Assets
170.20B	154.71B	159.50B	124.00B	118.18B
	Total Debt
16.62B	18.31B	30.39B	5.12B	4.37B
	Net Debt
-19.63B	-16.93B	2.74B	-8.53B	-27.36B
	Total Liabilities
44.68B	40.29B	59.89B	31.85B	30.51B
	Stockholders Equity
118.17B	107.44B	92.93B	86.40B	82.18B
Cash Flow		Free Cash Flow
3.61B	23.72B	-8.30B	-16.12B	11.17B
	Operating Cash Flow
10.98B	37.76B	4.12B	-6.91B	20.30B
	Investing Cash Flow
-8.68B	-14.12B	-14.07B	-9.80B	-8.43B
	Financing Cash Flow
-1.85B	-15.91B	23.55B	-1.41B	-4.49B

SHIZUOKA GAS CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1139.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9543, the sentiment is Positive. The current price of 1139 is below the 20-day moving average (MA) of 1142.40, above the 50-day MA of 1104.10, and above the 200-day MA of 1023.77, indicating a bullish trend. The MACD of 17.46 indicates Positive momentum. The RSI at 54.56 is Neutral, neither overbought nor oversold. The STOCH value of 54.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9543.

SHIZUOKA GAS CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9534	76 Outperform	¥47.29B	4.52		3.56%	-2.06%	-10.54%
9533	73 Outperform	$414.18B	16.75	5.51%	1.79%	3.64%	-3.56%
9543	72 Outperform	¥84.40B	9.74	7.49%	3.56%	-5.50%	-38.48%
9532	71 Outperform	¥1.47T	15.11	5.95%	2.56%	-7.84%	-45.99%
9531	70 Outperform	¥1.84T	24.70	4.25%	1.61%	-1.04%	-52.93%
9535	64 Neutral	¥24.15B	28.42		3.41%	-4.73%	-81.56%
Sector *	63 Neutral	$8.46B	11.05	5.34%	4.35%	3.09%	-12.05%

SHIZUOKA GAS CO. LTD. Corporate Events

Shizuoka Gas Completes Treasury Stock Disposal for Compensation

Shizuoka Gas Co., Ltd. has completed the payment procedures for the disposal of its treasury stock as restricted stock compensation, as resolved by its Board of Directors. This disposal involves 29,012 shares of common stock at a price of 1,146 yen per share, totaling 33,247,752 yen, and is allocated to directors and operating officers of the company.

Shizuoka Gas Expands into US Shale Gas Market

Shizuoka Gas Co., Ltd. has signed a Heads of Agreement with TG Eagle Ford Resources LP to acquire a 25% interest in a shale gas development project in the United States, marking its entry into the North American market. This acquisition, valued at $130 million, is part of the company’s strategy to expand its overseas operations as part of its 2030 Vision, with plans to market the produced gas in the US and explore further business opportunities in the region.

Shizuoka Gas Co., Ltd. Commits to Strategic Growth Initiatives

Shizuoka Gas Co., Ltd. has announced a strategic initiative aimed at enhancing corporate value by implementing management practices that are mindful of the cost of capital and stock price. This initiative is part of the company’s broader efforts to foster sustainable growth and improve long-term value for its stakeholders.

Shizuoka Gas Co., Ltd. Adopts Progressive Dividend Policy

Shizuoka Gas Co., Ltd. has announced a change in its dividend policy, shifting from stable to progressive dividends beginning with the fiscal year ending December 31, 2025. This adjustment reflects the company’s commitment to maintaining and potentially increasing dividend payouts, thereby demonstrating a long-term dedication to shareholder returns.

Shizuoka Gas Reports Decline in 2024 Profits but Raises Dividends

Shizuoka Gas Co., Ltd. reported a decrease in net sales and profits for the term ended December 31, 2024, with significant declines in operating and ordinary profits compared to the previous year. Despite these declines, the company increased its annual dividend payments, indicating a commitment to returning value to shareholders. The financial results and forecasts suggest challenges in profitability, yet the company maintains stable cash flow and asset positions.