Shinden Hightex Corp

Shinden Hightex Corp maintains a liquidity position with a current ratio of 1.64, indicating the company can cover its short-term liabilities with its short-term assets. The company holds JPY 5,972,876,000 in cash and equivalents, but its long-term debt of JPY 8,093,310,000 results in a debt-to-equity ratio of 1.14, suggesting moderate leverage. Despite a negative net cash position after subtracting total debt, the company generates positive operating cash flow of JPY 1,033,157,000, which supports its liquidity profile.

Profitability metrics show mixed results. The company reports a gross profit of JPY 750,882,000, but its operating income is only JPY 256,975,000, and it ends with a net loss of JPY 16,855,000. Return on equity is negative at -0.24%, and return on assets is also negative at -0.09%, indicating poor capital efficiency and asset utilization. These figures fall below the typical performance of the semiconductor industry, which is known for high gross margins and strong returns on invested capital.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of segmentation data limits the ability to assess regional exposure or segment-specific performance. The absence of detailed geographic breakdowns increases the risk of overreliance on a single market or customer base.

Growth trajectory appears uncertain. The company's revenue for the latest period is JPY 10,329,860,000, but there is no disclosed prior period data to calculate year-over-year growth. Analyst estimates suggest a last actual revenue of JPY 43,745,220,000, which may reflect a seasonal or quarterly anomaly. The company's capital expenditure is minimal at JPY -11,618,000, indicating limited investment in future capacity or expansion.

Risk factors include a negative net income and a debt-to-equity ratio above 1, which could pressure liquidity if operating cash flow declines. The risk assessment indicates medium liquidity risk and low dilution potential, with no recent signs of share issuance or dilutive financing. The company's capital structure is not adjusted for any known valuation adjustments, suggesting a clean balance sheet with no hidden liabilities.

Recent events include the latest financial filing, which shows a net loss despite positive operating cash flow. No recent earnings call transcripts or press releases are available to provide additional context on the company's strategic direction or operational performance.

Free cash flow surged 1,489.5% year-over-year to JPY 526 million in fiscal 2025, demonstrating significant operational cash generation improvement.

Net income nearly doubled with a 119.7% year-over-year increase to JPY 643 million in fiscal 2025, signaling strong bottom-line recovery.

Operating income grew 23.4% year-over-year to JPY 1.4 billion in fiscal 2025, indicating improved core business profitability margins.

Long-term debt decreased to JPY 5.97 billion in fiscal 2025, reflecting a deleveraging trend from the JPY 11.1 billion peak in fiscal 2021.

Revenue maintained stability with a 3.5% year-over-year increase to JPY 43.7 billion in fiscal 2025, despite a negative four-year CAGR.

The company faces high credit risk, posing a significant threat to financial stability and potential access to external financing sources.

Debt-to-equity ratio stands at 1.14, significantly exceeding the semiconductor cohort median of 0.24, indicating elevated financial leverage risk.

Cash conversion ratio of -61.3% ranks in the bottom quartile of the semiconductor cohort, highlighting poor cash generation efficiency.

Revenue ¥10.56B, −4,4% YoY; Operating income +138,4% YoY.

• ▍Revenue ¥10.56B, −4,4% YoY
• ▍Operating income +138,4% YoY
• ▍Net income +30,1% YoY
• ▍Net margin 0.8%

Revenue ¥10.13B, −15,9% YoY; Operating income −62,4% YoY.

• ▍Revenue ¥10.13B, −15,9% YoY
• ▍Operating income −62,4% YoY
• ▍Net income −76,7% YoY
• ▍Net margin 0.7%

Revenue ¥9.76B, +2,5% YoY; Operating income +17,2% YoY.

• ▍Revenue ¥9.76B, +2,5% YoY
• ▍Operating income +17,2% YoY
• ▍Net income +2 619,4% YoY
• ▍Net margin 1.1%

Revenue ¥11.14B, +7,9% YoY; Operating income +126,8% YoY.

• ▍Revenue ¥11.14B, +7,9% YoY
• ▍Operating income +126,8% YoY
• ▍Net income +1 818,8% YoY
• ▍Net margin 2.6%

Revenue ¥11.04B; Operating income ¥118.2M.

• ▍Revenue ¥11.04B
• ▍Operating income ¥118.2M
• ▍Net margin 0.6%

Revenue ¥12.04B; Operating income ¥471.8M.

• ▍Revenue ¥12.04B
• ▍Operating income ¥471.8M
• ▍Net margin 2.5%

Revenue ¥9.53B; Operating income ¥228.0M.

• ▍Revenue ¥9.53B
• ▍Operating income ¥228.0M
• ▍Net margin -0.0%

Revenue ¥10.33B; Operating income ¥257.0M.

• ▍Revenue ¥10.33B
• ▍Operating income ¥257.0M
• ▍Net margin -0.2%

Revenue ¥43.75B, +3,5% YoY; Operating income +23,4% YoY.

• ▍Revenue ¥43.75B, +3,5% YoY
• ▍Operating income +23,4% YoY
• ▍Net income +119,7% YoY
• ▍Free cash flow +1 489,5% YoY
• ▍Net margin 1.5%

Revenue ¥42.29B, +0,9% YoY; Operating income −49,4% YoY.

• ▍Revenue ¥42.29B, +0,9% YoY
• ▍Operating income −49,4% YoY
• ▍Net income −67,4% YoY
• ▍Free cash flow −95,1% YoY
• ▍Net margin 0.7%

Revenue ¥41.92B, −3,5% YoY; Operating income +48,0% YoY.

• ▍Revenue ¥41.92B, −3,5% YoY
• ▍Operating income +48,0% YoY
• ▍Net income +20,0% YoY
• ▍Free cash flow +9,8% YoY
• ▍Net margin 2.1%

Revenue ¥43.46B, −11,5% YoY; Operating income +84,1% YoY.

• ▍Revenue ¥43.46B, −11,5% YoY
• ▍Operating income +84,1% YoY
• ▍Net income +50,4% YoY
• ▍Free cash flow +41,2% YoY
• ▍Net margin 1.7%