| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3213.85 | 100 |
| Intrinsic value (DCF) | 683.79 | -58 |
| Graham-Dodd Method | 4549.45 | 183 |
| Graham Formula | 1032.80 | -36 |
Shinto Company Limited (5380.T) is a Japan-based manufacturer and supplier of Japanese and Western-style roofing tiles and related construction materials. Founded in 1963 and headquartered in Takahama, Japan, the company specializes in ceramic roofing tiles, disaster-resistant tiles, high-reflective tiles, and solar power systems. Shinto serves both domestic and international markets, exporting its roofing solutions to various regions. Operating in the Construction Materials sector under Basic Materials, Shinto plays a crucial role in Japan's building industry, offering durable and energy-efficient roofing solutions. Despite recent financial challenges, the company maintains a niche market presence with its diversified product portfolio, including eco-friendly and solar-integrated roofing systems. With a market capitalization of approximately ¥1.1 billion, Shinto remains a key player in Japan's specialized roofing segment.
Shinto Company Limited presents a mixed investment profile. The company operates in a niche segment of the construction materials industry, with a focus on high-quality roofing solutions, including solar-integrated systems, which could benefit from Japan's push toward sustainable building practices. However, recent financials show a net loss of ¥65.9 million and negative diluted EPS (-¥93.1), raising concerns about profitability. The company maintains a modest operating cash flow of ¥178.3 million and a dividend payout of ¥37.5 per share, which may appeal to income-focused investors. High total debt (¥1.87 billion) relative to cash reserves (¥276.2 million) is a risk factor. Investors should weigh Shinto's specialized market position against its financial instability and exposure to Japan's cyclical construction sector.
Shinto Company Limited competes in Japan's roofing materials market, where differentiation is driven by product quality, durability, and technological integration (e.g., solar tiles). The company's competitive advantage lies in its dual expertise in traditional Japanese and Western-style roofing tiles, catering to diverse architectural demands. Its disaster-resistant and high-reflective tiles align with Japan's stringent building codes and climate challenges. However, Shinto faces intense competition from larger construction material firms with greater economies of scale and R&D budgets. The company's solar power system offerings position it in the growing green building segment, but this niche is also contested by well-capitalized renewable energy and construction firms. Shinto's export activities provide some geographic diversification, but its domestic focus limits growth compared to global competitors. Financial constraints may hinder its ability to invest in innovation or expand market share aggressively.