Below the resistance zone that is currently being tested, the potential for new gains appears limited for shares in SHIMAMURA Co., Ltd.. The stock's technical chart pattern suggests however that the level will be broken.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
Strengths
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.6 for the 2025 fiscal year.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Over the past twelve months, analysts' opinions have been strongly revised upwards.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The company's earnings growth outlook lacks momentum and is a weakness.
● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
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SHIMAMURA CO., Ltd. is mainly engaged in the operation of chain stores which principally retails apparel goods. The Company operates nationwide chain stores under the name Fashion Center SHIMAMURA, which sell fashion and utility apparel products, as well as related items for female customers aging from 20 to 50. It also operates other stores such as Avail, which sell men's and women's clothing and shoes aging from 10 to 30; Birthday, which sell baby products and children products; Chambre, which sell goods, interior, clothing, fashion goods for female customers, as well as Divalo, which offer shoes for female customers.
