Shinko (TSE:7120) EBIT: 円925 Mil (TTM As of Mar. 2026)

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TSE:7120 Shinko Inc TSE:7120
85 GF Score
Price 円1,092.00
GF Value 円1,029.93
Valuation Fairly Valued
! 3 Warning Signs
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What is Shinko EBIT?

Shinko TSE:7120 +2.15% 85 EBIT is 円925 Mil as of Mar. 2026. GuruFocus rates TSE:7120 with a GF Score™ of 85/100 and a GF Value™ of 円1,029.93 (Fairly Valued). The stock has 3 warning signs investors should review.

Shinko's earnings before interest and taxes (EBIT) for the six months ended in Mar. 2026 was 円760 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was 円925 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Shinko's annualized ROC % for the quarter that ended in Mar. 2026 was 25.35%. Shinko's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 100.28%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Shinko's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 20.68%.

Shinko  (TSE:7120) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Shinko's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=1515.208 * ( 1 - 24.54% )/( (4144.521 + 4875.496)/ 2 )
=1143.3759568/4510.0085
=25.35 %

where

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6544.216 - 1237.665 - ( 1162.03 - max(0, 2986.789 - 4839.869+1162.03))
=4144.521

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=8768.702 - 2032.478 - ( 1860.728 - max(0, 4706.927 - 7392.076+1860.728))
=4875.496

Note: The Operating Income data used here is two times the semi-annual (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Shinko's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1520.15/( ( (702.37 + max(691.05, 0)) + (297.997 + max(1340.49, 0)) )/ 2 )
=1520.15/( ( 1393.42 + 1638.487 )/ 2 )
=1520.15/1515.9535
=100.28 %

where Working Capital is:

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2715.57 + 594.037 + 368.232) - (1237.665 + 0 + 1749.124)
=691.05

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4524.603 + 445.239 + 257.527) - (2032.478 + 0 + 1854.401)
=1340.49

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Shinko's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=924.979/4472.045
=20.68 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Shinko EBIT Related Terms

Shinko EBIT Historical Data

* Premium members only.

The historical data trend for Shinko's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Shinko EBIT Chart

Shinko Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EBIT
Get a 7-Day Free Trial 611.78 760.61 635.23 676.02 924.98

Shinko Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only 428.21 178.77 497.25 164.90 760.08

TSE:7120 vs IBM, ACN, FISV: EBIT Comparison

For the Information Technology Services subindustry, Shinko's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Shinko EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Shinko's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Shinko's EV-to-EBIT falls into.


TSE:7120
85GF Score
Shinko Inc TSE:7120
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shinko EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was 円925 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of 円925 Mil mean?
Shinko (TSE:7120) has a EBIT of 円925 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Shinko.
Is Shinko's EBIT too high?
Shinko's current EBIT is 円925 Mil. Overall, Shinko has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shinko's EBIT compare to IBM and ACN?
Shinko's EBIT of 円925 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Shinko. Shinko's current EBIT is 円925 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shinko stock overvalued right now?
Based on GuruFocus' analysis, Shinko (TSE:7120) is currently considered Fairly Valued. The stock's GF Value™ is 円1,029.93, compared to a current price of 円1,092.00 — trading 6% above its estimated fair value. The current EBIT is 円925 Mil. Shinko's overall GF Score™ is 85/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Shinko (TSE:7120), the current EBIT is 円925 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Shinko (TSE:7120) Overvalued in 2026?

Based on GuruFocus' analysis, Shinko stock appears to be overvalued. The current stock price of 円1,092.00 is trading 6% above its estimated GF Value™ of 円1,029.93. GuruFocus considers Shinko to be Fairly Valued.

Key valuation signals for TSE:7120:

  • EBIT: 円925 Mil
  • GF Value™: 円1,029.93 vs. price of 円1,092.00 (6% above fair value)
  • GF Score™: 85/100 with 3 warning signs

No single metric tells the full story. See the TSE:7120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Shinko Business Description

Address 8F CS Tower, 5-20-8 Asakusabashi, Taito-ku, Tokyo, JPN, 111-0053
Shinko Inc is engaged in providing maintenance services for IT equipment and Staffing services. The company's services and products include; Maintenance services, human resource services, Introduction design and installation development services, and Network security-related products. The Maintenance services include Onsite maintenance service, Help desk service, Remote monitoring service, and call center service. The human resource services include an Engineer dispatch service and a Business contract. The Introduction design and installation development services include Network design and construction, Wireless environment construction, and Communication system construction.
85GF Score

Get the complete analysis for TSE:7120

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円1,092.00
Price
円1,029.93
GF Value