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Shoei Co. Ltd. (7839) (JP:7839)
:7839
Japanese Market

Shoei Co. Ltd. (7839) (7839) AI Stock Analysis

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JP

Shoei Co. Ltd. (7839)

(7839)

Rating:83Outperform
Price Target:
¥1,927.00
▲(10.62%Upside)
Shoei Co. Ltd. demonstrates robust financial health with strong profitability and a stable balance sheet, significantly contributing to the overall score. The valuation is appealing with a low P/E ratio and high dividend yield. Technical analysis shows mixed signals, with some potential downward pressure. The absence of earnings call and corporate events data did not impact the overall score calculation.

Shoei Co. Ltd. (7839) (7839) vs. iShares MSCI Japan ETF (EWJ)

Shoei Co. Ltd. (7839) Business Overview & Revenue Model

Company DescriptionShoei Co. Ltd. (7839) is a Japanese company renowned for its design and manufacturing of premium motorcycle helmets. Established in 1958, Shoei has built a global reputation for quality, safety, and innovation in protective headgear. The company primarily operates in the motorcycle and motorsport sectors, offering a wide range of helmets that cater to various riding styles and preferences, from racing to touring.
How the Company Makes MoneyShoei Co. Ltd. generates revenue primarily through the sale of its high-quality motorcycle helmets. The company targets both domestic and international markets, leveraging its strong brand reputation and commitment to safety and innovation to drive sales. Shoei's revenue streams include direct sales to consumers through its own retail channels as well as distribution through authorized dealers and partnerships worldwide. The company also invests in research and development to maintain its competitive edge and meet evolving safety standards, which in turn supports sustained demand for its products.

Shoei Co. Ltd. (7839) Financial Statement Overview

Summary
Shoei Co. Ltd. demonstrates strong financial performance with high profitability and growth. The company has a robust income statement, excellent balance sheet metrics with low leverage, and strong shareholder returns. However, the lack of detailed TTM cash flow data slightly limits the assessment of cash flow efficiency.
Income Statement
92
Very Positive
Shoei Co. Ltd. has demonstrated strong financial performance in the TTM period, with a gross profit margin of 44.5% and a net profit margin of 20.5%. The company has shown consistent revenue growth, with a 6.7% increase from the previous year. Its EBIT margin is robust at 28.1%, and the EBITDA margin is an impressive 31.6%, indicating efficient cost management and strong operational performance.
Balance Sheet
90
Very Positive
The company shows excellent financial stability with a very low debt-to-equity ratio of 0.02, indicating minimal leverage. Return on equity (ROE) stands at a healthy 26.8%, reflecting effective use of shareholder funds. The equity ratio is high at 86.7%, suggesting a strong equity base and low financial risk.
Cash Flow
70
Positive
While the company has strong free cash flow figures, data for the TTM period is missing for cash flow metrics. Historically, free cash flow has grown steadily, though the operating cash flow to net income ratio is not available for the TTM period, which could provide more insights into cash generation efficiency.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue35.48B35.79B33.62B28.95B23.75B19.48B
Gross Profit15.80B16.12B15.30B13.18B10.10B8.17B
EBITDA11.22B12.23B11.35B9.52B7.19B5.66B
Net Income7.27B7.38B7.07B6.02B4.41B3.35B
Balance Sheet
Total Assets31.29B35.09B32.81B29.43B23.78B20.84B
Cash, Cash Equivalents and Short-Term Investments12.34B15.35B14.77B13.89B11.43B9.38B
Total Debt485.00M512.92M459.16M416.40M405.40M271.62M
Total Liabilities4.14B5.54B5.66B6.53B5.25B5.21B
Stockholders Equity27.14B29.53B27.13B22.88B18.51B15.63B
Cash Flow
Free Cash Flow0.006.49B4.06B4.32B3.98B3.27B
Operating Cash Flow0.009.72B6.35B6.03B5.22B4.54B
Investing Cash Flow0.00-3.28B-2.35B-1.85B-1.35B-1.36B
Financing Cash Flow0.00-5.65B-3.46B-2.27B-2.11B-2.80B

Shoei Co. Ltd. (7839) Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1742.00
Price Trends
50DMA
1639.38
Positive
100DMA
1707.59
Positive
200DMA
1976.94
Negative
Market Momentum
MACD
35.86
Negative
RSI
63.55
Neutral
STOCH
78.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7839, the sentiment is Positive. The current price of 1742 is above the 20-day moving average (MA) of 1666.10, above the 50-day MA of 1639.38, and below the 200-day MA of 1976.94, indicating a neutral trend. The MACD of 35.86 indicates Negative momentum. The RSI at 63.55 is Neutral, neither overbought nor oversold. The STOCH value of 78.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7839.

Shoei Co. Ltd. (7839) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
83
Outperform
¥94.15B13.80
4.02%-2.75%-7.80%
77
Outperform
¥145.15B10.22
9.21%14.84%20.61%
76
Outperform
¥79.49B12.23
5.59%-1.74%-11.79%
75
Outperform
¥295.85B18.11
1.74%20.12%69.12%
74
Outperform
¥49.47B10.35
3.70%-1.61%-14.35%
56
Neutral
HK$24.59B3.77-2.05%6.59%-0.32%-67.68%
51
Neutral
¥22.99B56.80
3.55%-9.07%-85.45%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7839
Shoei Co. Ltd. (7839)
1,773.00
-146.14
-7.61%
JP:7740
Tamron Co., Ltd.
886.00
-154.15
-14.82%
JP:7867
Tomy Company, Ltd.
3,290.00
170.71
5.47%
JP:7944
Roland Corporation
3,050.00
-693.60
-18.53%
JP:7952
Kawai Musical Instruments Manufacturing Co., Ltd.
2,731.00
-393.05
-12.58%
JP:7990
GLOBERIDE, Inc.
2,160.00
158.58
7.92%

Shoei Co. Ltd. (7839) Corporate Events

Shoei Co., Ltd. Reports Decline in Q2 Financial Results
Apr 25, 2025

Shoei Co., Ltd. reported a decline in its consolidated financial results for the second quarter of the fiscal year ending September 30, 2025, with significant decreases in net sales, operating income, and ordinary income compared to the previous year. The company’s financial position shows a decrease in total assets and net assets, although the shareholders’ equity ratio remains strong at over 80%, indicating a stable financial foundation despite the recent downturn.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025