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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:7839

Shoei Co. Ltd. (7839)

(7839)

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Outperform 79 (OpenAI - 5.2)
Rating:79Outperform
Price Target:
¥1,870.00
▲(5.23% Upside)
Action:ReiteratedDate:12/11/25
Shoei Co. Ltd. scores well due to its strong financial performance and positive technical indicators. The company's solid balance sheet and efficient cash flow management are significant strengths. The valuation is reasonable, supported by a decent dividend yield. The absence of earnings call data and corporate events does not detract from the overall positive outlook.
Positive Factors
Conservative balance sheet and low leverage
Low leverage and a healthy equity ratio give Shoei financial flexibility to fund capex, R&D, dividends or weather revenue cyclicality. A conservative capital structure reduces refinancing risk and supports strategic investments and stability over multi-quarter horizons.
Strong cash flow generation
Shoei's efficient cash conversion and positive free cash flow history provide durable internal funding for operations, reinvestment and shareholder returns. Reliable cash generation lowers reliance on external finance and supports resilience through industry cycles.
Consistent and healthy profitability margins
Stable gross and net margins with solid EBIT/EBITDA indicate operational efficiency and pricing power in engineered components. Margin durability helps preserve earnings and cashflow during top-line pressure, supporting long-term competitiveness and reinvestment.
Negative Factors
Declining revenue growth
Nearly 10% reported revenue decline signals weakening demand or timing shifts in orders. Prolonged top-line contraction erodes operating leverage, pressures margins and free cash flow, and makes sustaining investment in products and customer programs more difficult.
Weak EPS growth
A ~17.6% EPS decline implies earnings compression beyond revenue trends, pointing to margin or cost pressures. Continued EPS weakness can limit retained earnings, reduce capacity for internal investment and shareholder returns, and constrain strategic flexibility.
Exposure to cyclical semiconductor/electronics markets
Dependence on electronics and semiconductor OEMs exposes Shoei to pronounced industry cyclicality and capex swings. End-market volatility can produce large order variability, inventory adjustments and revenue volatility that hinder consistent long-term growth visibility.

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

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

Company DescriptionShoei Co., Ltd. manufactures and sells helmets for government agencies under the SHOEI brand worldwide. The company provides full-face, system, jet, off-road, and trial helmets, as well as parts and accessories. It also offers its products online. Shoei Co., Ltd. was incorporated in 1959 and is headquartered in Tokyo, Japan.
How the Company Makes MoneyShoei Co. Ltd. generates revenue through the design, manufacture, and sale of motorcycle helmets and related accessories. The company's key revenue streams include retail sales via a global network of distributors and direct sales to consumers through its online platform. Shoei's earnings are significantly supported by its reputation for quality and safety, which allows it to command premium pricing. Additionally, the company benefits from partnerships with professional racing teams and sponsorships, which enhance its brand visibility and appeal. A strong focus on research and development ensures continuous innovation, helping maintain its competitive edge and customer loyalty in the market.

Shoei Co. Ltd. (7839) Financial Statement Overview

Summary
Shoei Co. Ltd. presents a solid financial position with strong profitability, a stable balance sheet, and healthy cash flow generation. Despite a recent dip in revenue growth, the company's efficient operations and conservative financial management provide a strong foundation for future performance.
Income Statement
75
Positive
Shoei Co. Ltd. has demonstrated strong profitability with a consistent gross profit margin and net profit margin over the years. However, the recent decline in revenue growth rate by -2.598% in the latest year indicates a potential challenge in maintaining growth momentum. Despite this, the company maintains healthy EBIT and EBITDA margins, reflecting efficient operations.
Balance Sheet
80
Positive
The company exhibits a robust balance sheet with a low debt-to-equity ratio, indicating conservative leverage and financial stability. The return on equity remains strong, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a solid capital structure with a significant portion of assets financed by equity.
Cash Flow
78
Positive
Shoei Co. Ltd. has shown strong cash flow generation with a high operating cash flow to net income ratio, indicating efficient cash conversion. The free cash flow growth rate has been positive over the years, although it experienced a slight decline recently. The free cash flow to net income ratio remains robust, highlighting the company's ability to generate cash relative to its earnings.
BreakdownSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue32.36B35.79B33.62B28.95B23.75B
Gross Profit14.78B16.12B15.30B13.18B10.10B
EBITDA10.37B12.23B11.35B9.52B7.19B
Net Income6.32B7.38B7.07B6.02B4.41B
Balance Sheet
Total Assets37.85B35.09B32.81B29.43B23.78B
Cash, Cash Equivalents and Short-Term Investments19.94B15.35B14.77B13.89B11.43B
Total Debt467.19M512.92M559.16M416.40M471.40M
Total Liabilities5.61B5.54B5.66B6.53B5.25B
Stockholders Equity32.22B29.53B27.13B22.88B18.51B
Cash Flow
Free Cash Flow8.44B6.49B4.06B4.32B3.98B
Operating Cash Flow9.76B9.72B6.35B6.03B5.22B
Investing Cash Flow-1.39B-3.28B-2.35B-1.85B-1.35B
Financing Cash Flow-3.77B-5.65B-3.46B-2.27B-2.11B

Shoei Co. Ltd. (7839) Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1777.00
Price Trends
50DMA
1776.08
Negative
100DMA
1760.07
Negative
200DMA
1724.70
Negative
Market Momentum
MACD
-14.44
Negative
RSI
42.20
Neutral
STOCH
49.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7839, the sentiment is Negative. The current price of 1777 is above the 20-day moving average (MA) of 1729.55, above the 50-day MA of 1776.08, and above the 200-day MA of 1724.70, indicating a bearish trend. The MACD of -14.44 indicates Negative momentum. The RSI at 42.20 is Neutral, neither overbought nor oversold. The STOCH value of 49.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7839.

Shoei Co. Ltd. (7839) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
¥93.07B15.213.29%-9.58%-14.06%
75
Outperform
¥172.65B14.233.47%-5.65%-16.35%
64
Neutral
¥25.77B25.013.56%-5.25%-4.95%
63
Neutral
¥249.72B21.662.18%10.50%27.82%
63
Neutral
¥103.81B48.604.78%-1.25%9.33%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
¥50.91B10.333.94%0.74%41.25%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7839
Shoei Co. Ltd. (7839)
1,704.00
-115.55
-6.35%
JP:7740
Tamron Co., Ltd.
1,025.00
137.05
15.43%
JP:7867
Tomy Company, Ltd.
2,722.50
-976.92
-26.41%
JP:7944
Roland Corporation
3,980.00
467.26
13.30%
JP:7952
Kawai Musical Instruments Manufacturing Co., Ltd.
2,952.00
-26.75
-0.90%
JP:7990
GLOBERIDE, Inc.
2,310.00
491.16
27.00%

Shoei Co. Ltd. (7839) Corporate Events

Shoei Advances Share Buyback, Nears ¥1.8 Billion in Treasury Stock Acquisitions
Feb 3, 2026

Shoei Co. Ltd. has disclosed the latest progress of its ongoing share buyback program, reporting that it repurchased 410,000 shares of its common stock on the market between January 1 and January 31, 2026, for a total of approximately ¥739 million under a discretionary trading agreement. This transaction forms part of a broader board-approved repurchase and cancellation framework authorized in November 2025, under which the company may buy back up to 1.7 million shares for as much as ¥2.5 billion by June 30, 2026; to date, Shoei has acquired 988,400 shares totaling about ¥1.8 billion, all of which are slated for cancellation, signaling a continued focus on capital efficiency and shareholder returns through a reduced share count.

The most recent analyst rating on (JP:7839) stock is a Buy with a Yen2273.00 price target. To see the full list of analyst forecasts on Shoei Co. Ltd. (7839) stock, see the JP:7839 Stock Forecast page.

Shoei’s First-Quarter Earnings Slide on Double-Digit Drop in Sales and Profit
Jan 30, 2026

Shoei reported consolidated results for the first quarter of the fiscal year ending September 30, 2026, showing a sharp year-on-year decline in performance, with net sales of ¥7.51 billion, operating income of ¥2.13 billion, ordinary income of ¥2.05 billion, and profit attributable to owners of parent of ¥1.47 billion, representing decreases of 18.4%, 18.4%, 17.6%, and 17.0% respectively from the same period a year earlier. Earnings per share fell from ¥34.34 to ¥28.11 as profitability weakened, signaling a cooling in business momentum early in the fiscal year and putting pressure on returns to shareholders, even though the company has not indicated any changes in accounting methods or extraordinary items that would distort these trends.

The most recent analyst rating on (JP:7839) stock is a Buy with a Yen2101.00 price target. To see the full list of analyst forecasts on Shoei Co. Ltd. (7839) stock, see the JP:7839 Stock Forecast page.

Shoei’s Q1 Profit and Revenue Slip but Outpace Internal Forecasts
Jan 30, 2026

Shoei reported year-on-year declines in both revenue and profit for the first quarter of the fiscal year ending September 30, 2026, indicating a softer start compared with the same period a year earlier. However, management noted that earnings are tracking ahead of the full-year forecast announced at the start of the fiscal year, suggesting that despite the weaker quarterly comparison, the company is outperforming its own expectations and may be on a firmer trajectory than headline declines imply.

The most recent analyst rating on (JP:7839) stock is a Buy with a Yen2101.00 price target. To see the full list of analyst forecasts on Shoei Co. Ltd. (7839) stock, see the JP:7839 Stock Forecast page.

Shoei Completes Treasury Share Disposal for Restricted Stock Compensation
Jan 20, 2026

Shoei Co., Ltd. has completed the payment procedures for the disposal of 22,100 treasury shares to be used as restricted stock compensation, following a resolution passed by its board on December 24, 2025. The shares, disposed of at 1,821 yen per share for a total value of 40.24 million yen, were allotted to seven directors, including outside directors, and one corporate auditor, reinforcing an incentive structure that more closely ties the remuneration of key management and governance officers to the company’s share performance and long‑term corporate value.

The most recent analyst rating on (JP:7839) stock is a Buy with a Yen2273.00 price target. To see the full list of analyst forecasts on Shoei Co. Ltd. (7839) stock, see the JP:7839 Stock Forecast page.

Shoei Reports Progress on Share Buyback, Plans Cancellation of All Repurchased Stock
Jan 7, 2026

Shoei Co., Ltd. has reported the progress of its ongoing share buyback program authorized by its board in November 2025, repurchasing 358,200 shares of common stock for approximately 658 million yen on the market between December 1 and December 31, 2025 under a discretionary trading agreement. Under the broader resolution allowing up to 1.7 million shares or 2.5 billion yen in repurchases through June 30, 2026, the company has so far acquired a total of 578,400 shares worth about 1.06 billion yen, with all repurchased shares slated for cancellation, a move that signals a continued focus on capital efficiency and shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (JP:7839) stock is a Buy with a Yen2186.00 price target. To see the full list of analyst forecasts on Shoei Co. Ltd. (7839) stock, see the JP:7839 Stock Forecast page.

Shoei to Allot Treasury Shares as Restricted Stock to Directors and Auditor
Dec 24, 2025

Shoei Co., Ltd. has approved the disposal of 22,100 treasury shares of its common stock on January 20, 2026, at 1,821 yen per share, for a total value of 40,244,100 yen, to be allotted as restricted stock to seven directors (including outside directors) and one corporate auditor. This transaction is part of the restricted stock compensation plan introduced in 2020 to provide long-term incentives for executives and auditors, linking their compensation to the company’s share price and corporate value, and imposing transfer restrictions until retirement, with provisions for forfeiture or early lifting of restrictions in cases such as justified early resignation or organizational restructuring, thereby reinforcing governance and alignment with shareholder interests.

The most recent analyst rating on (JP:7839) stock is a Buy with a Yen2186.00 price target. To see the full list of analyst forecasts on Shoei Co. Ltd. (7839) stock, see the JP:7839 Stock Forecast page.

Shoei Co., Ltd. Announces Dividend Distribution
Nov 28, 2025

Shoei Co., Ltd. announced a resolution to distribute dividends from surplus, with a record date of September 30, 2025, to be submitted for approval at the upcoming Annual General Meeting. The company decided on a year-end dividend of 60 yen per share, maintaining a 50% payout ratio in line with its profit distribution policy, despite a decrease from the previous fiscal year’s 70 yen per share.

The most recent analyst rating on (JP:7839) stock is a Buy with a Yen2046.00 price target. To see the full list of analyst forecasts on Shoei Co. Ltd. (7839) stock, see the JP:7839 Stock Forecast page.

Shoei Co., Ltd. Announces Treasury Share Acquisition Plan
Nov 14, 2025

Shoei Co., Ltd. has announced its decision to acquire treasury shares as part of its strategy to enhance shareholder returns and improve capital efficiency. The company plans to acquire up to 1,700,000 common shares, representing 3.2% of its total shares, with a maximum value of 2.5 billion yen, between November 17, 2025, and June 30, 2026. All acquired shares will be canceled, reflecting Shoei’s commitment to returning profits to shareholders and adapting to changes in the business environment.

The most recent analyst rating on (JP:7839) stock is a Buy with a Yen2046.00 price target. To see the full list of analyst forecasts on Shoei Co. Ltd. (7839) stock, see the JP:7839 Stock Forecast page.

Shoei Co. Ltd. Diversifies into Suitcase Market
Nov 14, 2025

Shoei Co. Ltd. announced its decision to diversify its business by entering the suitcase market, leveraging its expertise in safety and design. The company plans to launch a carry-on suitcase model made from glass fiber reinforced plastic, aiming to expand its product offerings and reduce reliance on its core helmet business. This strategic move is expected to contribute to Shoei’s growth and stabilize its market position by tapping into the growing global demand for suitcases.

The most recent analyst rating on (JP:7839) stock is a Buy with a Yen2046.00 price target. To see the full list of analyst forecasts on Shoei Co. Ltd. (7839) stock, see the JP:7839 Stock Forecast page.

Shoei Co., Ltd. Reports Decline in FY2025 Financial Performance
Nov 14, 2025

Shoei Co., Ltd. reported a decline in its financial performance for the fiscal year ended September 30, 2025, with decreases in net sales, operating income, ordinary income, and net income compared to the previous year. This downturn may impact the company’s market position and stakeholder confidence.

The most recent analyst rating on (JP:7839) stock is a Buy with a Yen2046.00 price target. To see the full list of analyst forecasts on Shoei Co. Ltd. (7839) stock, see the JP:7839 Stock Forecast page.

Shoei Co., Ltd. Revises Year-End Dividend Forecast
Nov 14, 2025

Shoei Co., Ltd. has announced a revision to its year-end dividend forecast for the fiscal year ended September 30, 2025. The company has increased the dividend to 60.00 yen per share, up from the previously announced 59.00 yen, due to a rise in profit attributable to owners of the parent by 98 million yen. This adjustment aligns with the company’s basic policy on profit distribution, reflecting approximately 50% of the consolidated net income per share.

The most recent analyst rating on (JP:7839) stock is a Buy with a Yen2046.00 price target. To see the full list of analyst forecasts on Shoei Co. Ltd. (7839) stock, see the JP:7839 Stock Forecast page.

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: Dec 11, 2025