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

• Market Cap: ¥98.87B
• Dividend Yield: 3.8%
• Average Volume (3M): 171.30K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.47
• Revenue Growth: -3.75%
• EPS Growth: -8.15%
• Country: JP
• Employees: 635
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Leisure
• EPS (TTM): 30.19
• Shares Outstanding: 53,713,715
• 10 Day Avg. Volume: 184,980
• 30 Day Avg. Volume: 171,300
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,074.00
• Price Target Upside: 12.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 79 Outperform
• Price Target: ¥2,074.00 ▲(12.60% Upside)

Shoei Co. Ltd. demonstrates strong financial health with robust profitability and low leverage, contributing significantly to the overall score. The stock's valuation is attractive with a reasonable P/E ratio and a solid dividend yield. Technical analysis indicates moderate momentum, supporting a positive outlook.

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

Company Description

Shoei Co. Ltd. is a Japanese company renowned for its superior quality motorcycle helmets and accessories. The company operates primarily within the automotive and consumer goods sectors. Its core products include a range of high-performance helmets designed for both professional and recreational motorcycle riders, which are recognized for their safety features, innovative design, and comfort.

How the Company Makes Money

Shoei 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. has shown strong financial performance with excellent profitability metrics, including a high gross profit margin of 44.5% and net profit margin of 20.5%. The company has a very low debt-to-equity ratio of 0.02 and a high equity ratio of 86.7%, indicating strong financial stability. However, the lack of detailed TTM cash flow data limits a full assessment of cash flow efficiency.

Income Statement

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

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

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.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	35.79B	33.62B	28.95B	23.75B	19.48B
Gross Profit	16.12B	15.30B	13.18B	10.10B	8.17B
EBITDA	12.23B	11.35B	9.52B	7.19B	5.66B
Net Income	7.38B	7.07B	6.02B	4.41B	3.35B
Balance Sheet
Total Assets	35.09B	32.81B	29.43B	23.78B	20.84B
Cash, Cash Equivalents and Short-Term Investments	15.35B	14.77B	13.89B	11.43B	9.38B
Total Debt	512.92M	459.16M	416.40M	405.40M	271.62M
Total Liabilities	5.54B	5.66B	6.53B	5.25B	5.21B
Stockholders Equity	29.53B	27.13B	22.88B	18.51B	15.63B
Cash Flow
Free Cash Flow	6.49B	4.06B	4.32B	3.98B	3.27B
Operating Cash Flow	9.72B	6.35B	6.03B	5.22B	4.54B
Investing Cash Flow	-3.28B	-2.35B	-1.85B	-1.35B	-1.36B
Financing Cash Flow	-5.65B	-3.46B	-2.27B	-2.11B	-2.80B

Shoei Co. Ltd. (7839) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1842.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 1842 is above the 20-day moving average (MA) of 1841.30, above the 50-day MA of 1776.04, and below the 200-day MA of 1905.22, indicating a neutral trend. The MACD of 25.50 indicates Positive momentum. The RSI at 62.28 is Neutral, neither overbought nor oversold. The STOCH value of 57.72 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7944	81 Outperform	¥88.12B	14.78		5.04%	-4.39%	-27.30%
7839	79 Outperform	¥98.87B	15.55		3.80%	-3.75%	-8.15%
7740	77 Outperform	¥168.15B	12.38		12.34%	2.17%	0.64%
7990	74 Outperform	¥54.27B	11.00		3.43%	0.66%	31.91%
7867	70 Neutral	¥308.49B	18.24		1.65%	17.05%	66.00%
Sector *	61 Neutral	$17.75B	12.51	-5.49%	3.06%	1.43%	-14.10%
7952	57 Neutral	¥22.17B	43.31		3.68%	-6.74%	-69.87%

Shoei Co. Ltd. (7839) Corporate Events

Shoei Co., Ltd. Announces New Outside Director Appointment

Shoei Co., Ltd. announced an informal decision by its Board of Directors to appoint Naomi Kodama as a new Outside Director, with formal approval expected at the upcoming Annual General Meeting in December 2025. This strategic appointment aims to enhance the company’s governance and align with Tokyo Stock Exchange standards, potentially impacting its industry positioning and stakeholder relations positively.

Shoei Co., Ltd. Reports Decline in Q3 Financial Results

Shoei Co., Ltd. reported its consolidated financial results for the third quarter of the fiscal year ending September 30, 2025, showing a decline in net sales, operating income, and profit attributable to owners of the parent compared to the previous year. Despite these declines, the company remains focused on maintaining its market position and adapting to changing market conditions.