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

• Market Cap: ¥87.81B
• Dividend Yield: 3.29%
• Average Volume (3M): 188.59K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.45
• Revenue Growth: -9.58%
• EPS Growth: -14.06%
• Country: JP
• Employees: 635
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 28.11
• Shares Outstanding: 53,713,715
• 10 Day Avg. Volume: 170,600
• 30 Day Avg. Volume: 188,593
• PEG Ratio: -1.04
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 2.86
• P/FCF Ratio: 10.95
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 125
• Revenue Forecast (FY): ¥34.54B

• Rating: 79 Outperform
• Price Target: ¥1,846.00 ▲(3.88% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 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

Low leverage and a healthy equity ratio give Shoei durable financial flexibility. Conservative capital structure reduces refinancing risk, supports investment in tooling and R&D through cycles, and helps preserve credit access for growth or downturn management.

Strong cash generation

Consistent operating cash conversion and historically positive free cash flow enable self-funding of capex and dividends. Robust cash generation sustains operations, funds strategic investments, and enhances resilience against cyclical revenue swings over the medium term.

Sustainable profitability and margins

Stable gross and net margins alongside solid EBIT/EBITDA reflect efficient manufacturing and pricing discipline. Margin durability supports reinvestment capacity, competitive resilience, and the ability to absorb input cost variation over multiple quarters.

Negative Factors

Declining revenue trend

Material revenue decline over recent periods signals weakening end-market demand or lost scale. Sustained top-line erosion can strain fixed-cost absorption and reduce capacity to invest, making medium-term recovery and margin maintenance more challenging.

Earnings contraction

Substantial EPS decline reduces retained earnings and internal funding for innovation or capex. Falling earnings may reflect margin pressure or lower volumes, limiting financial flexibility and increasing sensitivity to further revenue weakness.

End-market cyclicality exposure

Concentration in semiconductor/electronics components exposes Shoei to procyclical order patterns and capital spending swings. This structural demand volatility can cause uneven utilization, unpredictable revenues, and pressure on investment planning across several quarters.

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

Company Description

Shoei 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 Money

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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

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

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

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.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	32.36B	35.79B	33.62B	28.95B	23.75B
Gross Profit	14.78B	15.88B	15.10B	13.01B	9.94B
EBITDA	10.36B	12.07B	11.31B	9.40B	7.12B
Net Income	6.32B	7.38B	7.07B	6.02B	4.41B
Balance Sheet
Total Assets	38.15B	35.38B	32.92B	29.43B	23.87B
Cash, Cash Equivalents and Short-Term Investments	19.94B	15.35B	14.77B	13.89B	11.43B
Total Debt	467.19M	512.92M	459.16M	416.40M	405.40M
Total Liabilities	5.92B	5.84B	5.78B	6.53B	5.35B
Stockholders Equity	32.22B	29.53B	27.13B	22.88B	18.51B
Cash Flow
Free Cash Flow	8.44B	6.56B	4.12B	4.39B	4.05B
Operating Cash Flow	9.76B	9.72B	6.35B	6.03B	5.22B
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 Price: 1777.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 1777 is above the 20-day moving average (MA) of 1680.90, above the 50-day MA of 1729.48, and above the 200-day MA of 1735.89, indicating a bearish trend. The MACD of -33.61 indicates Positive momentum. The RSI at 41.94 is Neutral, neither overbought nor oversold. The STOCH value of 21.37 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8135	81 Outperform	¥9.53B	16.36	―	3.96%	7.77%	247.26%
7839	79 Outperform	¥87.81B	15.81	―	3.29%	-9.58%	-14.06%
7951	67 Neutral	¥551.96B	11.82	3.68%	2.35%	-4.47%	-4.52%
7309	63 Neutral	¥1.44T	42.60	5.92%	1.93%	7.64%	22.13%
7906	62 Neutral	¥299.94B	21.92	15.93%	0.72%	20.06%	17.89%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
7990	61 Neutral	¥47.99B	11.29	―	3.94%	0.74%	41.25%

Shoei Co. Ltd. (7839) Corporate Events

Shoei Nears Completion of Share Buyback, Plans Full Cancellation of Treasury Stock

Shoei Co., Ltd. has completed a round of share repurchases, acquiring 406,700 common shares on the market between February 1 and February 27, 2026, for a total of 700,882,900 yen, using discretionary trading. This forms part of a broader buyback program approved in November 2025, under which the company has now acquired 1,395,100 shares for 2,499,892,600 yen, and it plans to cancel all repurchased shares, effectively reducing the total shares outstanding and potentially enhancing shareholder value.

Under the board-approved framework, Shoei had set an upper limit of 1.7 million shares and 2.5 billion yen for the buyback to run through June 30, 2026, achieving 82.1% of the volume cap but essentially 100% of the monetary cap by late February. The planned cancellation of all treasury shares signals a commitment to capital efficiency and shareholder returns, which may strengthen earnings per share metrics and consolidate the company’s equity structure in the competitive helmet and safety equipment market.

The most recent analyst rating on (JP:7839) stock is a Buy with a Yen1944.00 price target. To see the full list of analyst forecasts on Shoei Co. Ltd. (7839) stock, see the JP:7839 Stock Forecast page.

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

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

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

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

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

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

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.