Shofu Inc. (JP:7979)
:7979
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Shofu Inc.
(7979)
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Rating:77Outperform
Price Target:
¥2,369.00
▲(26.68% Upside)
Action:Reiterated
Date:06/11/26
The score is driven primarily by strong financial quality (improving profitability and a near debt-free balance sheet), tempered by uneven cash generation with negative free cash flow in the latest year. Technicals are trend-positive but overbought, while valuation is supportive with a reasonable P/E and a solid dividend yield.
Positive Factors
Conservative balance sheet
Near-zero debt and a growing equity base provide enduring financial flexibility. A very conservative balance sheet reduces refinancing and interest-rate risk, supports capital allocation for R&D, dividends or opportunistic M&A, and materially lowers insolvency risk across cycles.
Negative Factors
Volatile free cash flow
Intermittent negative free cash flow despite positive operating cash flow signals inconsistent cash conversion. This raises funding risk for capex, dividends or growth initiatives, and may require using reserves or limiting investment unless cash conversion stabilizes.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Near-zero debt and a growing equity base provide enduring financial flexibility. A very conservative balance sheet reduces refinancing and interest-rate risk, supports capital allocation for R&D, dividends or opportunistic M&A, and materially lowers insolvency risk across cycles.
Read all positive factors
Shofu Inc. (7979) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥71.58B
Dividend Yield2.83%
Average Volume (3M)91.33K
Price to Earnings (P/E)14.8
Beta (1Y)0.64
Revenue Growth3.35%
EPS Growth13.06%
CountryJP
Employees1,369
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)113.92
Shares Outstanding35,788,177
10 Day Avg. Volume72,670
30 Day Avg. Volume91,333
Financial Highlights & Ratios
PEG Ratio0.93
Price to Book (P/B)1.23
Price to Sales (P/S)1.49
P/FCF Ratio-961.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)134.2
Revenue Forecast (FY)¥42.78B
Shofu Inc. Business Overview & Revenue Model
Company Description
Headquartered in Kyoto, Japan, Shofu Inc. is a long-standing global supplier of diverse dental materials and specialized equipment, having been established in 1922. The company offers an extensive product range, encompassing everything from artifi...
How the Company Makes Money
Shofu primarily makes money by manufacturing and selling dental-related products to professional customers (dental clinics, dental laboratories, and dental distributors). Key revenue streams include: (1) Dental consumables and materials: recurring...
Shofu Inc. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
64
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.75B | 39.99B | 38.70B | 35.08B | 31.68B | 28.14B |
| Gross Profit | 23.09B | 23.74B | 22.99B | 21.00B | 18.70B | 16.17B |
| EBITDA | 6.99B | 6.44B | 7.23B | 6.47B | 5.40B | 4.52B |
| Net Income | 4.05B | 4.89B | 4.32B | 3.65B | 3.13B | 2.55B |
Balance Sheet | ||||||
| Total Assets | 50.18B | 57.71B | 49.99B | 50.09B | 43.73B | 40.71B |
| Cash, Cash Equivalents and Short-Term Investments | 9.96B | 10.26B | 10.89B | 9.72B | 9.58B | 9.06B |
| Total Debt | 1.87B | 0.00 | 213.00M | 457.00M | 1.34B | 1.60B |
| Total Liabilities | 7.51B | 9.01B | 7.26B | 8.48B | 8.21B | 7.77B |
| Stockholders Equity | 42.58B | 48.60B | 42.66B | 41.53B | 35.44B | 32.88B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -62.00M | 2.22B | 1.38B | 1.54B | 2.67B |
| Operating Cash Flow | 0.00 | 3.37B | 3.45B | 3.09B | 3.17B | 3.74B |
| Investing Cash Flow | 0.00 | -2.07B | -914.00M | -1.29B | -1.29B | -1.29B |
| Financing Cash Flow | 0.00 | -1.97B | -1.78B | -2.10B | -1.46B | -1.07B |
Shofu Inc. Technical Analysis
Positive
1870.00
Price Trends
1798.38
Positive
1780.30
Positive
1817.35
Positive
Market Momentum
73.28
Negative
63.88
Neutral
41.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7979, the sentiment is Positive. The current price of 1870 is below the 20-day moving average (MA) of 1916.85, above the 50-day MA of 1798.38, and above the 200-day MA of 1817.35, indicating a bullish trend. The MACD of 73.28 indicates Negative momentum. The RSI at 63.88 is Neutral, neither overbought nor oversold. The STOCH value of 41.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7979.
Shofu Inc. Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥71.58B | 14.77 | ― | 2.83% | 3.35% | 13.06% | |
77 Outperform | ¥6.76B | 13.46 | ― | 2.95% | 7.03% | 5.38% | |
71 Outperform | ¥168.66B | 26.38 | ― | 2.73% | 6.29% | -7.19% | |
69 Neutral | ¥3.33B | 13.29 | ― | 2.21% | 6.47% | 263.24% | |
65 Neutral | ¥5.61B | 8.02 | ― | 1.93% | 10.49% | -10.04% | |
63 Neutral | ¥250.46B | 217.40 | -2.06% | 2.66% | 9.95% | -79.87% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
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Shofu Inc. Corporate Events
Shofu Declares ¥60 Annual Dividend on Record Earnings, Adds Special Payout
May 20, 2026
Shofu Inc. has approved a year-end dividend of ¥39 per share for the fiscal year ended March 31, 2026, including a special dividend of ¥5, bringing the total annual dividend to ¥60 per share when combined with the interim dividend o...
Shofu to Abolish Executive Advisers System in Governance Overhaul
May 20, 2026
Shofu Inc. has resolved at its board meeting to partially amend its Articles of Incorporation by abolishing its Executive Advisers system, a move it says is aimed at enhancing management transparency and strengthening its corporate governance stru...
Shofu Lifts Year-End Dividend and Adds Special Payout on Record Earnings
May 13, 2026
Shofu Inc. has revised its dividend forecast for the fiscal year ended March 31, 2026, reflecting record earnings and its policy of stable, enhanced shareholder returns. The board approved an increase in the ordinary year-end dividend from ¥3...
Shofu lifts FY2026 sales on dental demand, ramps up investment for growth
May 13, 2026
Shofu Inc. reported consolidated net sales of ¥39,994 million for the fiscal year ended March 31, 2026, up 3.3% year on year, driven mainly by steady growth in its core dental business and solid overseas demand, particularly for chemical and ...
Shofu Lifts Full-Year Profit and Dividends on Solid Sales Growth
May 13, 2026
Shofu reported consolidated net sales of ¥39.99 billion for the year ended March 31, 2026, up 3.3% year on year, with profit attributable to owners of the parent rising 13.2% to ¥4.89 billion despite a slight decline in operating margin....
Shofu Abolishes Executive Advisers System to Tighten Governance
May 13, 2026
Shofu Inc. has resolved to abolish its Executive Advisers system effective June 24, 2026, as part of an effort to strengthen corporate governance and enhance management transparency. Under the new framework, officers will in principle leave the co...
Shofu Revamps Leadership Structure With New CEO and CFO Roles
May 13, 2026
Shofu Inc. has announced a significant renewal of its top management structure, prompted by its internal retirement age rules and a planned generational transition. The board has approved the creation of CEO, CFO and CSO roles to strengthen execut...
Shofu Reshapes Executive and General Affairs Leadership
Mar 11, 2026
Shofu Inc. announced that its board of directors has approved changes to its senior management structure, effective April 1, 2026, focusing on the Human Resources and General Affairs functions. Managing Executive Officer Shinya Teramoto will step ...
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.