Shofu Inc. (7979) AI Stock Analysis

• Market Cap: ¥65.98B
• Dividend Yield: 2.83%
• Average Volume (3M): 92.06K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.64
• Revenue Growth: 3.69%
• EPS Growth: 1.86%
• Country: JP
• Employees: 1,369
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 48.99
• Shares Outstanding: 35,788,177
• 10 Day Avg. Volume: 121,570
• 30 Day Avg. Volume: 92,063
• PEG Ratio: 0.97
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.94
• P/FCF Ratio: 33.82
• 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): 122.4
• Revenue Forecast (FY): ¥40.46B

• Rating: 69 Neutral
• Price Target: ¥2,079.00 ▲(8.96% Upside)

Shofu Inc. demonstrates strong financial performance with robust revenue growth and profitability, contributing significantly to the overall score. However, technical analysis indicates a bearish trend, and the valuation is fair but not exceptional. The absence of earnings call data and corporate events limits further insights.

Shofu Inc. Business Overview & Revenue Model

Company Description

Shofu Inc. (7979) is a leading manufacturer and supplier of dental materials and equipment, primarily operating in the dental health sector. The company offers a diverse range of products, including dental ceramics, composites, polishing materials, and various dental equipment. With a focus on innovation and quality, Shofu serves dental professionals and laboratories worldwide, aiming to enhance dental care and treatment outcomes.

How the Company Makes Money

Shofu Inc. generates revenue primarily through the sale of its dental products and materials. The company's key revenue streams include the direct sale of dental ceramics and composites to dental professionals and laboratories, as well as the provision of dental equipment. In addition to product sales, Shofu benefits from strategic partnerships and collaborations with dental institutions and professionals that enhance its market presence. The company also invests in research and development to innovate and expand its product offerings, which contributes to its competitive advantage and earnings growth.

Shofu Inc. Financial Statement Overview

Summary

Shofu Inc. exhibits strong financial health with impressive revenue growth and profitability. The balance sheet is robust with low leverage, and cash flows are solid, though the sustainability of free cash flow growth should be watched. The company is well-positioned in the medical instruments and supplies industry, with a stable financial foundation and growth potential.

Income Statement

Shofu Inc. has demonstrated strong revenue growth with a 45.7% increase in the latest year, indicating robust demand for its products. The company maintains healthy profitability with a gross profit margin of 59.4% and a net profit margin of 11.2%. EBIT and EBITDA margins are also solid at 15.9% and 18.7%, respectively, showcasing operational efficiency. Overall, the income statement reflects a positive growth trajectory and strong profitability.

Balance Sheet

The balance sheet of Shofu Inc. is stable with a low debt-to-equity ratio, indicating minimal leverage and financial risk. The return on equity is 10.1%, reflecting effective use of shareholder funds to generate profits. The equity ratio stands at 85.3%, suggesting a strong capital structure. While the company is financially sound, the ROE could be improved to enhance shareholder returns.

Cash Flow

Shofu Inc. shows a strong operating cash flow to net income ratio of 0.66, indicating efficient cash generation from operations. The free cash flow to net income ratio is 0.64, reflecting good cash conversion. However, the free cash flow growth rate is extremely high due to a low base effect, which may not be sustainable. Overall, the cash flow position is healthy but requires monitoring for consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.75B	38.70B	35.08B	31.68B	28.14B	24.68B
Gross Profit	23.09B	22.99B	21.00B	18.70B	16.17B	13.60B
EBITDA	6.99B	7.23B	6.47B	5.40B	4.52B	3.26B
Net Income	4.05B	4.32B	3.65B	3.13B	2.55B	1.67B
Balance Sheet
Total Assets	50.18B	49.99B	50.09B	43.73B	40.71B	37.81B
Cash, Cash Equivalents and Short-Term Investments	9.96B	10.89B	9.72B	9.58B	9.06B	6.94B
Total Debt	1.87B	213.00M	281.00M	1.19B	1.48B	1.87B
Total Liabilities	7.51B	7.26B	8.48B	8.21B	7.77B	7.62B
Stockholders Equity	42.58B	42.66B	41.53B	35.44B	32.87B	30.14B
Cash Flow
Free Cash Flow	0.00	2.22B	1.38B	1.54B	2.67B	1.73B
Operating Cash Flow	0.00	3.45B	3.09B	3.17B	3.74B	2.83B
Investing Cash Flow	0.00	-914.00M	-1.29B	-1.29B	-1.29B	-4.08B
Financing Cash Flow	0.00	-1.78B	-2.10B	-1.46B	-1.07B	3.02B

Shofu Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1908.00
• 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:7979, the sentiment is Negative. The current price of 1908 is above the 20-day moving average (MA) of 1898.00, below the 50-day MA of 1927.82, and below the 200-day MA of 2008.77, indicating a bearish trend. The MACD of -24.23 indicates Positive momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 30.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7979.

Shofu Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5889	73 Outperform	¥48.89B	12.02	―	3.15%	12.18%	34.17%
7730	73 Outperform	¥143.44B	27.76	―	2.65%	5.10%	-17.80%
7979	69 Neutral	¥65.98B	14.45	―	2.83%	3.69%	1.86%
7780	69 Neutral	€93.27B	19.20	6.01%	2.28%	3.13%	2.91%
7743	67 Neutral	¥17.61B	15.80	―	2.60%	2.38%	-48.68%
3593	64 Neutral	$116.42B	207.91	0.78%	1.61%	-2.06%	-79.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Shofu Inc. Corporate Events

Shofu Inc. Revises Earnings Forecast Amid Market Challenges

Shofu Inc. has revised its earnings forecast for the first half of the fiscal year ending March 31, 2026, due to lower-than-expected demand in Japan and challenging overseas business conditions. Despite a decrease in net sales, the company anticipates higher operating and ordinary income due to deferred expenses and increased net income from the early sale of cross-shareholdings. The full-year earnings forecast remains unchanged, with the company aiming to maintain profitability while monitoring the business environment.

The most recent analyst rating on (JP:7979) stock is a Buy with a Yen2171.00 price target. To see the full list of analyst forecasts on Shofu Inc. stock, see the JP:7979 Stock Forecast page.

Shofu Inc. Reports Q1 Financial Results with Mixed Performance

Shofu Inc. reported its consolidated financial results for the first quarter ending June 30, 2025, showing a slight increase in net sales by 0.5% compared to the previous year. However, the company experienced declines in operating income, ordinary income, and net income attributable to owners, with decreases of 3.6%, 18.1%, and 23.7% respectively. The company’s financial position remains stable with a high equity ratio of 84.8%. Despite the challenges, Shofu Inc. maintains its forecast for the fiscal year ending March 31, 2026, with expected growth in net sales by 5.6%.