Shofu Inc. (7979) AI Stock Analysis

• Market Cap: ¥69.97B
• Dividend Yield: 2.46%
• Average Volume (3M): 55.34K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 0.63
• Revenue Growth: 6.82%
• EPS Growth: -1.08%
• Country: JP
• Employees: 1,369
• Sector: Healthcare
• Sector Strength: 43
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 24.03
• Shares Outstanding: 35,788,177
• 10 Day Avg. Volume: 80,560
• 30 Day Avg. Volume: 55,336
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: ―

Shofu Inc.'s overall stock score is driven by its strong financial health and profitability, which are slightly offset by uncertainties in cash flow data. The current technical indicators suggest a bearish trend, while the valuation remains reasonable with a supportive dividend yield. The absence of earnings call and corporate event data limits insights into recent company activities.

Shofu Inc. Business Overview & Revenue Model

Company Description

Shofu Inc. (7979) is a Japanese company specializing in the manufacturing and distribution of dental materials and equipment. Established in 1922, Shofu operates within the healthcare and dental industries, providing a wide range of products including dental polishing materials, abrasives, impression materials, and dental restoration systems. The company is renowned for its innovation and quality in dental care solutions, serving dental professionals worldwide.

How the Company Makes Money

Shofu Inc. generates revenue primarily through the sale of its dental materials and equipment. The company's key revenue streams include the distribution of consumables such as abrasives and polishing materials, as well as durable equipment used in dental procedures. Shofu maintains a global distribution network, allowing it to reach dental professionals in various international markets. Significant partnerships with dental clinics, educational institutions, and dental product retailers also contribute to its earnings. Additionally, the company invests in research and development to continuously innovate and expand its product offerings, which supports sustainable revenue growth.

Shofu Inc. Financial Statement Overview

Summary

Shofu Inc. demonstrates strong financial health with excellent income statement metrics and a stable balance sheet, highlighted by strong profitability and low leverage. However, the cash flow situation requires closer monitoring due to missing recent data, introducing some uncertainty.

Income Statement

Shofu Inc. shows strong revenue growth, with a TTM revenue increase of 9.83% compared to the previous year. Gross profit margin for the TTM is solid at 59.60%, and the net profit margin is impressive at 11.40%. The EBIT margin is 14.52%, indicating efficient cost management. The EBITDA margin is also robust at 15.30%. Overall, the company demonstrates excellent profitability and growth.

Balance Sheet

The debt-to-equity ratio is very low at 0.005, reflecting minimal leverage. Return on equity (ROE) is strong at 10.40%, showing effective use of equity capital. The equity ratio is high at 85.19%, indicating financial stability and a strong asset base. The balance sheet reflects a well-capitalized company with strong equity positions.

Cash Flow

Cash flow metrics are challenging to assess due to missing data for the TTM period, which limits analysis. However, historical data shows periods of positive free cash flow. The operating cash flow to net income ratio for 2023 was 0.87, and the free cash flow to net income ratio was 0.42, indicating moderate cash conversion efficiency.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	38.70B	35.08B	31.68B	28.14B	24.68B
Gross Profit	22.99B	21.00B	18.70B	16.17B	13.60B
EBITDA	7.23B	6.47B	4.80B	4.12B	3.26B
Net Income	4.32B	3.65B	3.13B	2.55B	1.67B
Balance Sheet
Total Assets	49.99B	50.09B	43.73B	40.71B	37.81B
Cash, Cash Equivalents and Short-Term Investments	10.89B	9.72B	9.58B	9.06B	6.94B
Total Debt	0.00	281.00M	1.19B	1.48B	1.87B
Total Liabilities	7.26B	8.48B	8.21B	7.77B	7.62B
Stockholders Equity	42.66B	41.53B	35.44B	32.87B	30.14B
Cash Flow
Free Cash Flow	2.22B	1.38B	1.54B	2.67B	1.73B
Operating Cash Flow	3.45B	3.09B	3.17B	3.74B	2.83B
Investing Cash Flow	-914.00M	-1.29B	-1.29B	-1.29B	-4.08B
Financing Cash Flow	-1.78B	-2.10B	-1.46B	-1.07B	3.02B

Shofu Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1961.00
• 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 1961 is below the 20-day moving average (MA) of 2011.65, below the 50-day MA of 2022.72, and below the 200-day MA of 2078.51, indicating a bearish trend. The MACD of -6.09 indicates Positive momentum. The RSI at 45.66 is Neutral, neither overbought nor oversold. The STOCH value of 26.76 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
4901	78 Outperform	$4.28T	16.87	7.61%	1.69%	4.83%	1.58%
4543	77 Outperform	$4.06T	32.53	9.17%	0.95%	7.58%	6.74%
4182	69 Neutral	$478.78B	11.56	6.42%	3.85%	-6.27%	40.98%
Sector *	65 Neutral	¥341.84B	11.04	-0.17%	2.40%	9.73%	-9.93%
4544	65 Neutral	¥197.51B	141.53	0.95%	3.61%	2.15%	―
7731	63 Neutral	¥440.43B	36.58	1.99%	3.54%	-1.87%	-59.25%
7979	61 Neutral	¥69.97B	17.21		2.46%	6.82%	-1.08%

Shofu Inc. Corporate Events

Shofu Inc. Abolishes Takeover Response Policies to Enhance Corporate Value

Shofu Inc. announced the discontinuation of its Takeover Response Policies, effective after the 153rd Ordinary General Meeting of Shareholders in June 2025. This decision aligns with the company’s strategy to enhance corporate value and engage constructively with stakeholders, reflecting a shift in its approach to potential acquisition proposals while ensuring shareholder interests are protected.

Shofu Inc. Revises Internal Control Policy to Strengthen Compliance and Risk Management

Shofu Inc. announced a partial revision of its Basic Policy for Constructing an Internal Control System to enhance compliance and risk management. The revisions include strengthening internal audits, establishing a Corporate Governance Committee, and improving risk management processes to ensure effective and ethical business operations.

Shofu Inc. Reports Strong Financial Growth Amid Strategic Expansion

Shofu Inc. reported a significant increase in its consolidated financial results for the first nine months of the fiscal year ending March 31, 2025, with net sales rising by 13.5% and net income attributable to owners of the parent increasing by 26.8% compared to the previous year. This growth can be attributed to the company’s strategic expansion and operational efficiency, despite a decrease in comprehensive income. The company also implemented a two-for-one stock split, reflecting an optimistic outlook for future earnings and shareholder value.