Shigematsu Works Co., Ltd. (7980) AI Stock Analysis

• Market Cap: ¥5.80B
• Dividend Yield: 1.84%
• Average Volume (3M): 12.87K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.28
• Revenue Growth: 5.45%
• EPS Growth: 0.23%
• Country: JP
• Employees: 386
• Sector: Healthcare
• Sector Strength: 49
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.94
• Shares Outstanding: 7,200,000
• 10 Day Avg. Volume: 9,070
• 30 Day Avg. Volume: 12,866
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥900.00
• Price Target Upside: 10.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: ¥900.00 ▲(10.70% Upside)

The overall stock score reflects strong financial performance and attractive valuation, offset by bearish technical indicators. The company's robust revenue growth and profitability are significant strengths, but recent debt increases and negative cash flow present risks. The stock's undervaluation and dividend yield offer potential upside.

Shigematsu Works Co., Ltd. Business Overview & Revenue Model

Company Description

Shigematsu Works Co., Ltd. is a Japanese company primarily engaged in the manufacturing and distribution of safety equipment. The company specializes in respiratory protection products, providing a range of safety masks and related accessories designed to protect users from airborne hazards. With a focus on high-quality and reliable products, Shigematsu Works caters to various industries where occupational safety is a priority.

How the Company Makes Money

Shigematsu Works Co., Ltd. generates revenue through the sale of its safety equipment products, particularly its respiratory protection gear. The company's key revenue streams include direct sales to industrial clients, distribution partnerships with safety equipment suppliers, and contracts with governmental and health organizations that prioritize workplace safety. Additionally, Shigematsu Works may engage in research and development activities to innovate and enhance its product offerings, thereby maintaining a competitive edge in the safety equipment market.

Shigematsu Works Co., Ltd. Financial Statement Overview

Summary

Shigematsu Works Co., Ltd. demonstrates strong revenue growth and profitability with solid margins, supported by a stable balance sheet. However, the recent increase in debt and negative free cash flow due to capital investments pose potential risks.

Income Statement

Shigematsu Works Co., Ltd. has shown a strong revenue growth rate of 8.6% in the most recent year, with consistent improvements in gross and net profit margins. The gross profit margin stands at 31.4%, while the net profit margin is 5.5%, indicating efficient cost management and profitability. The EBITDA margin of 12.6% reflects a healthy operating performance. However, EBIT margin at 7.6% suggests room for operational cost optimization.

Balance Sheet

The company's balance sheet displays a solid equity base with a debt-to-equity ratio of 0.59, reflecting moderate leverage. The return on equity is 9.1%, indicating good profitability relative to shareholder investment. The equity ratio of 47.5% suggests a stable financial structure, though an increase in total debt from the previous year could be a potential risk factor if not managed properly.

Cash Flow

The cash flow analysis reveals a challenging year with a negative free cash flow of -1.65 billion yen, largely due to high capital expenditures. The operating cash flow to net income ratio of 0.29 indicates weaker cash generation from operations. The free cash flow to net income ratio is negative, highlighting the impact of capital investments on cash reserves, necessitating careful management of cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.11B	14.11B	13.00B	12.88B	11.92B	12.70B
Gross Profit	4.43B	4.43B	4.00B	4.09B	3.70B	4.09B
EBITDA	1.77B	1.77B	1.39B	1.77B	1.47B	1.40B
Net Income	780.47M	780.58M	584.08M	748.24M	589.11M	651.05M
Balance Sheet
Total Assets	18.05B	18.05B	16.10B	15.20B	14.32B	13.98B
Cash, Cash Equivalents and Short-Term Investments	1.48B	1.48B	1.63B	1.63B	1.35B	1.53B
Total Debt	5.04B	5.04B	3.12B	3.13B	3.36B	3.45B
Total Liabilities	9.48B	9.48B	7.81B	7.85B	7.83B	8.37B
Stockholders Equity	8.57B	8.57B	8.28B	7.35B	6.50B	5.62B
Cash Flow
Free Cash Flow	0.00	-1.65B	126.19M	573.95M	-7.55M	-349.35M
Operating Cash Flow	0.00	228.18M	966.39M	1.12B	490.66M	762.84M
Investing Cash Flow	0.00	-2.21B	-838.81M	-643.92M	-496.46M	-1.13B
Financing Cash Flow	0.00	1.83B	-125.72M	-299.93M	-173.66M	399.23M

Shigematsu Works Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 813.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7980, the sentiment is Positive. The current price of 813 is above the 20-day moving average (MA) of 809.45, below the 50-day MA of 818.82, and above the 200-day MA of 793.98, indicating a neutral trend. The MACD of -1.64 indicates Negative momentum. The RSI at 50.86 is Neutral, neither overbought nor oversold. The STOCH value of 68.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7980.

Shigematsu Works Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4556	84 Outperform	¥5.23B	8.46		2.50%	5.38%	-7.04%
7730	75 Outperform	¥125.37B	22.83		3.08%	5.82%	-20.09%
7980	73 Outperform	¥5.80B	8.71		1.84%	5.45%	0.23%
7813	70 Neutral	¥2.78B	14.38		2.28%	31.86%	195.03%
7743	67 Neutral	¥16.71B	14.99		2.72%	2.38%	-48.68%
7702	60 Neutral	¥10.99B	124.68		3.83%	3.36%	-310.49%
Sector *	51 Neutral	$7.91B	-0.36	-41.71%	2.23%	23.45%	-1.86%