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

• Market Cap: ¥5.90B
• Dividend Yield: 1.81%
• Average Volume (3M): 7.97K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.31
• Revenue Growth: 8.60%
• EPS Growth: 33.64%
• Country: JP
• Employees: 386
• Sector: Healthcare
• Sector Strength: 59
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 67.99
• Shares Outstanding: 7,200,000
• 10 Day Avg. Volume: 12,680
• 30 Day Avg. Volume: 7,966
• PEG Ratio: 4.97
• Price to Book (P/B): 0.65
• 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: 76 Outperform
• Price Target: ¥901.00 ▲(8.69%Upside)

Shigematsu Works Co., Ltd. is rated highly due to strong financial performance, particularly in revenue growth and profitability. The stock's valuation is attractive with a low P/E ratio, though there are concerns about cash flow management. Technical analysis suggests neutral market momentum, with no major bullish or bearish signals.

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

Company Description

Shigematsu Works Co., Ltd. (7980) is a Japan-based company primarily engaged in the manufacturing and distribution of safety equipment and protective gear. The company specializes in products such as respirators, masks, and other personal protective equipment (PPE) designed to ensure safety in various industrial settings. As a leader in safety solutions, Shigematsu Works Co., Ltd. serves a broad range of industries, including construction, manufacturing, and healthcare, providing essential equipment to protect workers against hazardous environments.

How the Company Makes Money

Shigematsu Works Co., Ltd. generates revenue through the sale of its safety equipment and personal protective gear, catering to industries that require stringent safety protocols. The company's key revenue streams include the production and distribution of respirators and masks, which are essential for worker safety in environments with airborne contaminants. Additionally, Shigematsu Works may engage in partnerships with industrial and healthcare organizations to supply customized safety solutions, contributing to its earnings. The company also invests in research and development to enhance product offerings, maintaining its competitive edge and ensuring compliance with international safety standards, which further supports its revenue model.

Shigematsu Works Co., Ltd. Financial Statement Overview

Summary

Shigematsu Works Co., Ltd. showcases a strong financial position with consistent revenue growth and solid profitability margins. The balance sheet reflects stability, though leveraging could be managed more aggressively for enhanced returns. Cash flow management is an area that needs attention to ensure consistent positive free cash flow.

Income Statement

Shigematsu Works Co., Ltd. demonstrated strong TTM revenue growth with a 7.2% increase from the previous year. The gross profit margin for the TTM was robust at 31.1%, and the net profit margin improved to 4.9%. EBIT and EBITDA margins were solid, indicating operational efficiency. However, there is room to enhance net profitability further.

Balance Sheet

The company maintains a healthy equity ratio of 45.4% TTM, reflecting strong financial stability. The debt-to-equity ratio is moderate at 0.70, suggesting a balanced approach to leverage. Return on Equity (ROE) is at 8.0%, indicating decent shareholder returns, but there is potential for improvement.

Cash Flow

While operating cash flow and free cash flow data are unavailable for the TTM, historical data shows fluctuations in free cash flow, with significant improvements in 2023. The need for sustained positive cash flow generation remains crucial for long-term stability.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
13.93B	13.00B	12.88B	11.92B	12.70B	11.60B
	Gross Profit
4.33B	4.00B	4.09B	3.70B	4.09B	3.47B
	EBIT
993.78M	784.83M	965.06M	605.13M	823.08M	308.00M
	EBITDA
1.42B	1.39B	1.77B	1.47B	1.40B	802.00M
	Net Income Common Stockholders
687.72M	584.08M	748.24M	589.11M	651.05M	265.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.34B	1.63B	1.63B	1.35B	1.53B	1.50B
	Total Assets
18.83B	16.10B	15.20B	14.32B	13.98B	12.16B
	Total Debt
5.95B	3.12B	3.13B	3.36B	3.45B	2.97B
	Net Debt
4.61B	1.49B	1.50B	2.01B	1.92B	2.29B
	Total Liabilities
10.28B	7.81B	7.85B	7.83B	8.37B	7.29B
	Stockholders Equity
8.55B	8.28B	7.35B	6.50B	5.62B	4.86B
Cash Flow		Free Cash Flow
0.00	126.19M	573.95M	-7.55M	-349.35M	437.00M
	Operating Cash Flow
0.00	966.39M	1.12B	490.66M	762.84M	978.00M
	Investing Cash Flow
0.00	-838.81M	-643.92M	-496.46M	-1.13B	-599.00M
	Financing Cash Flow
0.00	-125.72M	-299.93M	-173.66M	399.23M	-236.00M

Shigematsu Works Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 829.00
• 50DMA: Positive
• 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 829 is above the 20-day moving average (MA) of 795.50, above the 50-day MA of 781.16, and above the 200-day MA of 789.70, indicating a bullish trend. The MACD of 7.35 indicates Negative momentum. The RSI at 68.11 is Neutral, neither overbought nor oversold. The STOCH value of 55.81 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	¥5.08B	8.12		2.58%	4.93%	-0.26%
7980	76 Outperform	¥5.90B	7.55		1.81%	8.60%	33.64%
7730	70 Outperform	¥119.31B	19.16		2.64%	11.54%	-8.30%
7743	64 Neutral	¥13.71B	12.36		3.31%	2.58%	-53.08%
7813	63 Neutral	¥2.58B	36.86		1.92%	21.42%	-74.71%
Sector *	54 Neutral	$5.38B	3.27	-45.10%	3.30%	16.81%	0.02%
7702	53 Neutral	¥10.38B	117.53		4.00%	6.83%	―