tiprankstipranks
Trending News
More News >
Shigematsu Works Co., Ltd. (JP:7980)
:7980
Japanese Market
Advertisement

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

Compare
0 Followers

Top Page

JP:7980

Shigematsu Works Co., Ltd.

(7980)

Rating:76Outperform
Price Target:
¥901.00
▲(11.37%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. (7980) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionShigematsu 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 MoneyShigematsu 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. displays strong revenue growth and profitability, with solid gross and net profit margins. The balance sheet is stable with moderate leverage, but the negative free cash flow due to high capital expenditures poses a risk to financial health.
Income Statement
85
Very Positive
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
78
Positive
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
70
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue13.93B14.11B13.00B12.88B11.92B12.70B
Gross Profit4.33B4.43B4.00B4.09B3.70B4.09B
EBITDA1.42B1.77B1.39B1.77B1.47B1.40B
Net Income687.72M780.58M584.08M748.24M589.11M651.05M
Balance Sheet
Total Assets18.83B18.05B16.10B15.20B14.32B13.98B
Cash, Cash Equivalents and Short-Term Investments1.34B1.48B1.63B1.63B1.35B1.53B
Total Debt5.95B5.04B3.12B3.13B3.36B3.45B
Total Liabilities10.28B9.48B7.81B7.85B7.83B8.37B
Stockholders Equity8.55B8.57B8.28B7.35B6.50B5.62B
Cash Flow
Free Cash Flow0.00-1.65B126.19M573.95M-7.55M-349.35M
Operating Cash Flow0.00228.18M966.39M1.12B490.66M762.84M
Investing Cash Flow0.00-2.21B-838.81M-643.92M-496.46M-1.13B
Financing Cash Flow0.001.83B-125.72M-299.93M-173.66M399.23M

Shigematsu Works Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price809.00
Price Trends
50DMA
808.98
Negative
100DMA
797.30
Positive
200DMA
792.63
Positive
Market Momentum
MACD
2.29
Positive
RSI
42.78
Neutral
STOCH
7.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7980, the sentiment is Neutral. The current price of 809 is below the 20-day moving average (MA) of 826.75, above the 50-day MA of 808.98, and above the 200-day MA of 792.63, indicating a neutral trend. The MACD of 2.29 indicates Positive momentum. The RSI at 42.78 is Neutral, neither overbought nor oversold. The STOCH value of 7.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:7980.

Shigematsu Works Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
¥5.16B8.29
2.56%4.93%-0.26%
76
Outperform
¥5.75B7.36
1.85%8.60%33.64%
72
Outperform
¥127.83B23.42
3.08%5.82%-20.09%
72
Outperform
¥14.38B12.97
3.16%2.58%-53.08%
61
Neutral
¥10.65B120.55
3.90%6.83%
54
Neutral
¥2.44B34.71
2.60%21.42%-74.71%
52
Neutral
$7.60B0.11-62.95%2.07%16.16%0.31%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7980
Shigematsu Works Co., Ltd.
815.00
16.78
2.10%
JP:4556
Kainos Laboratories, Inc.
1,250.00
81.23
6.95%
JP:7702
JMS Co., Ltd.
435.00
-61.65
-12.41%
JP:7730
Mani, Inc.
1,265.50
-783.82
-38.25%
JP:7743
Seed Co., Ltd.
470.00
-71.18
-13.15%
JP:7813
PLATZ Co., Ltd.
693.00
-24.90
-3.47%
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.Date of analysis: Jun 11, 2025