SHOEI CORPORATION (9385) AI Stock Analysis

• Market Cap: ¥6.48B
• Dividend Yield: 3.28%
• Average Volume (3M): 8.16K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.38
• Revenue Growth: -3.02%
• EPS Growth: N/A
• Country: JP
• Employees: 555
• Sector: Communication Services
• Sector Strength: 97
• Industry: Packaging & Containers
• EPS (TTM): 39.99
• Shares Outstanding: 7,850,000
• 10 Day Avg. Volume: 7,160
• 30 Day Avg. Volume: 8,156
• PEG Ratio: -0.17
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -277.99
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ¥855.00 ▲(47.41% Upside)
• Action: Downgraded Date: 02/13/26
• Date: Action: Downgraded 02/13/26

The score is driven by mixed financial performance (notably cash flow volatility and uneven revenue/margins) offset by attractive valuation (low P/E and moderate yield). Technicals show a strong trend but are extremely overbought, which tempers the overall rating.

Positive Factors

Balance sheet improvement

Reported improvement in leverage and a reasonable equity ratio point to a more resilient capital structure. That durability supports access to credit and flexibility for near-term capex or working capital needs, reducing refinancing risk over the next several months.

Operating cash flow generation

Despite free cash flow volatility, consistently positive operating cash flow relative to net income indicates the core business converts earnings into cash. That persistent cash generation supports operations and reinvestment capacity even when FCF swings due to timing or capex.

Low market volatility (Beta)

A low beta implies the company's earnings and equity are less sensitive to market swings, reflecting stable demand or contract-based revenues common in logistics/packaging. This structural steadiness aids forecasting, capital allocation, and lowers financing costs over months.

Negative Factors

Revenue decline

A roughly 31% revenue decline signals material demand loss or contract attrition, reducing scale and hurting operating leverage. Persistent top-line weakness undermines margin recovery and constrains reinvestment, making operational improvement harder over a multi-month horizon.

Pressure on profitability margins

Sustained pressure on EBIT/EBITDA and volatile net margins indicate weakened pricing power or cost inefficiencies. Margin compression reduces cash available for debt service and capex, and if structural, will impair returns and strategic flexibility over the medium term.

Volatile / negative free cash flow

High capex driving negative or inconsistent free cash flow creates funding pressure and may force external financing or cutbacks. If FCF volatility persists, it limits dividends, debt reduction, and strategic investments, raising balance-sheet and execution risk over coming months.

SHOEI CORPORATION Business Overview & Revenue Model

Company Description

SHOEI CORPORATION (9385) is a leading Japanese manufacturer specializing in high-quality motorcycle helmets and accessories. Established in 1959, the company operates primarily in the automotive and sporting goods sectors, focusing on creating innovative and safety-compliant products for motorcycle enthusiasts and professional riders. SHOEI's core offerings include a range of full-face, modular, and open-face helmets, along with a variety of protective gear and accessories designed to enhance rider safety and comfort.

How the Company Makes Money

SHOEI CORPORATION generates revenue primarily through the sale of its motorcycle helmets and related accessories. The company employs a direct sales model, distributing products through a network of dealers and retailers, as well as through its own e-commerce platform. Key revenue streams include sales of premium helmets, which command higher price points due to their advanced technology and safety features, as well as accessories that complement the helmets. SHOEI also benefits from partnerships with motorcycle manufacturers and sponsorships within the racing community, which enhance brand visibility and drive sales. Additionally, the company's commitment to innovation and quality helps maintain customer loyalty and repeat purchases, further contributing to its earnings.

SHOEI CORPORATION Financial Statement Overview

Summary

Mixed fundamentals: balance sheet is moderately solid (improving leverage, reasonable equity ratio), but income statement shows inconsistent revenue and pressured EBIT/EBITDA margins, and cash flow is weaker with volatile/negative recent free cash flow due to high capex.

Income Statement

SHOEI CORPORATION shows moderate stability in its income statement. The gross profit margin is relatively consistent, but net profit margins exhibit volatility due to fluctuating net income. Revenue growth has been inconsistent, with recent declines indicating potential revenue challenges. The EBIT and EBITDA margins are under pressure, reflecting operational efficiency issues.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio indicates a considerable level of leverage, although it has improved over time. Return on Equity is variable, pointing to inconsistent profitability. The equity ratio is reasonable, suggesting a balanced asset financing structure.

Cash Flow

Cash flow analysis indicates challenges in maintaining positive free cash flow, as seen in recent negative figures. The operating cash flow to net income ratio is generally positive, but the free cash flow to net income ratio demonstrates volatility. Investment in capital expenditures is high, impacting free cash flow stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	18.93B	19.03B	19.45B	20.75B	19.27B	20.51B
Gross Profit	4.22B	4.16B	4.08B	3.69B	3.87B	4.46B
EBITDA	1.08B	966.23M	1.66B	-1.57B	554.90M	1.29B
Net Income	503.39M	467.35M	1.01B	-1.62B	89.31M	675.19M
Balance Sheet
Total Assets	10.64B	10.43B	9.62B	11.03B	12.79B	10.29B
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.11B	854.67M	1.27B	878.99M	943.54M
Total Debt	3.94B	3.95B	3.43B	5.50B	5.50B	3.15B
Total Liabilities	6.40B	6.16B	5.82B	8.23B	8.27B	5.55B
Stockholders Equity	4.24B	4.28B	3.80B	2.80B	4.52B	4.73B
Cash Flow
Free Cash Flow	0.00	-15.34M	1.21B	582.34M	179.79M	-702.24M
Operating Cash Flow	0.00	926.82M	1.42B	716.25M	341.04M	-602.22M
Investing Cash Flow	0.00	-987.77M	507.69M	-116.32M	-1.77B	-145.62M
Financing Cash Flow	0.00	275.74M	-2.35B	-217.12M	1.36B	822.86M

SHOEI CORPORATION Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 580.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:9385, the sentiment is Positive. The current price of 580 is below the 20-day moving average (MA) of 773.20, below the 50-day MA of 693.82, and below the 200-day MA of 598.94, indicating a bullish trend. The MACD of 46.78 indicates Negative momentum. The RSI at 84.73 is Negative, neither overbought nor oversold. The STOCH value of 72.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:9385.

SHOEI CORPORATION Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7923	80 Outperform	¥5.92B	8.89	―	1.72%	5.37%	20.22%
3954	76 Outperform	¥13.99B	11.03	―	1.20%	6.42%	-6.32%
4690	70 Outperform	¥4.01B	15.42	―	2.38%	-5.18%	0.36%
3944	68 Neutral	¥3.02B	9.48	―	2.09%	2.37%	98.09%
9385	67 Neutral	¥6.48B	8.22	―	3.28%	-3.02%	―
3953	63 Neutral	¥2.93B	-44.35	―	6.31%	2.07%	-145.09%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%