Shoei Co. Ltd. (7839) (7839) AI Stock Analysis

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Shoei Co. Ltd. (7839)

(TSE/TYO:7839)

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Rating:81Outperform

Price Target:JPY 2,570.00▲(15.51% Upside)

Action:reiterated

Date:08/07/26

Driven by strong financial performance with robust balance sheet and cash flow, supported by bullish technical momentum and fair valuation; revenue growth concerns slightly offset positives.

Positive Factors

Strong profitabilitySustained gross and net margins indicate that Shoei converts sales into profit consistently, while healthy EBIT and EBITDA margins point to efficient operations. This profitability provides internal resources to support product development, customer service, and resilience across the next several quarters.

Negative Factors

Recent revenue contractionThe latest-year revenue decline signals weaker top-line momentum despite Shoei’s sound margins and profitability. If this persists, slower volume or order growth could limit operating leverage, reduce the pace of earnings expansion, and make future growth more dependent on product mix or efficiency gains.

Shoei Co. Ltd. (7839) (7839) vs. iShares MSCI Japan ETF (EWJ)

Market Cap: JPY 114.95B
Dividend Yield: 2.70%
Average Volume (3M): 202.92K
Price to Earnings (P/E): 17.0
Beta (1Y): 0.68
Revenue Growth: 1.66%
EPS Growth: 9.39%
Country: Japan
Employees: 670
Sector: General
Sector Strength: 55
Industry: Apparel - Footwear & Accessories

Shoei Co. Ltd. (7839) Business Overview & Revenue Model

Company Description

Shoei Co., Ltd. manufactures and sells motorcycle helmets for general public and government agencies under the SHOEI brand worldwide. The company provides full-face, system, jet, off-road, bicycle, and trial helmets. It offers its products online. Th...

How the Company Makes Money

Shoei Co., Ltd. primarily makes money by supplying cosmetic packaging to cosmetics and beauty brands. Its core revenue stream is the sale of manufactured packaging products (e.g., compact cases and other cosmetic containers/components), where it earn...

Shoei Co. Ltd. (7839) Financial Statement Overview

Summary

Solid profitability with strong margins (Gross 45.0%, Net 20.6%), robust balance sheet featuring low Debt-to-Equity (0.017) and high ROE (25.0%), and strong cash flow growth (FCF 59.9%), tempered by revenue decline in 2025 forecast.

Income Statement

75Positive

Balance Sheet

85Very Positive

Cash Flow

80Positive

Financial statement breakdown
Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	32.36B	32.36B	35.79B	33.62B	28.95B	23.75B
Gross Profit	15.02B	14.78B	15.88B	15.10B	13.01B	9.94B
EBITDA	10.36B	10.36B	12.07B	11.31B	9.40B	7.12B
Net Income	6.32B	6.32B	7.38B	7.07B	6.02B	4.41B
Balance Sheet
Total Assets	38.15B	38.15B	35.38B	32.92B	29.43B	23.87B
Cash, Cash Equivalents and Short-Term Investments	19.94B	19.94B	15.35B	14.77B	13.89B	11.43B
Total Debt	467.19M	467.19M	512.92M	459.16M	416.40M	405.40M
Total Liabilities	5.92B	5.92B	5.84B	5.78B	6.53B	5.35B
Stockholders Equity	32.22B	32.22B	29.53B	27.13B	22.88B	18.51B
Cash Flow
Free Cash Flow	8.44B	8.44B	6.56B	4.12B	4.39B	4.05B
Operating Cash Flow	9.76B	9.76B	9.72B	6.35B	6.03B	5.22B
Investing Cash Flow	-1.39B	-1.39B	-3.28B	-2.35B	-1.85B	-1.35B
Financing Cash Flow	-3.77B	-3.77B	-5.65B	-3.46B	-2.27B	-2.11B

Shoei Co. Ltd. (7839) Technical Analysis

Technical Analysis SentimentPositive

Last Price2225.00

Price Trends

50DMA2129.18Positive

100DMA1981.78Positive

200DMA1829.42Positive

Market Momentum

MACD28.53Positive

RSI53.06Neutral

STOCH37.65Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7839, the sentiment is Positive. The current price of 2225.00 is below the 20-day moving average (MA) of 2253.75, above the 50-day MA of 2129.18, and above the 200-day MA of 1829.42, indicating a neutral trend. The MACD of 28.53 indicates Positive momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 37.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7839.

Shoei Co. Ltd. (7839) Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

JP:7839 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7839	81Outperform	JPY 116.32B	16.96	―	2.70%	1.66%	9.39%
JP:7951	80Outperform	JPY 542.56B	17.81	6.72%	2.13%	5.28%	442.85%
JP:7309	77Outperform	JPY 1.79T	31.16	6.71%	1.69%	5.00%	17.30%
JP:8135	73Outperform	JPY 8.10B	7.41	―	4.35%	6.27%	-62.11%
JP:7906	70Outperform	JPY 206.88B	15.07	17.01%	1.13%	15.09%	12.17%
JP:7990	65Neutral	JPY 53.31B	11.24	―	3.77%	3.84%	4.87%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

JP:7839 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7839	Shoei Co. Ltd. (7839)	2225.00	591.82	36.24%
JP:7309	Shimano	20755.00	5216.96	33.58%
JP:7951	Yamaha Corporation	1221.50	210.91	20.87%
JP:7906	Yonex Co	2383.00	-1725.55	-42.00%
JP:7990	GLOBERIDE, Inc.	2519.00	283.68	12.69%
JP:8135	ZETT CORP.	414.00	-25.31	-5.76%

Shoei Co. Ltd. (7839) Corporate Events

Shoei Adjusts Employee Restricted Stock Allocation After Forfeitures

Sep 25, 2026

Shoei Co., Ltd. has completed the payment procedures for the disposal of treasury shares used as restricted stock compensation for its employees, following a July 31, 2026 board resolution. As a result of changes in eligibility, the number of common...

Shoei Revamps Board With New Independent Director and Auditor

Sep 25, 2026

Shoei Co., Ltd. has announced changes to its leadership structure, reflecting ongoing efforts to strengthen governance with experienced external professionals. The company continues to rely on outside experts to support oversight and compliance as it...

Shoei Reshapes Top Management with New Director and Executive Promotions

Aug 28, 2026

Shoei Co., Ltd. has announced upcoming changes to its corporate officer lineup, including the appointment of Yukihiko Kaburaki as a new director candidate, effective after shareholder approval at the 70th Annual General Meeting on December 23, 2026....

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: Aug 04, 2026

Shoei Co. Ltd. (7839) AI Stock Analysis