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Shofu Inc.
(7979)
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Rating:77Outperform
Price Target:
¥2,663.00
▲(42.41% Upside)
Action:Reiterated
Date:06/11/26
The score is driven primarily by strong financial quality (improving profitability and a near debt-free balance sheet), tempered by uneven cash generation with negative free cash flow in the latest year. Technicals are trend-positive but overbought, while valuation is supportive with a reasonable P/E and a solid dividend yield.
Positive Factors
Steady Revenue and Profit Growth
Multi-year revenue expansion alongside stronger operating profit and net income indicates improved execution, operating efficiency and product mix. This supports a durable earnings base, although the latest growth rate has moderated.
Negative Factors
Moderating Latest Revenue Growth
The sharp slowdown in the latest top-line growth rate suggests that prior expansion may be becoming harder to sustain. Persistent moderation could limit operating leverage and place greater pressure on innovation, pricing and overseas execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue and Profit Growth
Multi-year revenue expansion alongside stronger operating profit and net income indicates improved execution, operating efficiency and product mix. This supports a durable earnings base, although the latest growth rate has moderated.
Read all positive factors
Shofu Inc. (7979) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥83.64B
Dividend Yield2.2%
Average Volume (3M)91.33K
Price to Earnings (P/E)13.3
Beta (1Y)0.46
Revenue Growth6.53%
EPS Growth52.32%
CountryJP
Employees1,462
SectorGeneral
Sector StrengthN/A
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)137.37
Shares Outstanding35,788,177
10 Day Avg. Volume72,670
30 Day Avg. Volume91,333
Financial Highlights & Ratios
PEG Ratio0.93
Price to Book (P/B)1.23
Price to Sales (P/S)1.49
P/FCF Ratio-961.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)146.83
Revenue Forecast (FY)¥42.91B
Shofu Inc. Business Overview & Revenue Model
Company Description
Headquartered in Kyoto, Japan, Shofu Inc. is a long-standing global supplier of diverse dental materials and specialized equipment, having been established in 1922. The company offers an extensive product range, encompassing everything from artifi...
How the Company Makes Money
Shofu primarily makes money by manufacturing and selling dental-related products to professional customers (dental clinics, dental laboratories, and dental distributors). Key revenue streams include: (1) Dental consumables and materials: recurring...
Shofu Inc. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
64
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 39.99B | 38.70B | 35.08B | 31.68B | 28.14B |
| Gross Profit | 23.74B | 22.99B | 21.00B | 18.70B | 16.17B |
| EBITDA | 6.44B | 7.23B | 6.47B | 5.40B | 4.52B |
| Net Income | 4.89B | 4.32B | 3.65B | 3.13B | 2.55B |
Balance Sheet | |||||
| Total Assets | 57.71B | 49.99B | 50.09B | 43.73B | 40.71B |
| Cash, Cash Equivalents and Short-Term Investments | 10.26B | 10.89B | 9.72B | 9.58B | 9.06B |
| Total Debt | 257.00M | 213.00M | 457.00M | 1.34B | 1.60B |
| Total Liabilities | 9.01B | 7.26B | 8.48B | 8.21B | 7.77B |
| Stockholders Equity | 48.60B | 42.66B | 41.53B | 35.44B | 32.88B |
Cash Flow | |||||
| Free Cash Flow | -62.00M | 2.22B | 1.38B | 1.54B | 2.67B |
| Operating Cash Flow | 3.37B | 3.45B | 3.09B | 3.17B | 3.74B |
| Investing Cash Flow | -2.07B | -914.00M | -1.29B | -1.29B | -1.29B |
| Financing Cash Flow | -1.97B | -1.78B | -2.10B | -1.46B | -1.07B |
Shofu Inc. Technical Analysis
Positive
1870.00
Price Trends
2153.66
Positive
1963.79
Positive
1877.04
Positive
Market Momentum
63.97
Positive
60.89
Neutral
42.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7979, the sentiment is Positive. The current price of 1870 is below the 20-day moving average (MA) of 2273.80, below the 50-day MA of 2153.66, and below the 200-day MA of 1877.04, indicating a bullish trend. The MACD of 63.97 indicates Positive momentum. The RSI at 60.89 is Neutral, neither overbought nor oversold. The STOCH value of 42.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7979.
Shofu Inc. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | ¥158.32B | 23.14 | ― | 2.73% | 9.94% | 10.50% | |
80 Outperform | ¥7.00B | 13.61 | ― | 2.95% | 9.74% | 17.84% | |
77 Outperform | ¥83.64B | 13.35 | ― | 2.83% | 6.53% | 52.32% | |
76 Outperform | ¥6.05B | 7.68 | ― | 1.93% | 13.27% | 18.32% | |
66 Neutral | ¥275.19B | 114.91 | 0.98% | 2.66% | 14.87% | -55.19% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ¥2.98B | 12.56 | ― | 2.21% | -1.52% | 27.39% |
* General Sector Average
JP:7979
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Shofu Inc. Corporate Events
Shofu Tightens Shareholder Perks, Adds Rice Vouchers for Long-Term Holders
Aug 5, 2026
Shofu Inc. has moved to tighten eligibility for its shareholder benefits plan, limiting preferential product pricing to investors holding at least one trading unit, or 100 shares, as of March 31 each year while slightly raising the discounted pric...
Shofu Raises Dividend Forecast After Higher Investment Gains
Aug 5, 2026
Shofu has revised its dividend forecast for the fiscal year ending March 31, 2027, following a larger-than-expected gain on the sale of investment securities. The board approved an increase in the interim special dividend from ¥6 to ¥12 ...
Shofu Inc. Delivers Double-Digit Sales Growth on Strong Overseas Dental Demand
Aug 5, 2026
Shofu Inc. reported robust consolidated results for the three months ended June 30, 2026, with net sales rising to ¥10,788 million, up 13.5% year on year, driven mainly by double‑digit growth in overseas dental materials, including chem...
Shofu’s Quarterly Profit Jumps as Dental Supplier Hikes Dividend Forecast
Aug 5, 2026
Shofu reported strong consolidated results for the three months ended June 30, 2026, with net sales rising 13.5% year on year to ¥10,788 million and profit attributable to owners of parent surging 151.3% to ¥2,146 million, driving basic ...
Shofu Books ¥1.96 Billion Extraordinary Gain from Strategic Shareholding Sales
Jul 16, 2026
Shofu Inc. has completed the sale of a portion of its listed investment securities as part of a broader effort to reduce strategic shareholdings, strengthen its financial position, and improve asset efficiency in line with Japan’s Corporate ...
Shofu Completes Treasury Stock Disposal for Restricted Stock Compensation
Jul 13, 2026
Shofu Inc. has completed the disposal of 26,367 shares of its treasury stock as restricted stock compensation, following a June 24, 2026 board resolution. The shares, priced at ¥1,999 each for a total value of ¥52,707,633, were allotted ...
Shofu Inc. to Absorb Implant Subsidiary to Boost Digital Dentistry
Jul 9, 2026
Shofu Inc. will conduct an absorption-type merger of its wholly owned subsidiary Shofu Biofix Inc., consolidating its implant-related business into the parent company. The move aims to optimize management resources and strengthen the group’s...
Shofu to Book ¥1.9 Billion Extraordinary Gain From Sale of Strategic Shareholdings
Jul 9, 2026
Shofu Inc., a dental materials and equipment maker listed on the TSE Prime Market, is streamlining its balance sheet by reducing strategic shareholdings in line with Japan’s Corporate Governance Code. The move is aimed at strengthening its f...
Shofu to Grant Treasury Shares as Long-Term Restricted Stock to Executives
Jun 24, 2026
Shofu Inc. has approved the disposal of 26,367 shares of its treasury stock to be granted as restricted stock compensation to five internal directors and nine executive officers, at a price of ¥1,999 per share for a total value of about ¥...
Shofu Clarifies Ties With Major Shareholder Mitsui Chemicals and Affirms Governance Independence
Jun 16, 2026
Shofu Inc. disclosed its relationship with Mitsui Chemicals Inc., which holds 20.13% of its voting rights and is classified as its largest shareholder and an other associated company. The companies, together with SUN MEDICAL CO., LTD., maintain a ...
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.