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Shofu Inc. (7979) AI Stock Analysis

JP:7979

Shofu Inc.

(TSE/TYO:7979)

Select Model
Rating:78Outperform
Price Target:JPY 2,482.00â–²(7.91% Upside)
Action:reiterated
Date:09/11/26

Shofu Inc. achieves a strong overall score, primarily driven by its flawless, zero-leverage balance sheet, consistent net income expansion, and highly appealing valuation. While short-term technical indicators show recent downward pressure, the heavily oversold conditions and sustained long-term uptrend limit the risk. The primary fundamental headwind is a recent dip in free cash flow due to reinvestment, but the company's robust operating margins easily absorb these capital outlays.

Positive Factors
Recurring consumables demandConsumables used in everyday dental treatment and laboratory work can create repeat purchasing across professional customers. This recurring element, combined with equipment and instrument sales, gives Shofu exposure to ongoing workflows rather than relying only on infrequent capital purchases.
Negative Factors
Inconsistent cash conversionNegative free cash flow in the latest year weakens the reliability of reported profit as internally generated funding. Although operating cash flow remains positive, uneven conversion and periods when cash generation trails net income could constrain discretionary investment or shareholder returns.

Shofu Inc. (7979) vs. iShares MSCI Japan ETF (EWJ)

-20%-10%0%10%20%30%40%JP:7979+28.04%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 81.86B
Dividend Yield
2.65%
Average Volume (3M)
84.32K
Price to Earnings (P/E)
13.2
Beta (1Y)
0.48
Revenue Growth
6.53%
EPS Growth
52.32%
Country
Japan
Employees
1,462
Sector
General
Sector Strength
55
Industry
Medical - Instruments & Supplies

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 artificia...

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 sa...

Shofu Inc. Financial Statement Overview

Summary

The company boasts a pristine, debt-free balance sheet and strong profitability with consistent revenue growth. While operating cash flow is stable, recent heavy capital expenditures have temporarily pushed free cash flow into negative territory, slightly tempering its otherwise phenomenal financial health.

Income Statement

88Very Positive

Balance Sheet

96Very Positive

Cash Flow

68Positive
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue39.99B39.99B38.70B35.08B31.68B28.14B
Gross Profit23.74B23.74B22.99B21.00B18.70B16.17B
EBITDA7.58B6.44B7.23B6.47B5.40B4.52B
Net Income4.89B4.89B4.32B3.65B3.13B2.55B
Balance Sheet
Total Assets57.71B57.71B49.99B50.09B43.73B40.71B
Cash, Cash Equivalents and Short-Term Investments10.26B10.26B10.89B9.72B9.58B9.06B
Total Debt257.00M257.00M213.00M457.00M1.34B1.60B
Total Liabilities9.01B9.01B7.26B8.48B8.21B7.77B
Stockholders Equity48.60B48.60B42.66B41.53B35.44B32.88B
Cash Flow
Free Cash Flow0-62.00M2.22B1.38B1.54B2.67B
Operating Cash Flow03.37B3.45B3.09B3.17B3.74B
Investing Cash Flow0-2.07B-914.00M-1.29B-1.29B-1.29B
Financing Cash Flow0-1.97B-1.78B-2.10B-1.46B-1.07B

Shofu Inc. Technical Analysis

Technical Analysis SentimentPositive
Last Price2300.00

Price Trends

50DMA2244.68Positive
100DMA2157.09Positive
200DMA1942.19Positive

Market Momentum

MACD4.45Negative
RSI60.60Neutral
STOCH58.19Neutral

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 2300.00 is above the 20-day moving average (MA) of 2245.60, above the 50-day MA of 2244.68, and above the 200-day MA of 1942.19, indicating a bullish trend. The MACD of 4.45 indicates Negative momentum. The RSI at 60.60 is Neutral, neither overbought nor oversold. The STOCH value of 58.19 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

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7979 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:9340JP:934083OutperformJPY 7.76B14.88―3.30%9.74%17.84%
JP:7730JP:773079OutperformJPY 149.06B20.59―2.71%10.18%55.86%
JP:7979JP:797978OutperformJPY 82.07B13.25―2.65%6.53%52.32%
JP:7980JP:798076OutperformJPY 6.01B7.63―1.78%13.27%18.32%
JP:7716JP:771660NeutralJPY 250.99B102.861.89%2.04%14.87%-55.19%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7813JP:781344NeutralJPY 2.92B11.89―2.90%-1.52%27.39%

* General Sector Average

Performance Comparison

0%20%40%60%JP:7979JP:7716JP:7730JP:7813JP:7980JP:9340Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7979 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7979Shofu Inc.2300.00478.6426.28%
JP:7716Nakanishi 1421.00424.2042.56%
JP:7730Mani, Inc.1513.0074.815.20%
JP:7813PLATZ Co., Ltd.828.00-6.35-0.76%
JP:7980Shigematsu Works Co., Ltd.845.0057.407.29%
JP:9340ASO INTERNATIONAL INC.787.00140.7921.79%

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 price o...

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 per...

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 chemica...

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 ear...

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 Gov...

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 on...

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 ca...

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 fina...

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 ¥52...

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 cap...

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: Sep 11, 2026