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Shigematsu Works Co., Ltd. (JP:7980)
:7980
Japanese Market
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Shigematsu Works Co., Ltd. (7980) AI Stock Analysis

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JP:7980

Shigematsu Works Co., Ltd.

(7980)

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Outperform 70 (OpenAI - 5.2)
Rating:70Outperform
Price Target:
¥941.00
▲(20.18% Upside)
Action:Upgraded
Date:08/11/26
The score is driven primarily by solid financial momentum and a strengthened balance sheet, but held back by weak cash conversion (negative free cash flow in 2025–2026). Technicals are supportive with positive trend/momentum, and valuation is a key positive given the low P/E and moderate dividend yield.
Positive Factors
Revenue re-acceleration
Sustained double-digit top-line growth in 2026 signals improving market demand and product traction. Over a 2–6 month horizon this supports scale economics, stronger order visibility and reinvestment capacity into R&D or sales, anchoring durable revenue momentum.
Negative Factors
Negative free cash flow
Persistent negative free cash flow despite positive operating income indicates weak cash conversion, likely from capex or working-capital needs. Over months this pressures liquidity, may necessitate external funding, and constrains shareholder returns or strategic investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue re-acceleration
Sustained double-digit top-line growth in 2026 signals improving market demand and product traction. Over a 2–6 month horizon this supports scale economics, stronger order visibility and reinvestment capacity into R&D or sales, anchoring durable revenue momentum.
Read all positive factors

Shigematsu Works Co., Ltd. (7980) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Established in 1917 and headquartered in Tokyo, Japan, Shigematsu Works Co., Ltd. is a prominent Japanese manufacturer and distributor of safety and protective gear. The company's extensive product portfolio features various personal protective eq...
How the Company Makes Money
Shigematsu Works makes money primarily by manufacturing and selling respiratory protection products and the consumables that support their ongoing use. Its core revenue stream comes from sales of respirators (e.g., masks and breathing apparatus) t...

Shigematsu Works Co., Ltd. Financial Statement Overview

Summary
Strong re-acceleration in revenue growth (~10.7% in 2026) and a meaningfully improved leverage profile (debt-to-equity ~0.30). Offsetting this, profitability is steady but pressured (gross margin down to ~29.6%; net margin ~4.5%), and free cash flow is negative in both 2025–2026, indicating weak cash conversion despite positive earnings.
Income Statement
71
Positive
Balance Sheet
74
Positive
Cash Flow
41
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue15.95B15.59B14.11B13.00B12.88B11.92B
Gross Profit4.79B4.61B4.30B3.93B4.01B3.63B
EBITDA2.11B1.97B1.73B1.31B1.69B1.25B
Net Income787.88M702.20M780.58M584.08M748.24M589.11M
Balance Sheet
Total Assets21.49B21.59B18.17B16.22B15.32B14.32B
Cash, Cash Equivalents and Short-Term Investments1.76B2.45B1.48B1.63B1.63B1.35B
Total Debt7.05B7.63B5.04B3.12B3.13B3.36B
Total Liabilities11.73B12.15B9.61B7.94B7.97B7.83B
Stockholders Equity9.76B9.44B8.57B8.28B7.35B6.50B
Cash Flow
Free Cash Flow0.00-1.49B-1.65B399.81M667.73M26.94M
Operating Cash Flow0.001.21B228.18M966.39M1.12B490.66M
Investing Cash Flow0.00-2.73B-2.21B-838.81M-643.92M-496.46M
Financing Cash Flow0.002.49B1.83B-125.72M-299.93M-173.66M

Shigematsu Works Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price783.00
Price Trends
50DMA
823.44
Positive
100DMA
850.21
Positive
200DMA
844.03
Positive
Market Momentum
MACD
6.62
Positive
RSI
54.47
Neutral
STOCH
38.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7980, the sentiment is Positive. The current price of 783 is below the 20-day moving average (MA) of 849.40, below the 50-day MA of 823.44, and below the 200-day MA of 844.03, indicating a bullish trend. The MACD of 6.62 indicates Positive momentum. The RSI at 54.47 is Neutral, neither overbought nor oversold. The STOCH value of 38.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7980.

Shigematsu Works Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
¥1.04T32.1819.68%1.36%21.16%157.04%
70
Outperform
¥6.05B7.681.93%13.27%18.32%
70
Outperform
¥158.32B23.142.73%9.94%10.50%
66
Neutral
¥275.19B114.910.98%2.66%14.87%-55.19%
52
Neutral
¥11.29B-15.983.85%-5.34%-152.53%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
48
Neutral
¥256.47B17.815.37%2.03%2.68%144.20%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7980
Shigematsu Works Co., Ltd.
851.00
49.61
6.19%
JP:7747
Asahi Intecc Co
3,862.00
1,376.15
55.36%
JP:7716
Nakanishi
3,165.00
1,113.82
54.30%
JP:8086
Nipro
1,532.00
58.63
3.98%
JP:7702
JMS Co., Ltd.
458.00
25.79
5.97%
JP:7730
Mani, Inc.
1,614.00
372.84
30.04%
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 11, 2026