Shigematsu Works Co., Ltd. (7980) AI Stock Analysis

• Market Cap: ¥5.46B
• Dividend Yield: 1.95%
• Average Volume (3M): 9.33K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.30
• Revenue Growth: 10.30%
• EPS Growth: 69.33%
• Country: JP
• Employees: 386
• Sector: Healthcare
• Sector Strength: 56
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 96.72
• Shares Outstanding: 7,200,000
• 10 Day Avg. Volume: 3,440
• 30 Day Avg. Volume: 9,326
• PEG Ratio: 0.11
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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

Shigematsu Works Co., Ltd. demonstrates strong financial performance with robust revenue growth and profitability margins. However, technical indicators suggest a bearish trend, which could weigh on near-term stock performance. The stock's undervaluation, evidenced by a low P/E ratio and reasonable dividend yield, provides some counterbalance, making it an attractive option for value investors.

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

Company Description

Shigematsu Works Co., Ltd. (7980) is a Japan-based company primarily engaged in the manufacturing and distribution of safety equipment and protective gear. The company specializes in products such as respirators, masks, and other personal protective equipment (PPE) designed to ensure safety in various industrial settings. As a leader in safety solutions, Shigematsu Works Co., Ltd. serves a broad range of industries, including construction, manufacturing, and healthcare, providing essential equipment to protect workers against hazardous environments.

How the Company Makes Money

Shigematsu Works Co., Ltd. generates revenue through the sale of its safety equipment and personal protective gear, catering to industries that require stringent safety protocols. The company's key revenue streams include the production and distribution of respirators and masks, which are essential for worker safety in environments with airborne contaminants. Additionally, Shigematsu Works may engage in partnerships with industrial and healthcare organizations to supply customized safety solutions, contributing to its earnings. The company also invests in research and development to enhance product offerings, maintaining its competitive edge and ensuring compliance with international safety standards, which further supports its revenue model.

Shigematsu Works Co., Ltd. Financial Statement Overview

Summary

Shigematsu Works Co., Ltd. showcases a strong financial position with consistent revenue growth and solid profitability margins. The balance sheet reflects stability, though leveraging could be managed more aggressively for enhanced returns. Cash flow management is an area that needs attention to ensure consistent positive free cash flow.

Income Statement

Shigematsu Works Co., Ltd. demonstrated strong TTM revenue growth with a 7.2% increase from the previous year. The gross profit margin for the TTM was robust at 31.1%, and the net profit margin improved to 4.9%. EBIT and EBITDA margins were solid, indicating operational efficiency. However, there is room to enhance net profitability further.

Balance Sheet

The company maintains a healthy equity ratio of 45.4% TTM, reflecting strong financial stability. The debt-to-equity ratio is moderate at 0.70, suggesting a balanced approach to leverage. Return on Equity (ROE) is at 8.0%, indicating decent shareholder returns, but there is potential for improvement.

Cash Flow

While operating cash flow and free cash flow data are unavailable for the TTM, historical data shows fluctuations in free cash flow, with significant improvements in 2023. The need for sustained positive cash flow generation remains crucial for long-term stability.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
13.00B	12.88B	11.92B	12.70B	11.60B
	Gross Profit
4.00B	4.09B	3.70B	4.09B	3.47B
	EBIT
784.83M	965.06M	605.13M	823.08M	308.00M
	EBITDA
1.39B	1.77B	1.47B	1.40B	802.00M
	Net Income Common Stockholders
584.08M	748.24M	589.11M	651.05M	265.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.63B	1.63B	1.35B	1.53B	1.50B
	Total Assets
16.10B	15.20B	14.32B	13.98B	12.16B
	Total Debt
3.12B	3.13B	3.36B	3.45B	2.97B
	Net Debt
1.49B	1.50B	2.01B	1.92B	2.29B
	Total Liabilities
7.81B	7.85B	7.83B	8.37B	7.29B
	Stockholders Equity
8.28B	7.35B	6.50B	5.62B	4.86B
Cash Flow		Free Cash Flow
126.19M	573.95M	-7.55M	-349.35M	437.00M
	Operating Cash Flow
966.39M	1.12B	490.66M	762.84M	978.00M
	Investing Cash Flow
-838.81M	-643.92M	-496.46M	-1.13B	-599.00M
	Financing Cash Flow
-125.72M	-299.93M	-173.66M	399.23M	-236.00M

Shigematsu Works Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 767.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7980, the sentiment is Negative. The current price of 767 is below the 20-day moving average (MA) of 769.60, below the 50-day MA of 786.02, and below the 200-day MA of 789.95, indicating a bearish trend. The MACD of -4.69 indicates Negative momentum. The RSI at 44.47 is Neutral, neither overbought nor oversold. The STOCH value of 17.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7980.

Shigematsu Works Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6841	75 Outperform	¥841.37B	16.99	10.76%	1.77%	4.49%	-33.80%
6954	73 Outperform	¥3.49T	23.65		2.54%	0.23%	12.16%
7980	71 Outperform	¥5.46B	7.94		1.95%	10.30%	69.33%
7735	71 Outperform	$940.63B	9.80	25.48%	2.77%	30.34%	55.11%
6965	68 Neutral	¥419.75B	20.56	6.33%	2.96%	-8.53%	-49.42%
6645	66 Neutral	¥853.65B	114.83	0.98%	2.29%	-6.57%	-76.15%
Sector *	52 Neutral	$5.35B	3.81	-42.57%	2.86%	17.10%	1.33%