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

Shigematsu Works Co., Ltd.

(TSE/TYO:7980)

Select Model

Rating:71Outperform

Price Target:JPY 945.00▲(11.18% Upside)

Action:reiterated

Date:08/11/26

The stock scores 71, reflecting a solid financial foundation with strong revenue growth and a robust balance sheet, offset by modest profitability and negative free cash flow due to investments. Technical indicators show bullish momentum but are overbought, suggesting potential near-term consolidation. Valuation appears attractive with a low P/E ratio, providing upside potential. Overall, the company is well-positioned for long-term growth, though short-term technicals warrant caution.

Positive Factors

Revenue re-accelerationSustained 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 flowPersistent 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.

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

Market Cap: JPY 6.01B
Dividend Yield: 1.78%
Average Volume (3M): 25.62K
Price to Earnings (P/E): 7.6
Beta (1Y): -0.01
Revenue Growth: 13.27%
EPS Growth: 18.32%
Country: Japan
Employees: 399
Sector: Healthcare
Sector Strength: 51
Industry: Medical - Instruments & Supplies

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 equip...

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) to c...

Shigematsu Works Co., Ltd. Financial Statement Overview

Summary

Revenue growth of 10.7% demonstrates solid top-line momentum. Balance sheet is strong with low leverage (D/E 0.30) and ample equity. However, free cash flow is negative due to heavy capital expenditures, and net profit margin remains modest at 4.5%. Overall financial health is stable.

Income Statement

68Positive

Balance Sheet

82Very Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	15.95B	15.59B	14.11B	13.00B	12.88B	11.92B
Gross Profit	4.79B	4.61B	4.30B	3.93B	4.01B	3.63B
EBITDA	2.11B	1.97B	1.73B	1.31B	1.69B	1.25B
Net Income	787.88M	702.20M	780.58M	584.08M	748.24M	589.11M
Balance Sheet
Total Assets	21.49B	21.59B	18.17B	16.22B	15.32B	14.32B
Cash, Cash Equivalents and Short-Term Investments	1.76B	2.45B	1.48B	1.63B	1.63B	1.35B
Total Debt	7.05B	7.63B	5.04B	3.12B	3.13B	3.36B
Total Liabilities	11.73B	12.15B	9.61B	7.94B	7.97B	7.83B
Stockholders Equity	9.76B	9.44B	8.57B	8.28B	7.35B	6.50B
Cash Flow
Free Cash Flow	0	-1.49B	-1.65B	399.81M	667.73M	26.94M
Operating Cash Flow	0	1.21B	228.18M	966.39M	1.12B	490.66M
Investing Cash Flow	0	-2.73B	-2.21B	-838.81M	-643.92M	-496.46M
Financing Cash Flow	0	2.49B	1.83B	-125.72M	-299.93M	-173.66M

Shigematsu Works Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price850.00

Price Trends

50DMA856.40Negative

100DMA836.03Positive

200DMA862.01Negative

Market Momentum

MACD-5.65Positive

RSI46.23Neutral

STOCH30.85Neutral

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 850.00 is below the 20-day moving average (MA) of 862.50, below the 50-day MA of 856.40, and below the 200-day MA of 862.01, indicating a bearish trend. The MACD of -5.65 indicates Positive momentum. The RSI at 46.23 is Neutral, neither overbought nor oversold. The STOCH value of 30.85 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

JP:7980 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JP:7747	82Outperform	JPY 973.21B	30.42	19.88%	1.32%	21.16%	156.97%
JP:7730	79Outperform	JPY 149.06B	20.59	―	2.71%	10.18%	55.86%
JP:7980	71Outperform	JPY 6.01B	7.63	―	1.78%	13.27%	18.32%
JP:7716	60Neutral	JPY 250.99B	102.86	1.89%	2.04%	14.87%	-55.19%
JP:7702	56Neutral	JPY 10.63B	-15.18	―	3.91%	-5.34%	-152.53%
JP:8086	53Neutral	JPY 240.39B	15.81	5.35%	2.27%	2.68%	144.20%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* Healthcare Sector Average

Performance Comparison

JP:7980 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
JP:7980	Shigematsu Works Co., Ltd.	845.00	57.40	7.29%
JP:7747	Asahi Intecc Co	3668.00	1252.69	51.86%
JP:7716	Nakanishi	1421.00	424.20	42.56%
JP:8086	Nipro Corporation	1363.00	-110.97	-7.53%
JP:7702	JMS Co., Ltd.	435.00	20.99	5.07%
JP:7730	Mani, Inc.	1513.00	74.81	5.20%

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

Shigematsu Works Co., Ltd. AI Stock Analysis