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

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Shigematsu Works Co., Ltd.

(TSE/TYO:7980)

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Rating:64Neutral

Price Target:JPY 866.00▲(7.05% Upside)

Action:downgraded

Date:11/12/26

The score is driven primarily by solid fundamentals but notably weak free cash flow, which tempers the otherwise improving balance sheet and revenue momentum. Technicals are currently bearish (below key moving averages with negative MACD), while the very low P/E and a modest dividend yield materially lift the overall rating.

Positive Factors

Recurring consumables revenueThe installed base of respirators can generate repeat demand because filters, cartridges and related parts require periodic replacement. This consumables component supports revenue visibility beyond initial equipment sales and can deepen customer relationships as workplace protection systems remain in use.

Negative Factors

Negative free cash flowPersistent negative free cash flow means reported earnings are not currently translating into surplus cash. This can constrain internally funded growth, increase reliance on working-capital or external financing, and reduce the company’s flexibility to absorb setbacks or return capital.

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

Market Cap: JPY 5.74B
Dividend Yield: 1.85%
Average Volume (3M): 28.82K
Price to Earnings (P/E): 4.1
Beta (1Y): 0.09
Revenue Growth: 12.91%
EPS Growth: 149.00%
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

Income statement and balance sheet are solid (re-accelerating revenue growth and improved leverage), but cash flow is a major drag: free cash flow is negative in both 2025 and 2026 and does not cover earnings, signaling weak cash conversion despite profitability.

Income Statement

71Positive

Balance Sheet

74Positive

Cash Flow

41Neutral

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 Price809.00

Price Trends

50DMA851.74Negative

100DMA836.89Negative

200DMA863.12Negative

Market Momentum

MACD-15.48Positive

RSI41.89Neutral

STOCH38.64Neutral

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 809.00 is below the 20-day moving average (MA) of 840.60, below the 50-day MA of 851.74, and below the 200-day MA of 863.12, indicating a bearish trend. The MACD of -15.48 indicates Positive momentum. The RSI at 41.89 is Neutral, neither overbought nor oversold. The STOCH value of 38.64 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:7730	79Outperform	JPY 146.30B	20.33	―	2.75%	10.18%	55.86%
JP:7747	72Outperform	JPY 1.02T	31.57	19.88%	1.25%	21.16%	156.97%
JP:7980	64Neutral	JPY 5.78B	4.07	―	1.85%	12.91%	149.00%
JP:7716	60Neutral	JPY 248.88B	101.92	1.89%	2.06%	14.87%	-55.19%
JP:7702	56Neutral	JPY 10.55B	-14.93	―	3.96%	-3.10%	-645.01%
Sector *	51Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
JP:8086	48Neutral	JPY 246.65B	20.41	3.85%	2.33%	5.03%	-0.86%

* 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.	809.00	39.12	5.08%
JP:7747	Asahi Intecc Co	3807.00	1457.82	62.06%
JP:7716	Nakanishi	1409.00	405.86	40.46%
JP:8086	Nipro Corporation	1331.00	-121.91	-8.39%
JP:7702	JMS Co., Ltd.	429.00	4.40	1.04%
JP:7730	Mani, Inc.	1489.00	64.46	4.52%

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: Nov 12, 2026

Shigematsu Works Co., Ltd. AI Stock Analysis