| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1902.97 | 4 |
| Intrinsic value (DCF) | 807.90 | -56 |
| Graham-Dodd Method | 1223.57 | -33 |
| Graham Formula | 2197.10 | 20 |
Shofu Inc. (7979.T) is a leading Japanese manufacturer of dental materials and equipment, with a rich history dating back to its founding in 1922. Headquartered in Kyoto, Japan, the company specializes in a comprehensive range of dental products, including artificial teeth, dental porcelains, abrasives, alloys, cements, orthodontic devices, and infection control solutions. Operating in the Medical Instruments & Supplies sector, Shofu serves a global market, leveraging its expertise in dental technology and materials science. The company’s diversified product portfolio caters to restorative, preventive, and orthodontic dental care, positioning it as a key player in the dental healthcare industry. With a market capitalization of approximately ¥76.7 billion, Shofu maintains a stable financial position, supported by consistent revenue growth and profitability. Its commitment to innovation and quality has solidified its reputation among dental professionals worldwide.
Shofu Inc. presents a stable investment opportunity within the niche dental supplies market, characterized by consistent profitability and a low beta (0.27), indicating lower volatility relative to the broader market. The company’s strong net income (¥3.66 billion) and healthy operating cash flow (¥3.09 billion) underscore its financial resilience. However, its modest revenue growth and limited global brand recognition compared to multinational peers may constrain upside potential. The dividend yield, supported by a ¥44 per share payout, adds appeal for income-focused investors. Risks include exposure to competitive pressures from larger dental equipment manufacturers and potential currency fluctuations affecting international sales. Overall, Shofu is a conservative pick in the healthcare sector, suited for investors seeking steady returns with lower risk.
Shofu Inc. competes in the highly specialized dental materials and equipment market, where it differentiates itself through a broad product portfolio and a strong presence in Japan. Its competitive advantage lies in its long-standing reputation for quality and reliability in restorative and preventive dental products. However, the company faces intense competition from global giants like Dentsply Sirona and 3M, which benefit from larger R&D budgets and extensive distribution networks. Shofu’s niche focus on certain dental materials (e.g., porcelains and alloys) allows it to maintain customer loyalty among dental professionals, but its limited scale in orthodontics and digital dentistry could hinder growth in high-demand segments. The company’s low debt (¥281 million) and strong cash position (¥9.72 billion) provide flexibility for strategic investments, but its regional dominance in Japan may limit international expansion opportunities compared to rivals with broader geographic reach.