Showa Sangyo Co., Ltd. (2004) AI Stock Analysis

• Market Cap: ¥96.54B
• Dividend Yield: 3.36%
• Average Volume (3M): 29.65K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.44
• Revenue Growth: -3.45%
• EPS Growth: -3.91%
• Country: JP
• Employees: 2,858
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Agricultural Farm Products
• EPS (TTM): 37.27
• Shares Outstanding: 32,995,420
• 10 Day Avg. Volume: 29,030
• 30 Day Avg. Volume: 29,646
• PEG Ratio: -1.35
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 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: ¥3,178.00
• Price Target Upside: 8.84% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ¥3,164.00 ▲(8.36%Upside)

The overall score of 68.5 reflects a stable financial performance with a strong equity base and consistent profitability. The low P/E ratio and high dividend yield enhance the valuation attractiveness, suggesting potential undervaluation. However, technical analysis indicates bearish momentum, which may temper short-term investor sentiment.

Showa Sangyo Co., Ltd. Business Overview & Revenue Model

Company Description

Showa Sangyo Co., Ltd., established in 1936 and headquartered in Tokyo, Japan, is a diversified food manufacturing company. The company operates in various sectors including flour milling, vegetable oil production, and processed food manufacturing. Showa Sangyo offers a wide range of products such as flour, premixes, edible oils, and food products like pasta, noodles, and frozen foods, catering to both domestic and international markets.

How the Company Makes Money

Showa Sangyo Co., Ltd. generates revenue primarily through the production and sale of flour, vegetable oils, and processed food products. The company operates flour mills and oil processing plants, allowing it to produce a vast array of products that are distributed to retail outlets, food service providers, and industrial clients. Key revenue streams include sales from its flour and oil products, which are essential ingredients in the food industry, and its processed food segment, which offers value-added products like pasta and frozen goods. Additionally, Showa Sangyo benefits from strategic partnerships and a strong distribution network that enhances its market reach and sales potential.

Showa Sangyo Co., Ltd. Financial Statement Overview

Summary

Showa Sangyo Co., Ltd. demonstrates a stable financial position with consistent profitability and a strong equity base. Despite a slight decline in revenue, the company maintains margins through effective cost control. The balance sheet is healthy with moderate leverage and a strong equity position, though return on equity could be improved. Cash flow management poses challenges, particularly in free cash flow.

Income Statement

Showa Sangyo Co., Ltd. has shown stable income statement metrics with a strong gross profit margin of 17.1% for the latest year. However, there was a slight decline in total revenue by approximately 3.4% from the previous year. The net profit margin stands at a healthy 3.5%, supported by a robust EBITDA margin of 8.1%. Despite a reduction in revenue, the company has managed to maintain profitability, indicating strong cost management.

Balance Sheet

The company's balance sheet reflects a sound equity position with a debt-to-equity ratio of 0.37, indicating moderate leverage. The return on equity (ROE) is 8.6%, which is decent but could be improved. The equity ratio of 52.8% suggests a strong equity buffer, underscoring financial stability. Overall, the balance sheet is stable with room for improvement in leveraging equity for higher returns.

Cash Flow

Cash flow analysis reveals challenges in free cash flow growth, with a decline from the previous year. The operating cash flow to net income ratio is 1.75, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio is 0.73, suggesting potential constraints on free cash flow. Managing capital expenditures effectively could enhance cash flow stability.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	334.43B	346.36B	335.05B	287.63B	256.00B
Gross Profit	57.08B	56.88B	45.54B	46.20B	46.64B
EBITDA	27.18B	23.21B	21.17B	16.19B	20.55B
Net Income	11.60B	12.36B	7.78B	4.01B	10.12B
Balance Sheet
Total Assets	255.50B	262.24B	247.77B	231.31B	213.31B
Cash, Cash Equivalents and Short-Term Investments	8.11B	8.14B	6.22B	9.17B	11.16B
Total Debt	50.59B	54.18B	61.66B	53.12B	45.77B
Total Liabilities	116.88B	128.99B	131.41B	122.22B	110.23B
Stockholders Equity	134.98B	129.61B	113.00B	105.70B	99.61B
Cash Flow
Free Cash Flow	8.49B	12.64B	-13.05B	-10.03B	3.01B
Operating Cash Flow	20.27B	23.75B	-2.93B	1.33B	13.77B
Investing Cash Flow	-11.38B	-12.40B	-6.16B	-11.73B	-26.38B
Financing Cash Flow	-10.06B	-9.44B	6.14B	8.40B	13.80B

Showa Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2920.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2004, the sentiment is Positive. The current price of 2920 is below the 20-day moving average (MA) of 2923.35, above the 50-day MA of 2910.16, and above the 200-day MA of 2823.55, indicating a bullish trend. The MACD of -3.08 indicates Negative momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 84.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2004.

Showa Sangyo Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1379	74 Outperform	¥57.86B	13.05		2.73%	4.63%	27.74%
2292	70 Neutral	¥82.14B	20.19		3.40%	3.99%	-32.61%
2003	69 Neutral	¥65.93B	18.57		3.83%	-0.35%	-16.23%
2004	69 Neutral	¥96.54B	8.36		3.36%	-3.45%	-3.91%
2938	66 Neutral	¥55.39B	25.10		1.07%	13.62%	24.54%
Sector *	65 Neutral	$27.19B	15.58	-4.44%	2.56%	1.05%	4.97%
2874	63 Neutral	¥61.48B	15.56		2.29%	1.11%	―

Showa Sangyo Co., Ltd. Corporate Events

Showa Sangyo Completes Treasury Share Disposal for Compensation

Showa Sangyo Co., Ltd. has completed the payment for the disposal of treasury shares as restricted stock compensation, following a resolution by its Board of Directors. This move involves the disposal of 26,398 shares at a price of 2,959 yen per share, totaling 78,111,682 yen, and is aimed at compensating six directors of the company.

Showa Sangyo Announces Disposal of Treasury Shares for Director Incentives

Showa Sangyo Co., Ltd. announced the disposal of 26,398 treasury shares as part of its Restricted Stock Compensation System, aimed at incentivizing directors to drive sustainable corporate growth. This move is part of the company’s broader strategy to enhance corporate value and align directors’ interests with shareholders, amidst an uncertain business environment.

Showa Sangyo Reports Decline in FY2025 Financial Performance

Showa Sangyo Co., Ltd. reported a decline in its financial performance for the fiscal year ended March 31, 2025, with net sales and profits showing a year-on-year decrease. Despite the downturn, the company increased its annual dividend per share, reflecting a commitment to shareholder returns. The financial results indicate challenges in maintaining profitability, but the company remains focused on sustaining shareholder value.