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

• Market Cap: ¥95.28B
• Dividend Yield: 4.08%
• Average Volume (3M): 28.00K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.45
• 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: 33,570
• 30 Day Avg. Volume: 28,000
• PEG Ratio: 0.12
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.50
• 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

• Rating: 70 Outperform
• Price Target: ¥3,178.00 ▲(8.21%Upside)

Showa Sangyo Co., Ltd. scores well due to its valuation, featuring an attractive P/E ratio and high dividend yield, making it appealing for value investors. Financial performance shows stability and effective cost management, although cash flow management remains an area to monitor. Technical analysis provides a neutral outlook with no strong momentum signals.

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

Company Description

Showa Sangyo Co., Ltd. is a Japanese company engaged primarily in the production and sale of food products. Established in 1936, the company operates in various sectors including flour milling, food production, and oil and fat processing. Its core products include wheat flour, pasta, vegetable oils, margarine, and premixes for home and industrial use. Showa Sangyo is committed to providing high-quality food ingredients and products to meet the diverse needs of its customers both domestically and internationally.

How the Company Makes Money

Showa Sangyo Co., Ltd. generates revenue through multiple streams within the food and agricultural sectors. The company's primary revenue stream is the sale of its flour and processed food products to both retail and industrial customers. This includes supplying flour to bakeries, confectioneries, and the foodservice industry. Additionally, Showa Sangyo produces and sells vegetable oils and margarine, which contribute significantly to its earnings. The company also engages in the production of premixes and other food ingredients tailored for various culinary applications. Partnerships with other food manufacturers and distributors enhance its market reach and revenue potential. Showa Sangyo's focus on quality and innovation helps maintain its competitive edge and customer loyalty, further bolstering its financial performance.

Showa Sangyo Co., Ltd. Financial Statement Overview

Summary

Showa Sangyo Co., Ltd. has a stable financial position with consistent profitability. The company maintains strong margins despite a slight revenue decline, indicating effective cost control. The balance sheet is healthy, with moderate leverage and a strong equity position, though ROE could see improvement. Cash flow management poses challenges, especially in free cash flow growth.

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	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	336.47B	334.43B	346.36B	335.05B	287.63B	256.00B
Gross Profit	57.24B	57.08B	56.88B	45.54B	46.20B	46.64B
EBITDA	26.80B	27.18B	23.21B	21.17B	16.19B	20.55B
Net Income	12.39B	11.60B	12.36B	7.78B	4.01B	10.12B
Balance Sheet
Total Assets	262.63B	255.50B	262.24B	247.77B	231.31B	213.31B
Cash, Cash Equivalents and Short-Term Investments	7.41B	8.11B	8.14B	6.22B	9.17B	11.16B
Total Debt	57.50B	50.59B	54.18B	61.66B	53.12B	45.77B
Total Liabilities	124.78B	116.88B	128.99B	131.41B	122.22B	110.23B
Stockholders Equity	134.18B	134.98B	129.61B	113.00B	105.70B	99.61B
Cash Flow
Free Cash Flow	0.00	8.49B	12.64B	-13.05B	-10.03B	3.01B
Operating Cash Flow	0.00	20.27B	23.75B	-2.93B	1.33B	13.77B
Investing Cash Flow	0.00	-11.38B	-12.40B	-6.16B	-11.73B	-26.38B
Financing Cash Flow	0.00	-10.06B	-9.44B	6.14B	8.40B	13.80B

Showa Sangyo Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2937.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2004, the sentiment is Neutral. The current price of 2937 is above the 20-day moving average (MA) of 2930.85, above the 50-day MA of 2935.32, and above the 200-day MA of 2817.99, indicating a neutral trend. The MACD of 10.94 indicates Positive momentum. The RSI at 48.98 is Neutral, neither overbought nor oversold. The STOCH value of 33.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	72 Outperform	¥56.63B	12.77		4.45%	4.63%	27.74%
2938	72 Outperform	¥56.72B	25.72		0.55%	13.62%	24.54%
2004	70 Outperform	¥95.28B	8.25		4.08%	-3.45%	-3.91%
2003	68 Neutral	¥65.29B	18.39		3.91%	-0.35%	-16.23%
Sector *	68 Neutral	S$3.42B	16.93	-11.82%	6.43%	5.14%	-8.01%
2292	64 Neutral	¥82.83B	31.09		3.44%	4.60%	-70.62%
2874	56 Neutral	¥51.54B	13.04		2.74%	1.11%	―

Showa Sangyo Co., Ltd. Corporate Events

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.