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Showa Sangyo Co., Ltd. (JP:2004)
:2004
Japanese Market
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Showa Sangyo Co., Ltd. (2004) AI Stock Analysis

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JP:2004

Showa Sangyo Co., Ltd.

(2004)

Rating:69Neutral
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. (2004) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionShowa 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 MoneyShowa 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
75
Positive
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
70
Positive
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
65
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue334.43B346.36B335.05B287.63B256.00B
Gross Profit57.08B56.88B45.54B46.20B46.64B
EBITDA27.18B23.21B21.17B16.19B20.55B
Net Income11.60B12.36B7.78B4.01B10.12B
Balance Sheet
Total Assets255.50B262.24B247.77B231.31B213.31B
Cash, Cash Equivalents and Short-Term Investments8.11B8.14B6.22B9.17B11.16B
Total Debt50.59B54.18B61.66B53.12B45.77B
Total Liabilities116.88B128.99B131.41B122.22B110.23B
Stockholders Equity134.98B129.61B113.00B105.70B99.61B
Cash Flow
Free Cash Flow8.49B12.64B-13.05B-10.03B3.01B
Operating Cash Flow20.27B23.75B-2.93B1.33B13.77B
Investing Cash Flow-11.38B-12.40B-6.16B-11.73B-26.38B
Financing Cash Flow-10.06B-9.44B6.14B8.40B13.80B

Showa Sangyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2920.00
Price Trends
50DMA
2910.16
Positive
100DMA
2898.43
Positive
200DMA
2823.55
Positive
Market Momentum
MACD
-3.08
Negative
RSI
53.45
Neutral
STOCH
84.14
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥57.86B13.05
2.73%4.63%27.74%
70
Neutral
¥82.14B20.19
3.40%3.99%-32.61%
69
Neutral
¥65.93B18.57
3.83%-0.35%-16.23%
69
Neutral
¥96.54B8.36
3.36%-3.45%-3.91%
66
Neutral
¥55.39B25.10
1.07%13.62%24.54%
65
Neutral
$27.19B15.58-4.44%2.56%1.05%4.97%
63
Neutral
¥61.48B15.56
2.29%1.11%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2004
Showa Sangyo Co., Ltd.
2,976.00
-145.82
-4.67%
JP:1379
Hokuto Corporation
1,833.00
-16.76
-0.91%
JP:2003
Nitto Fuji Flour Milling Co., Ltd.
7,320.00
401.34
5.80%
JP:2292
S Foods Inc.
2,617.00
-312.59
-10.67%
JP:2874
YOKOREI CO. LTD.
1,050.00
9.35
0.90%
JP:2938
Okamura Foods Co. Ltd.
1,149.00
557.23
94.16%

Showa Sangyo Co., Ltd. Corporate Events

Showa Sangyo Completes Treasury Share Disposal for Compensation
Jul 23, 2025

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
Jun 24, 2025

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
May 12, 2025

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.

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: Jul 16, 2025