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

• Market Cap: ¥95.41B
• Dividend Yield: 3.67%
• Average Volume (3M): 24.58K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.40
• Revenue Growth: -2.01%
• EPS Growth: -29.88%
• Country: JP
• Employees: 2,858
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Agricultural Farm Products
• EPS (TTM): 88.37
• Shares Outstanding: 32,995,420
• 10 Day Avg. Volume: 33,800
• 30 Day Avg. Volume: 24,583
• PEG Ratio: -2.19
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 10.88
• 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
• EPS Forecast (FY): 47,500
• Revenue Forecast (FY): ¥51.35T

• Rating: 71 Outperform
• Price Target: ¥3,315.00 ▲(9.23% Upside)

Showa Sangyo Co., Ltd. scores well due to its stable financial performance and attractive valuation. The company's strong equity base and effective cost management support its financial health. The stock's valuation is appealing with a reasonable P/E ratio and a solid dividend yield. Technical indicators are mixed, with some positive momentum but no strong signals. Overall, the stock is a solid performer in the agricultural farm products industry.

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

Company Description

Showa Sangyo Co., Ltd. is a diversified trading company based in Japan, established in 2004. The company operates across several sectors, including chemicals, plastics, and industrial materials. Its core products encompass a wide range of chemicals and materials used in various industries, such as automotive, electronics, and construction, catering to both domestic and international markets.

How the Company Makes Money

Showa Sangyo Co., Ltd. generates revenue primarily through the trading of chemicals and industrial materials. The company acts as an intermediary between manufacturers and end-users, earning profits from the markup on products it sells. Key revenue streams include the sale of chemical products, plastics, and other industrial materials, along with potential consulting services related to supply chain management. Additionally, strategic partnerships with manufacturers and suppliers enhance its product offerings and market reach, contributing significantly to its earnings.

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. The company has managed to maintain margins despite a slight decline in revenue, indicating 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 some challenges, particularly in terms of free cash flow, but overall, the company is financially sound.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	333.14B	334.43B	346.36B	335.05B	287.63B	256.00B
Gross Profit	56.88B	57.08B	56.88B	45.54B	46.20B	46.64B
EBITDA	22.02B	27.18B	27.08B	21.17B	16.19B	20.55B
Net Income	9.18B	11.60B	12.36B	7.78B	4.01B	10.12B
Balance Sheet
Total Assets	258.35B	255.50B	262.24B	247.77B	231.31B	213.31B
Cash, Cash Equivalents and Short-Term Investments	7.72B	8.11B	8.14B	6.22B	9.17B	11.16B
Total Debt	51.68B	50.59B	54.18B	61.66B	53.12B	45.77B
Total Liabilities	118.45B	116.88B	128.99B	131.41B	122.22B	110.23B
Stockholders Equity	136.24B	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: Negative
• Last Price: 3035.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 3035 is above the 20-day moving average (MA) of 3017.45, above the 50-day MA of 3022.52, and above the 200-day MA of 2883.70, indicating a neutral trend. The MACD of -17.63 indicates Positive momentum. The RSI at 38.63 is Neutral, neither overbought nor oversold. The STOCH value of 25.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2874	74 Outperform	¥72.42B	15.92	―	1.88%	3.24%	―
1379	74 Outperform	¥57.92B	11.04	―	2.67%	4.23%	18.36%
2004	71 Outperform	¥95.41B	9.77	―	3.67%	-2.01%	-29.88%
2003	71 Outperform	¥60.65B	17.74	―	4.03%	1.21%	-14.59%
2292	70 Neutral	¥79.80B	14.26	―	3.78%	4.55%	79.33%
2938	63 Neutral	¥60.02B	29.22	―	0.29%	8.20%	0.15%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Showa Sangyo Co., Ltd. Corporate Events

Showa Sangyo Reports Decline in Quarterly Profits but Projects Annual Sales Growth

Showa Sangyo Co., Ltd. reported a decrease in its financial performance for the three months ended June 30, 2025, with net sales declining by 1.5% and profit attributable to owners of the parent dropping by 45.6% compared to the previous year. Despite the downturn, the company forecasts a slight increase in net sales for the full fiscal year ending March 31, 2026, although it anticipates a decrease in operating and ordinary profits, which may affect stakeholder expectations and market positioning.