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

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

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JP:2004

Showa Sangyo Co., Ltd.

(2004)

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Outperform 71 (OpenAI - 5.2)
Rating:71Outperform
Price Target:
¥3,647.00
▲(20.96% Upside)
Action:UpgradedDate:10/30/25
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.
Positive Factors
Balance sheet strength
A low debt-to-equity ratio (0.37) and a 52.8% equity ratio provide a durable financial buffer for a commodity-processing firm. This reduces solvency risk during raw-material shocks, supports working-capital cycles, and preserves capacity for targeted capex or acquisitions over the next several quarters.
Negative Factors
Revenue decline
A recurring revenue decline, even modest, can erode scale in milling and oil processing where fixed costs are significant. If the trend persists, it pressures long-term growth prospects, limits pricing power with suppliers/customers, and may constrain investments in higher-margin product lines.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
A low debt-to-equity ratio (0.37) and a 52.8% equity ratio provide a durable financial buffer for a commodity-processing firm. This reduces solvency risk during raw-material shocks, supports working-capital cycles, and preserves capacity for targeted capex or acquisitions over the next several quarters.
Read all positive factors

Showa Sangyo Co., Ltd. (2004) vs. iShares MSCI Japan ETF (EWJ)

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

Company Description
Showa Sangyo Co., Ltd. manufactures, processes, and sells food products in Japan. Its household foods business offers a range of food products, including vegetable oils, wheat flour, tempura batter mixes, hotcake mixes and other premixes, pasta, h...
How the Company Makes Money
Showa Sangyo makes money mainly by purchasing agricultural raw materials (e.g., wheat and oilseeds), processing them in its facilities, and selling the resulting products through a mix of business-to-business and consumer channels. Key revenue str...

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
75
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue333.14B334.43B346.36B335.05B287.63B256.00B
Gross Profit56.88B57.08B56.88B45.54B46.20B46.64B
EBITDA22.02B27.18B27.08B21.17B16.19B20.55B
Net Income9.18B11.60B12.36B7.78B4.01B10.12B
Balance Sheet
Total Assets258.35B258.77B265.85B251.59B235.38B217.70B
Cash, Cash Equivalents and Short-Term Investments7.72B8.11B8.14B6.22B9.17B11.16B
Total Debt51.68B53.95B58.74B63.26B56.14B45.77B
Total Liabilities118.45B120.14B132.59B135.23B126.28B114.62B
Stockholders Equity136.24B134.98B129.61B113.00B105.70B99.61B
Cash Flow
Free Cash Flow0.008.49B12.64B-13.05B-10.03B3.01B
Operating Cash Flow0.0020.27B23.75B-2.93B1.33B13.77B
Investing Cash Flow0.00-11.38B-12.40B-6.16B-11.73B-26.38B
Financing Cash Flow0.00-10.06B-9.44B6.14B8.40B13.80B

Showa Sangyo Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3015.00
Price Trends
50DMA
3245.89
Positive
100DMA
3091.25
Positive
200DMA
3007.73
Positive
Market Momentum
MACD
3.93
Negative
RSI
50.68
Neutral
STOCH
60.00
Neutral
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 3015 is below the 20-day moving average (MA) of 3247.27, below the 50-day MA of 3245.89, and above the 200-day MA of 3007.73, indicating a bullish trend. The MACD of 3.93 indicates Negative momentum. The RSI at 50.68 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥60.95B4.622.44%5.74%76.28%
76
Outperform
¥224.60B9.637.56%2.84%2.63%-7.81%
71
Outperform
¥105.59B7.713.80%-2.01%-29.88%
71
Outperform
¥67.81B13.323.98%1.21%-14.59%
63
Neutral
¥60.74B22.470.34%4.70%-2.58%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
53
Neutral
¥96.58B7.703.59%4.55%79.33%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:2004
Showa Sangyo Co., Ltd.
3,255.00
692.99
27.05%
JP:1333
Maruha Nichiro
1,480.50
515.77
53.46%
JP:1379
Hokuto Corporation
1,933.00
242.53
14.35%
JP:2003
Nitto Fuji Flour Milling Co., Ltd.
1,820.00
282.81
18.40%
JP:2292
S Foods Inc.
3,055.00
862.55
39.34%
JP:2938
Okamura Foods Co. Ltd.
1,209.00
523.32
76.32%

Showa Sangyo Co., Ltd. Corporate Events

Showa Sangyo Sets 2035 Profit Targets and Overhauls Dividend Policy
Feb 20, 2026
Showa Sangyo has revised its group management philosophy to emphasize “growing possibilities” from individual grains and people, reflecting a shift toward pursuing the broader potential of grains and long-term societal and environmenta...
Showa Sangyo Reshapes Governance With Change in Representative Director Role
Feb 20, 2026
Showa Sangyo Co., Ltd. said its board has approved a change in representative directors as part of a broader review of its management structure. The move signals an adjustment in governance rather than a shift in day-to-day leadership, reflecting ...
Showa Sangyo Posts Stable Sales but Lower Profit, Maintains Earnings and Dividend Outlook
Feb 6, 2026
Showa Sangyo reported consolidated net sales of ¥254.5 billion for the nine months ended December 31, 2025, down 0.4% year-on-year, with operating profit up 2.7% to ¥10.0 billion and ordinary profit flat, while profit attributable to own...
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: Oct 30, 2025