Showa Sangyo Co., Ltd. (JP:2004)
:2004
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Showa Sangyo Co., Ltd.
(2004)
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Rating:64Neutral
Price Target:
¥3,264.00
▲(8.26% Upside)
Action:Downgraded
Date:05/15/26
The score is driven primarily by improving financial fundamentals (earnings recovery and a stronger, less-levered balance sheet), supported by attractive valuation (low P/E and solid dividend yield). These positives are partially offset by weak technical momentum and lingering free-cash-flow volatility.
Positive Factors
Strengthening balance sheet
A declining debt-to-equity trend and steadily rising equity through 2026 improves financial flexibility and resilience. This durable de-leveraging reduces default and refinancing risk, enabling funding for capex, working capital and strategic initiatives over the next 2–6 months.
Negative Factors
Volatile free cash flow
Intermittent negative OCF and volatile free cash flow weaken the firm's ability to consistently fund capex, dividends and debt service from operations. Persistent FCF variability increases reliance on external funding and raises execution risk for investments and shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthening balance sheet
A declining debt-to-equity trend and steadily rising equity through 2026 improves financial flexibility and resilience. This durable de-leveraging reduces default and refinancing risk, enabling funding for capex, working capital and strategic initiatives over the next 2–6 months.
Read all positive factors
Showa Sangyo Co., Ltd. (2004) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥104.13B
Dividend Yield3.8%
Average Volume (3M)27.93K
Price to Earnings (P/E)10.0
Beta (1Y)0.46
Revenue Growth0.30%
EPS Growth-7.99%
CountryJP
Employees2,858
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)282.53
Shares Outstanding32,995,420
10 Day Avg. Volume29,850
30 Day Avg. Volume27,930
Financial Highlights & Ratios
PEG Ratio-1.21
Price to Book (P/B)0.71
Price to Sales (P/S)0.32
P/FCF Ratio16.79
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)308.3
Revenue Forecast (FY)¥333.57B
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 primarily by manufacturing and selling grain- and oilseed-derived products through retail and business-to-business channels. Key revenue streams include: (1) Flour and wheat-related products: revenue from milling wheat int...
Showa Sangyo Co., Ltd. Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
74
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 333.14B | 335.41B | 334.43B | 346.36B | 335.05B | 287.63B |
| Gross Profit | 56.88B | 59.79B | 57.08B | 56.88B | 45.54B | 46.20B |
| EBITDA | 22.02B | 22.29B | 27.18B | 27.08B | 21.17B | 16.19B |
| Net Income | 9.18B | 10.61B | 11.60B | 12.36B | 7.78B | 4.01B |
Balance Sheet | ||||||
| Total Assets | 258.35B | 274.97B | 258.77B | 265.85B | 251.59B | 235.38B |
| Cash, Cash Equivalents and Short-Term Investments | 7.72B | 8.35B | 8.11B | 8.14B | 6.22B | 9.17B |
| Total Debt | 51.68B | 51.03B | 53.95B | 58.74B | 63.26B | 56.14B |
| Total Liabilities | 118.45B | 122.36B | 120.14B | 132.59B | 135.23B | 126.28B |
| Stockholders Equity | 136.24B | 149.29B | 134.98B | 129.61B | 113.00B | 105.70B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 6.31B | 8.49B | 12.64B | -13.05B | -10.03B |
| Operating Cash Flow | 0.00 | 18.01B | 20.27B | 23.75B | -2.93B | 1.33B |
| Investing Cash Flow | 0.00 | -12.54B | -11.38B | -12.40B | -6.16B | -11.73B |
| Financing Cash Flow | 0.00 | -3.97B | -10.06B | -9.44B | 6.14B | 8.40B |
Showa Sangyo Co., Ltd. Technical Analysis
Positive
3015.00
Price Trends
3183.22
Positive
3152.17
Positive
3049.77
Positive
Market Momentum
-8.05
Negative
68.59
Neutral
84.82
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 3015 is below the 20-day moving average (MA) of 3095.75, below the 50-day MA of 3183.22, and below the 200-day MA of 3049.77, indicating a bullish trend. The MACD of -8.05 indicates Negative momentum. The RSI at 68.59 is Neutral, neither overbought nor oversold. The STOCH value of 84.82 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ¥60.10B | 8.50 | ― | 2.44% | 3.38% | 57.67% | |
70 Outperform | ¥65.54B | 19.80 | ― | 3.98% | 0.60% | -6.50% | |
64 Neutral | ¥104.13B | 9.98 | ― | 3.80% | 0.30% | -7.99% | |
63 Neutral | ¥69.85B | 22.50 | ― | 0.34% | 10.22% | 13.91% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | ¥196.68B | 9.92 | 7.56% | 2.84% | 2.53% | -4.69% | |
56 Neutral | ¥89.31B | 10.54 | ― | 3.59% | 6.25% | 246.08% |
* Consumer Defensive Sector Average
JP:2004
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Showa Sangyo Co., Ltd. Corporate Events
Showa Sangyo to Tie Executive Pay to Performance with New Stock-Based Plan
May 14, 2026
Showa Sangyo will introduce a new performance-linked, stock-based remuneration plan called the Board Benefit Trust-Restricted Stock, subject to shareholder approval at its June 25, 2026 annual general meeting. The plan is designed to tie compensat...
Showa Sangyo to Scrap Takeover Defense and Strip It From Articles
May 14, 2026
Showa Sangyo will abolish its takeover defense plan, originally introduced in 2008 and most recently renewed in 2023, when it expires at the close of its June 25, 2026 annual shareholders meeting. The board concluded that its new long-term “...
Showa Sangyo Lifts Year-End Dividend, Boosting Annual Shareholder Payout
May 14, 2026
Showa Sangyo Co., Ltd. has approved a higher year-end dividend for the fiscal year ended March 31, 2026, raising the payout to 65 yen per share from the previously forecast 50 yen. Including an interim dividend of 50 yen already paid, the total an...
Showa Sangyo Lifts Dividends Amid Softer Profit Outlook for FY2027
May 14, 2026
Showa Sangyo reported fiscal year 2026 consolidated net sales of ¥335.4 billion, essentially flat year on year, while operating profit rose 7.3% to ¥11.9 billion and ordinary profit increased 6.4%, though profit attributable to owners of...
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 ...
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.