SHOWA PAXXS CORP. (3954) AI Stock Analysis

• Market Cap: ¥12.88B
• Dividend Yield: 1.37%
• Average Volume (3M): 5.23K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.57
• Revenue Growth: 8.41%
• EPS Growth: 3.21%
• Country: JP
• Employees: 664
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 82.67
• Shares Outstanding: 4,450,000
• 10 Day Avg. Volume: 5,600
• 30 Day Avg. Volume: 5,230
• PEG Ratio: 0.17
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 8.36
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 83 Outperform
• Price Target: ¥2,730.00 ▼(-5.86% Downside)

SHOWA PAXXS CORP. receives a strong overall score due to its excellent financial performance, characterized by solid revenue growth, profitability, and cash flow efficiency. The valuation is also a significant strength, with an attractive P/E ratio and reasonable dividend yield. While technical analysis indicates positive momentum, caution is advised due to overbought conditions.

SHOWA PAXXS CORP. Business Overview & Revenue Model

Company Description

Showa Paxxs Corporation manufactures and sells packaging containers and materials in Japan and internationally. It offers Kraft paper bags, such as flash pinch, double pinch, SES pinch, sunny easy pack, easy pack, Z hold, single and double bottom, echo, SCE, rice wheat, bax, and elpax bags, as well as bag in bags; medium sized bags for rice milling; polyethylene heavy bags; and Showa traceability systems. The company also provides containers for powder grains and liquids; and packaging machine equipment. Further, it leases real estate properties. The company was founded in 1935 and is headquartered in Tokyo, Japan.

How the Company Makes Money

SHOWA PAXXS CORP. generates revenue primarily through the sale of its packaging products to various industries. The company's revenue model is based on direct sales to manufacturers and retailers, where it provides both standard and custom packaging solutions tailored to client needs. Key revenue streams include bulk orders from large clients in the food and pharmaceutical sectors, as well as recurring revenue from long-term contracts with established partners. Additionally, SHOWA PAXXS benefits from strategic partnerships with suppliers of raw materials, enabling cost efficiencies and enhanced product offerings. The company's focus on sustainability also attracts environmentally conscious clients, contributing to its market competitiveness and revenue growth.

SHOWA PAXXS CORP. Financial Statement Overview

Summary

SHOWA PAXXS CORP. shows strong financial health with robust revenue growth and improving profitability. The balance sheet is stable with low leverage and a strong equity position, and cash flow generation is highly efficient, highlighting effective profit-to-cash conversion.

Income Statement

SHOWA PAXXS CORP. has demonstrated strong revenue growth, with a 7.7% increase from the previous year, indicating positive trajectory. The net profit margin improved to 5.66%, reflecting enhanced profitability. The gross profit margin is stable at 18.29%, and EBIT margin increased to 5.91%, showing operational efficiency. Overall, strong revenue growth and improving margins drive a high score.

Balance Sheet

The company maintains a robust equity base with a high equity ratio of 70.23%. The debt-to-equity ratio is low at 0.05, indicating low leverage and financial stability. Return on equity is 5.63%, reflecting a solid return on investment for shareholders. The strong equity position and low leverage contribute to a favorable balance sheet score.

Cash Flow

Operating cash flow increased significantly, more than doubling from the previous year, supporting liquidity. The free cash flow to net income ratio is healthy at 0.75, and the operating cash flow to net income ratio is strong at 1.49, indicating efficient cash generation. The substantial growth in free cash flow enhances the cash flow score.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.65B	23.32B	21.65B	22.28B	21.60B	19.94B
Gross Profit	4.44B	4.27B	3.82B	3.74B	3.98B	3.65B
EBITDA	2.27B	2.59B	1.97B	1.95B	2.16B	1.82B
Net Income	1.23B	1.32B	962.35M	947.99M	1.10B	901.02M
Balance Sheet
Total Assets	33.97B	33.38B	33.32B	30.35B	29.40B	27.83B
Cash, Cash Equivalents and Short-Term Investments	9.16B	8.94B	8.45B	8.15B	8.05B	7.58B
Total Debt	1.37B	1.21B	1.24B	1.29B	1.14B	1.16B
Total Liabilities	9.51B	9.11B	9.52B	9.09B	9.32B	8.77B
Stockholders Equity	23.64B	23.45B	23.05B	20.49B	19.39B	18.43B
Cash Flow
Free Cash Flow	0.00	984.18M	254.42M	-30.40M	685.97M	660.30M
Operating Cash Flow	0.00	1.97B	992.48M	773.83M	1.84B	1.51B
Investing Cash Flow	0.00	-2.29B	-700.43M	-773.19M	-1.16B	-868.35M
Financing Cash Flow	0.00	-326.97M	-240.99M	-38.25M	-201.17M	-218.84M

SHOWA PAXXS CORP. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2900.00
• 50DMA: Positive
• 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:3954, the sentiment is Positive. The current price of 2900 is below the 20-day moving average (MA) of 2914.94, above the 50-day MA of 2798.19, and above the 200-day MA of 2115.98, indicating a neutral trend. The MACD of 3.48 indicates Positive momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 65.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3954.

SHOWA PAXXS CORP. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3954	83 Outperform	¥12.88B	10.33	―	1.37%	8.41%	3.21%
3943	77 Outperform	¥11.11B	12.17	―	4.68%	7.00%	-28.12%
4994	76 Outperform	¥18.39B	11.46	―	2.59%	9.52%	17.71%
3944	72 Outperform	¥2.52B	7.07	―	2.19%	0.63%	31.77%
3951	70 Outperform	¥18.85B	12.05	―	4.31%	3.78%	-2.21%
3953	63 Neutral	¥2.82B	―	―	6.20%	2.82%	-140.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%