Showa System Engineering Corporation (4752) AI Stock Analysis

• Market Cap: ¥7.27B
• Dividend Yield: 3.35%
• Average Volume (3M): 1.89K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.21
• Revenue Growth: 5.59%
• EPS Growth: 16.69%
• Country: JP
• Employees: 455
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 48.95
• Shares Outstanding: 4,810,000
• 10 Day Avg. Volume: 2,040
• 30 Day Avg. Volume: 1,886
• PEG Ratio: 0.89
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 21.08
• 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: 81 Outperform
• Price Target: ¥1,893.00 ▲(15.36% Upside)

Showa System Engineering's strong financial performance and attractive valuation are the primary drivers of its high score. The positive technical indicators further support the stock's potential. However, the decline in free cash flow is a notable risk that should be monitored.

Showa System Engineering Corporation Business Overview & Revenue Model

Company Description

Showa System Engineering Corporation engages in the development, operation, and consulting of information systems. It also offers system integration and BPO services. The company serves manufacturing, distribution, medical care, and public services sectors. Showa System Engineering Corporation was founded in 1966 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Showa System Engineering generates revenue through multiple streams, primarily from its software development and IT consulting services. The company charges clients for custom software solutions, system integration projects, and ongoing IT support services. Additionally, it may earn revenue from maintenance contracts and updates for the systems it develops. Significant partnerships with technology vendors and other service providers may also contribute to its earnings, as these collaborations enable Showa System Engineering to offer comprehensive solutions and expand its client base. The company's ability to adapt to market demands and leverage new technologies further supports its revenue generation.

Showa System Engineering Corporation Financial Statement Overview

Summary

Showa System Engineering demonstrates strong revenue growth and profitability metrics. The balance sheet is solid with low leverage and high equity ratios. However, weaknesses in the cash flow statement, particularly with declining free cash flow, slightly impact the overall score.

Income Statement

Showa System Engineering has demonstrated consistent revenue growth over the past five years, with a notable increase of 4.5% in the most recent year. The gross profit margin is strong at 17.53%, and the net profit margin has improved to 8.58%. The company's EBIT and EBITDA margins are robust, indicating efficient operations. However, there is room for further improvement in cost management to enhance profitability.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.002, showcasing minimal leverage. The return on equity stands at an impressive 13.37%, reflecting efficient use of shareholder funds. The equity ratio is healthy at 61.58%, indicating financial stability with significant shareholder equity relative to total assets.

Cash Flow

The company experienced a decline in free cash flow by 63.18% in the latest year, which may be a concern. However, the operating cash flow remains positive and the operating cash flow to net income ratio is favorable at 0.87, indicating that the company generates sufficient cash from its operations relative to its net income. Improvement in free cash flow generation is recommended.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.42B	8.32B	7.96B	7.09B	6.46B	6.01B
Gross Profit	1.52B	1.46B	1.40B	1.23B	1.08B	959.85M
EBITDA	1.02B	986.25M	949.44M	793.01M	635.45M	525.37M
Net Income	748.12M	714.13M	660.50M	526.83M	420.06M	345.85M
Balance Sheet
Total Assets	8.33B	8.68B	8.29B	7.68B	7.22B	6.77B
Cash, Cash Equivalents and Short-Term Investments	5.54B	5.78B	5.78B	5.26B	5.00B	4.59B
Total Debt	10.00M	10.00M	10.00M	10.00M	10.00M	10.00M
Total Liabilities	2.97B	3.33B	3.35B	3.26B	3.21B	3.06B
Stockholders Equity	5.36B	5.34B	4.93B	4.41B	4.01B	3.71B
Cash Flow
Free Cash Flow	0.00	282.16M	766.51M	394.99M	592.09M	252.74M
Operating Cash Flow	0.00	624.91M	769.50M	475.30M	602.86M	258.22M
Investing Cash Flow	0.00	-340.67M	-7.63M	-72.53M	-33.44M	-19.47M
Financing Cash Flow	0.00	-288.14M	-239.20M	-139.49M	-165.28M	-105.82M

Showa System Engineering Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1641.00
• 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:4752, the sentiment is Positive. The current price of 1641 is above the 20-day moving average (MA) of 1611.90, above the 50-day MA of 1578.08, and above the 200-day MA of 1437.65, indicating a bullish trend. The MACD of 18.26 indicates Positive momentum. The RSI at 56.85 is Neutral, neither overbought nor oversold. The STOCH value of 66.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4752.

Showa System Engineering Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4752	81 Outperform	¥7.27B	9.46	―	3.35%	5.59%	16.69%
4012	77 Outperform	¥6.83B	11.01	―	1.55%	8.24%	15.72%
3625	72 Outperform	¥5.77B	11.56	―	0.98%	32.20%	221.55%
3940	72 Outperform	¥6.16B	15.17	―	2.46%	8.71%	4.70%
2488	69 Neutral	¥8.23B	13.88	―	2.61%	14.39%	22.26%
3682	63 Neutral	¥4.06B	18.48	―	3.25%	2.04%	-3.43%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%