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Showa Chemical Industry Co., Ltd. (JP:4990)
:4990
Japanese Market
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Showa Chemical Industry Co., Ltd. (4990) Price & Analysis

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4990 Stock Chart & Stats

¥480.00
¥5.00(1.11%)
At close: 4:00 PM EST
¥480.00
¥5.00(1.11%)

Bulls Say, Bears Say

Bulls Say
Improved LeverageDebt-to-equity falling to ~0.36 strengthens the balance sheet, lowering interest burden and financial risk. That durable improvement expands optionality for capital allocation (capex, dividends, M&A) and increases resilience to cyclical downturns over the next several quarters.
Consistent Positive Cash FlowRepeated positive operating and free cash flow supports internal funding of operations and distributions without heavy reliance on external financing. Sustained cash generation underpins long-term financial flexibility and the ability to invest in strategic initiatives despite short-term earnings swings.
Stable Gross MarginsA steady ~30–32% gross margin implies consistent product-level profitability and cost control in specialty chemicals. That structural margin stability provides a durable earnings floor, helping the company preserve cash margins even if operating costs or top-line mix fluctuate.
Bears Say
Declining Net ProfitabilityNet margin erosion from ~6.7% to ~4.5% reduces earnings resilience and the cushion for reinvestment or distributions. If this trend persists, it can constrain free cash flow conversion and limit the firm's ability to fund strategic projects without cutting costs or raising prices, which is risky.
Sharp FY2026 Revenue ContractionA pronounced FY2026 revenue drop raises concerns about demand durability, customer losses, or pricing pressure. Structural top-line weakness undermines planning, compresses operating leverage, and increases uncertainty around medium-term earnings recovery and investment payback timelines.
Uneven Free Cash Flow ConversionInconsistent FCF conversion—FCF covering only ~50% of net income in FY2025—means earnings are not reliably translating into cash. That variability can strain liquidity during downturns, reduce funding for growth or payouts, and elevate reliance on external financing when business conditions worsen.

4990 FAQ

What was Showa Chemical Industry Co., Ltd.’s price range in the past 12 months?
Showa Chemical Industry Co., Ltd. lowest stock price was ¥452.00 and its highest was ¥590.00 in the past 12 months.
    What is Showa Chemical Industry Co., Ltd.’s market cap?
    Showa Chemical Industry Co., Ltd.’s market cap is ¥5.14B.
      When is Showa Chemical Industry Co., Ltd.’s upcoming earnings report date?
      Showa Chemical Industry Co., Ltd.’s upcoming earnings report date is Aug 07, 2026 which is in 68 days.
        How were Showa Chemical Industry Co., Ltd.’s earnings last quarter?
        Showa Chemical Industry Co., Ltd. released its earnings results on May 15, 2026. The company reported ¥6.16 earnings per share for the quarter, beating the consensus estimate of N/A by ¥6.16.
          Is Showa Chemical Industry Co., Ltd. overvalued?
          According to Wall Street analysts Showa Chemical Industry Co., Ltd.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium
            Does Showa Chemical Industry Co., Ltd. pay dividends?
            Showa Chemical Industry Co., Ltd. pays a Semiannually dividend of ¥3 which represents an annual dividend yield of 1.22%. See more information on Showa Chemical Industry Co., Ltd. dividends here
              What is Showa Chemical Industry Co., Ltd.’s EPS estimate?
              Showa Chemical Industry Co., Ltd.’s EPS estimate for its next earnings report is not yet available.
              How many shares outstanding does Showa Chemical Industry Co., Ltd. have?
              Showa Chemical Industry Co., Ltd. has 11,979,000 shares outstanding.
                What happened to Showa Chemical Industry Co., Ltd.’s price movement after its last earnings report?
                Showa Chemical Industry Co., Ltd. reported an EPS of ¥6.16 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -6.286%.
                  Which hedge fund is a major shareholder of Showa Chemical Industry Co., Ltd.?
                  Currently, no hedge funds are holding shares in JP:4990
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    Showa Chemical Industry Co., Ltd.

                    Showa Chemical Industry Co., Ltd. engages in manufacturing and selling diatomite and perlite filter aids under the Radiolite trademark and Topco brand in China and Japan. Its diatomite and perlite filter aids are used to remove particulates from liquids and gases, as well as liquid filtration applications. The company also provides functional additives for use in coatings, agricultural chemicals, and other industrial products. Showa Chemical Industry Co., Ltd. was founded in 1930 and is headquartered in Tokyo, Japan.

                    Showa Chemical Industry Co., Ltd. (4990) Earnings & Revenues

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