Showa Chemical Industry Co., Ltd. (4990) AI Stock Analysis

• Market Cap: ¥5.01B
• Dividend Yield: 1.27%
• Average Volume (3M): 1.31K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.23
• Revenue Growth: 0.44%
• EPS Growth: -29.89%
• Country: JP
• Employees: 220
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 8.96
• Shares Outstanding: 11,979,000
• 10 Day Avg. Volume: 1,320
• 30 Day Avg. Volume: 1,306
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥510.00
• Price Target Upside: 8.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ¥510.00 ▲(8.05% Upside)

Showa Chemical Industry Co., Ltd. showcases strong financial performance and a stable equity base, despite some operational challenges. The technical analysis indicates positive price momentum, further supported by the stock's undervaluation relative to peers. These factors collectively contribute to a favorable stock outlook.

Showa Chemical Industry Co., Ltd. Business Overview & Revenue Model

Company Description

Showa Chemical Industry Co., Ltd. (4990) is a Japanese company specializing in the production and distribution of chemical products. The company operates in various sectors, including industrial chemicals, specialty chemicals, and consumer chemicals. Its core products include chemical reagents, agrochemicals, and materials for pharmaceuticals and electronics. Showa Chemical Industry is committed to innovation and sustainability, aiming to meet the diverse needs of its global customer base.

How the Company Makes Money

Showa Chemical Industry Co., Ltd. generates revenue primarily through the sale of its chemical products across different sectors. The company leverages its expertise in chemical manufacturing to provide high-quality products to industries such as agriculture, pharmaceuticals, and electronics. Key revenue streams include the sale of industrial and specialty chemicals, as well as consumer chemicals. The company may also engage in strategic partnerships and collaborations to enhance its product offerings and expand its market reach. Factors contributing to its earnings include its commitment to research and development, ensuring that its products meet the evolving demands of its customers and comply with environmental regulations.

Showa Chemical Industry Co., Ltd. Financial Statement Overview

Summary

Showa Chemical Industry Co., Ltd. demonstrates financial robustness with stable profitability and a strong equity base. Despite some recent challenges in revenue and profit margins, the overall financial health remains solid, supported by effective cash flow management and prudent financial structuring. Continued focus on operational efficiency could further enhance performance.

Income Statement

Showa Chemical Industry Co., Ltd. displayed consistent revenue growth over the years, with a slight dip in revenue and profit margins in the most recent period. The Gross Profit Margin and Net Profit Margin have been relatively stable, reflecting solid profitability. However, the declining EBIT margin indicates potential operational challenges.

Balance Sheet

The company maintains a strong equity position with a favorable Debt-to-Equity ratio, showcasing financial stability. The Return on Equity has been generally positive, indicating effective management of shareholder funds. The Equity Ratio suggests a healthy balance between debt and equity financing, minimizing financial risk.

Cash Flow

Cash flow analysis reveals stable Free Cash Flow, albeit with a recent decline in growth. The Operating Cash Flow to Net Income ratio indicates efficient cash generation relative to earnings. However, fluctuations in Free Cash Flow may suggest potential volatility in cash management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.24B	9.20B	9.23B	7.78B	7.68B
Gross Profit	2.81B	2.91B	2.95B	2.46B	2.47B
EBITDA	877.73M	753.00M	1.13B	799.10M	773.49M
Net Income	411.84M	584.40M	616.53M	345.02M	292.11M
Balance Sheet
Total Assets	13.66B	13.53B	13.04B	12.61B	12.32B
Cash, Cash Equivalents and Short-Term Investments	3.17B	3.15B	2.99B	3.25B	3.11B
Total Debt	2.88B	3.21B	3.64B	4.17B	4.34B
Total Liabilities	5.54B	5.93B	6.28B	6.49B	6.55B
Stockholders Equity	8.12B	7.60B	6.76B	6.12B	5.77B
Cash Flow
Free Cash Flow	404.05M	521.71M	371.53M	368.35M	612.49M
Operating Cash Flow	766.55M	825.52M	625.07M	518.79M	816.53M
Investing Cash Flow	-135.97M	-160.60M	-281.75M	-185.86M	-240.13M
Financing Cash Flow	-435.69M	-514.30M	-581.75M	-211.43M	239.24M

Showa Chemical Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 472.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4990, the sentiment is Positive. The current price of 472 is above the 20-day moving average (MA) of 470.55, above the 50-day MA of 467.18, and above the 200-day MA of 454.62, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 57.61 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4990.

Showa Chemical Industry Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
4624	77 Outperform	¥5.27B	11.62		1.36%	1.47%	17.40%
4976	75 Outperform	¥5.51B	7.84		2.31%	10.53%	13.88%
4119	73 Outperform	¥5.55B	1.10		2.83%	42.12%	578.59%
4990	71 Outperform	¥5.01B	12.23		1.27%	0.44%	-29.89%
Sector *	61 Neutral	$9.94B	5.82	1.58%	3.14%	3.01%	-39.25%
4100	55 Neutral	¥8.07B	―		―	20.71%	0.54%
4615	46 Neutral	¥4.53B	20.50		―	8.91%	-42.21%