Showa Chemical Industry Co., Ltd. (JP:4990)
:4990
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Showa Chemical Industry Co., Ltd.
(4990)
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Rating:65Neutral
Price Target:
¥529.00
▲(10.21% Upside)
Action:Reiterated
Date:05/17/26
The score is driven primarily by solid financial footing (notably improved leverage and generally positive cash generation) and attractive valuation (low P/E with a dividend). These positives are tempered by weakening profitability and a notable FY2026 revenue decline, alongside weak technical trend signals with the price below major moving averages.
Positive Factors
Improved leverage
Debt-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.
Negative Factors
Declining net profitability
Net 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage
Debt-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.
Read all positive factors
Showa Chemical Industry Co., Ltd. (4990) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.13B
Dividend Yield1.22%
Average Volume (3M)4.78K
Price to Earnings (P/E)8.3
Beta (1Y)0.30
Revenue Growth0.38%
EPS Growth51.72%
CountryJP
Employees220
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)43.63
Shares Outstanding11,979,000
10 Day Avg. Volume5,100
30 Day Avg. Volume4,780
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)0.59
Price to Sales (P/S)0.59
P/FCF Ratio12.62
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)N/A
Revenue Forecast (FY)N/A
Showa Chemical Industry Co., Ltd. Business Overview & Revenue Model
Company Description
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 l...
Showa Chemical Industry Co., Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.31B | 9.27B | 9.24B | 9.20B | 9.23B | 7.78B |
| Gross Profit | 2.88B | 2.91B | 2.81B | 2.91B | 2.95B | 2.46B |
| EBITDA | 858.58M | 724.63M | 877.73M | 1.07B | 1.13B | 799.10M |
| Net Income | 465.13M | 624.84M | 411.84M | 584.40M | 616.53M | 345.02M |
Balance Sheet | ||||||
| Total Assets | 13.82B | 14.57B | 13.66B | 13.53B | 13.04B | 12.61B |
| Cash, Cash Equivalents and Short-Term Investments | 2.85B | 2.97B | 3.17B | 3.15B | 2.99B | 3.25B |
| Total Debt | 2.66B | 2.28B | 2.88B | 3.21B | 3.64B | 4.17B |
| Total Liabilities | 5.58B | 5.18B | 5.54B | 5.93B | 6.28B | 6.49B |
| Stockholders Equity | 8.25B | 9.39B | 8.12B | 7.60B | 6.76B | 6.12B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 436.16M | 404.05M | 521.71M | 371.53M | 368.35M |
| Operating Cash Flow | 0.00 | 826.62M | 766.55M | 825.52M | 625.07M | 518.79M |
| Investing Cash Flow | 0.00 | -369.02M | -135.97M | -160.60M | -281.75M | -185.86M |
| Financing Cash Flow | 0.00 | -665.37M | -435.69M | -514.30M | -581.75M | -211.43M |
Showa Chemical Industry Co., Ltd. Technical Analysis
Negative
480.00
Price Trends
514.64
Negative
515.53
Negative
498.68
Negative
Market Momentum
-9.21
Positive
39.28
Neutral
34.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4990, the sentiment is Negative. The current price of 480 is below the 20-day moving average (MA) of 498.45, below the 50-day MA of 514.64, and below the 200-day MA of 498.68, indicating a bearish trend. The MACD of -9.21 indicates Positive momentum. The RSI at 39.28 is Neutral, neither overbought nor oversold. The STOCH value of 34.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4990.
Showa Chemical Industry Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ¥5.58B | 9.43 | ― | 1.39% | 3.01% | 37.62% | |
76 Outperform | ¥51.20B | 9.67 | ― | 5.04% | -6.31% | 6.66% | |
71 Outperform | ¥9.04B | 7.94 | ― | 2.84% | 11.35% | -76.94% | |
65 Neutral | ¥5.13B | 8.27 | ― | 1.22% | 0.38% | 51.72% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | ¥6.44B | 8.75 | ― | 3.50% | -1.92% | -2.68% | |
48 Neutral | ¥4.29B | -7.23 | ― | ― | 3.48% | -822.25% |
* Basic Materials Sector Average
JP:4990
Showa Chemical Industry Co., Ltd.
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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.