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

• Market Cap: ¥5.03B
• Dividend Yield: 1.26%
• Average Volume (3M): 3.73K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.24
• Revenue Growth: 0.80%
• EPS Growth: 63.33%
• Country: JP
• Employees: 220
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 15.88
• Shares Outstanding: 11,979,000
• 10 Day Avg. Volume: 2,720
• 30 Day Avg. Volume: 3,726
• PEG Ratio: -0.38
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 11.60
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ¥537.00 ▲(11.88% Upside)

Showa Chemical Industry Co., Ltd. maintains a solid financial foundation with stable profitability and a strong equity position, which is the most significant factor in the overall score. Technical indicators suggest some short-term weakness, and valuation metrics indicate the stock is reasonably priced. The absence of earnings call data and corporate events does not affect the score.

Positive Factors

Strong Equity Position

A strong equity position with a favorable Debt-to-Equity ratio indicates financial stability and reduces financial risk, supporting long-term growth.

Stable Profitability

Stable profitability reflects the company's ability to maintain consistent earnings, which is crucial for sustaining operations and funding future investments.

Cash Flow Management

Efficient cash generation relative to earnings ensures the company can meet its obligations and invest in growth opportunities, enhancing long-term viability.

Negative Factors

Declining EBIT Margin

A declining EBIT margin suggests rising operational costs or pricing pressures, which could erode profitability if not addressed, impacting future earnings.

Fluctuating Free Cash Flow

Volatility in Free Cash Flow can lead to uncertainty in funding operations and investments, posing a risk to financial stability and strategic initiatives.

Revenue and Profit Margin Challenges

Recent dips in revenue and profit margins may indicate market or competitive pressures, potentially affecting the company's ability to sustain growth.

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

Company Description

Showa Chemical Industry Co., Ltd. (4990) is a leading manufacturer in the chemical industry, specializing in the production of a wide range of chemical products including synthetic resins, fine chemicals, and specialty chemicals. The company operates in various sectors such as automotive, electronics, pharmaceuticals, and agriculture, providing innovative solutions that cater to diverse industrial needs. With a strong commitment to research and development, Showa Chemical Industry focuses on sustainability and high-quality product offerings to meet the evolving demands of its global clientele.

How the Company Makes Money

Showa Chemical Industry Co., Ltd. generates revenue primarily through the sale of its chemical products across multiple sectors. The company has established key revenue streams from its core product lines, including synthetic resins and specialty chemicals, which are used in various applications such as automotive parts, electronics components, and agricultural solutions. Additionally, Showa Chemical Industry benefits from strategic partnerships with other firms in related industries, enhancing its market reach and facilitating the development of customized products. The company's focus on innovation and sustainability also allows it to command premium pricing for its advanced chemical solutions, contributing to its overall profitability.

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.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.31B	9.24B	9.20B	9.23B	7.78B	7.68B
Gross Profit	2.88B	2.81B	2.91B	2.95B	2.46B	2.47B
EBITDA	858.58M	877.73M	1.07B	1.13B	799.10M	773.49M
Net Income	465.13M	411.84M	584.40M	616.53M	345.02M	292.11M
Balance Sheet
Total Assets	13.82B	13.66B	13.53B	13.04B	12.61B	12.32B
Cash, Cash Equivalents and Short-Term Investments	2.85B	3.17B	3.15B	2.99B	3.25B	3.11B
Total Debt	2.66B	2.88B	3.21B	3.64B	4.17B	4.34B
Total Liabilities	5.58B	5.54B	5.93B	6.28B	6.49B	6.55B
Stockholders Equity	8.25B	8.12B	7.60B	6.76B	6.12B	5.77B
Cash Flow
Free Cash Flow	0.00	404.05M	521.71M	371.53M	368.35M	612.49M
Operating Cash Flow	0.00	766.55M	825.52M	625.07M	518.79M	816.53M
Investing Cash Flow	0.00	-135.97M	-160.60M	-281.75M	-185.86M	-240.13M
Financing Cash Flow	0.00	-435.69M	-514.30M	-581.75M	-211.43M	239.24M

Showa Chemical Industry Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 480.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 480 is above the 20-day moving average (MA) of 473.80, below the 50-day MA of 485.14, and above the 200-day MA of 471.50, indicating a neutral trend. The MACD of -2.85 indicates Negative momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 40.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
4976	72 Outperform	¥5.52B	7.85	―	2.37%	8.90%	5.69%
4990	68 Neutral	¥5.03B	8.89	―	1.26%	0.80%	63.33%
4624	66 Neutral	¥5.25B	11.57	―	1.39%	2.67%	37.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
4119	56 Neutral	¥5.34B	―	―	2.97%	37.67%	-117.29%
4100	46 Neutral	¥7.40B	-2.00	―	―	12.11%	46.97%
4615	44 Neutral	¥4.32B	-16.66	―	―	8.66%	-239.07%