Showa Holdings Co., Ltd. (5103) AI Stock Analysis

• Market Cap: ¥3.56B
• Dividend Yield: N/A
• Average Volume (3M): 208.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• Revenue Growth: -3.45%
• EPS Growth: 56.08%
• Country: JP
• Employees: 323
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -2.79
• Shares Outstanding: 76,293,430
• 10 Day Avg. Volume: 421,460
• 30 Day Avg. Volume: 208,836
• PEG Ratio: 0.27
• Price to Book (P/B): 1.92
• Price to Sales (P/S): 0.39
• P/FCF Ratio: -8.98
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ¥59.00 ▲(18.00% Upside)

The overall stock score is primarily influenced by significant financial challenges, including consistent losses and liquidity issues, which are the most impactful factors. Technical analysis provides a somewhat positive outlook with bullish momentum, but poor valuation metrics, including a negative P/E ratio, weigh heavily on the score. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Diversified Business Model

The company's diversification across rubber products, financial services, and sports entertainment provides multiple revenue streams, reducing reliance on a single market and enhancing resilience against sector-specific downturns.

Steady Cash Position

A steady cash position provides a buffer against financial volatility, allowing the company to meet short-term obligations and invest in growth opportunities without immediate liquidity concerns.

Revenue from Core Segments

The core segment's alignment with automotive and industrial demand supports stable revenue generation, leveraging established industry relationships and market needs for sustained income.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share or competitive positioning, potentially impacting long-term growth prospects and necessitating strategic adjustments.

High Leverage

High leverage increases financial risk, limiting flexibility in capital allocation and potentially leading to higher interest costs, affecting profitability and strategic initiatives.

Negative Free Cash Flow

Negative free cash flow highlights operational inefficiencies and liquidity challenges, restricting the company's ability to invest in growth, pay down debt, or return capital to shareholders.

Showa Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Showa Holdings Co., Ltd., through its subsidiaries, engages in the digital finance business in Japan and internationally. It develops financial technology solutions. The company also manufactures and sells Chinese side dishes, as well as rice cakes, including daifuku mochi and Japanese sweets comprising dumplings; rubber products, and food and medical supplies; kneaded rubber; and engages in the research and development, production technology, general affairs, human resources, accounting, information systems, business strategy, etc. activities. In addition, it is involved in the manufacturing and sale of rubber lining coating, molding, cleaning equipment, and food packing products; soft tennis balls and sponge balls; purchases/sells tennis wear and various sporting goods; construction of sports facilities; operation of tennis clubs; investment business; and planning, designing, production, and editing of content, such as music, magazines, books, trading card games, and websites. The company was incorporated in 1937 and is headquartered in Kashiwa, Japan. Showa Holdings Co., Ltd. is a subsidiary of A.P.F.Group Co., Ltd.

How the Company Makes Money

Showa Holdings Co., Ltd. generates revenue through multiple streams that reflect its diversified business model. The core revenue stream comes from the manufacturing and sale of rubber and plastic products, which are supplied to automotive and industrial sectors. This segment benefits from ongoing demands in these industries and drives a significant portion of the company's income. Another revenue stream is its financial services division, which includes lending and investment services, generating income through interest, fees, and investment returns. Furthermore, Showa Holdings earns from its sports and entertainment segment by managing facilities and events, tapping into consumer spending on leisure activities. The company's financial performance is supported by strategic partnerships and investments that enhance its market position across these sectors.

Showa Holdings Co., Ltd. Financial Statement Overview

Summary

Showa Holdings Co., Ltd. is facing significant financial challenges, including declining revenues, consistent losses, and high leverage. The income statement reflects negative net income and operational inefficiencies. The balance sheet indicates high financial risk with an increasing debt-to-equity ratio, although a steady cash position provides some financial buffer. Cash flow issues are evident with negative free cash flow, highlighting liquidity concerns.

Income Statement

The income statement reveals a decline in revenue over the years, with a negative net income indicating persistent losses. Gross profit margins have decreased significantly from their peaks, highlighting cost management challenges. The EBIT and EBITDA margins are also negative, reflecting ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a declining equity base and an increasing debt-to-equity ratio, pointing to higher leverage and financial risk. The equity ratio is low, which may limit the company's financial flexibility. Despite this, the company maintains a steady cash position, which is a positive aspect.

Cash Flow

Cash flow analysis indicates negative free cash flow in recent years, driven by insufficient operating cash flow to cover capital expenditures. The operating cash flow to net income ratio is negative, reflecting cash outflows and highlighting liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.56B	8.62B	8.87B	7.58B	9.79B	13.66B
Gross Profit	2.34B	2.40B	2.40B	2.03B	3.98B	7.48B
EBITDA	35.87M	-173.21M	-714.33M	-134.89M	-1.49B	-2.11B
Net Income	-263.22M	-203.71M	-531.55M	-338.83M	-917.33M	-1.23B
Balance Sheet
Total Assets	6.09B	6.53B	6.83B	6.76B	6.18B	39.84B
Cash, Cash Equivalents and Short-Term Investments	814.29M	640.72M	1.05B	508.86M	351.04M	11.64B
Total Debt	562.42M	882.39M	922.33M	843.11M	895.35M	15.91B
Total Liabilities	3.06B	3.42B	3.92B	3.84B	3.36B	25.76B
Stockholders Equity	1.75B	1.74B	1.65B	2.01B	2.13B	4.02B
Cash Flow
Free Cash Flow	0.00	-371.58M	-200.84M	-25.23M	708.21M	7.22B
Operating Cash Flow	0.00	-324.46M	-75.08M	9.28M	826.86M	7.41B
Investing Cash Flow	0.00	-58.24M	-180.00M	30.65M	432.94M	-357.17M
Financing Cash Flow	0.00	-32.86M	784.60M	-111.24M	-1.31B	-6.76B

Showa Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 50.00
• 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:5103, the sentiment is Negative. The current price of 50 is above the 20-day moving average (MA) of 48.05, above the 50-day MA of 48.76, and above the 200-day MA of 47.82, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:5103.

Showa Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5122	71 Outperform	¥87.43B	17.94	―	2.36%	-1.95%	-1.37%
4092	66 Neutral	¥25.66B	10.19	―	4.13%	-3.41%	-12.83%
5199	64 Neutral	¥2.56B	11.59	―	4.00%	-4.09%	59.57%
4098	63 Neutral	¥2.48B	18.18	―	1.19%	-1.01%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
5103	52 Neutral	¥3.56B	-13.49	―	―	-3.45%	56.08%