SWCC Showa Holdings Co., Ltd. (5805) AI Stock Analysis

• Market Cap: ¥461.01B
• Dividend Yield: 1.64%
• Average Volume (3M): 289.12K
• Price to Earnings (P/E): 27.9
• Beta (1Y): 1.47
• Revenue Growth: 7.08%
• EPS Growth: 65.71%
• Country: JP
• Employees: 4,054
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 184.11
• Shares Outstanding: 30,826,860
• 10 Day Avg. Volume: 349,460
• 30 Day Avg. Volume: 289,116
• PEG Ratio: 0.54
• Price to Book (P/B): 2.19
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 29.72
• 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: ¥11,900.00
• Price Target Upside: 8.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 563.58
• Revenue Forecast (FY): ¥269.93B

• Rating: 78 Outperform
• Price Target: ¥17,545.00 ▲(60.08% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by strong financial performance (growth and healthy margins with a solid balance sheet) and strong technical strength (clear uptrend and positive MACD). These positives are partially offset by weaker valuation (higher P/E and modest yield) and the recent decline in free cash flow.

Positive Factors

Revenue & Margin Strength

Sustained double-digit revenue growth with mid-single-digit operating margins indicates the company captures demand and preserves margin on core cable products. Over 2-6 months this supports reinvestment capacity and resilience to normal demand variability in infrastructure and industrial end markets.

Balance Sheet Resilience

Moderate leverage and a strong ROE imply the firm funds growth while generating acceptable returns on equity. A ~0.65 D/E and 42% equity ratio provide financial flexibility to endure project timing shifts and finance capex without immediate solvency pressure over the medium term.

Operating Cash Generation

Operating cash flow exceeding net income shows core operations convert earnings into cash, supporting working capital, servicing debt and funding investments. This durable cash generation helps sustain operations and strategic capex even if free cash flow temporarily dips.

Negative Factors

Free Cash Flow Decline

A 55% drop in FCF from higher capex materially reduces distributable cash and financial flexibility. If elevated investment levels persist, the company may face constrained dividends, buybacks or incremental debt needs, affecting capital allocation over several quarters.

Input Cost Sensitivity

Wire and cable production is metal-intensive, leaving margins exposed to commodity cycles. Persistent raw material inflation or inability to pass costs through to industrial and infrastructure customers could compress margins and cash conversion across multiple quarters.

Leverage & Capital Allocation Risk

Moderate D/E combined with recent heavy capex and weaker FCF raises the risk that leverage could limit strategic flexibility. Continued elevated investment without commensurate cash recovery could necessitate slower deleveraging or higher reliance on external financing over the medium term.

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

Company Description

SWCC Showa Holdings Co., Ltd., together with its subsidiaries, operates in the energy systems, communication systems, and device businesses in Japan and internationally. The company's Electrical Wire and Wire Rod Operations segment offers bare wires, rubber/plastic insulated wires, power distribution equipment, bus cables, and overhead cables. Its Energy System Operations segment is involved in the provision of electric power cables, power cable accessories, and power cable and communication system installation works. The company's Magnet Wire Operations segment provides magnet wires. Its Communication System Operations segment offers optical fiber cables, communication cables and accessories, optical peripheral devices/connector assemblies, and network solutions. The company's Device Operations segment provides wire harnesses, devices for seismic isolation, vibration dampers/isolators, and devices for photocopiers and printing machines. Its Others segment engages in the distribution, superconducting wire operation, and other activities. The company also produces and sells rollers for information processing equipment, seismic isolators and vibration dampers, vibration isolation rubber, etc., as well as fire-proof and coated wires; and sells vibration-control equipment, air spring vibration isolators, optical instrumentation units, precision surface plates, and electrical and electronic equipment. In addition, it is involved in the development and maintenance of systems; security and network development; design/execution/supervision of electric works; disassembly of electric wires and cables; transportation activities through motor trucks; management of warehouses; shipment and delivery operations; production and sale of copier components and oxygen-free copper products; production and sale of drums for electric wires; and provision of electricity distribution equipment. SWCC Showa Holdings Co., Ltd. was founded in 1936 and is headquartered in Kawasaki, Japan.

How the Company Makes Money

SWCC Showa Holdings generates revenue through the production and sale of various metal products, particularly copper and aluminum materials, which are essential in the electronics and telecommunications sectors. Key revenue streams include the sale of optical fibers and related components that are critical for high-speed internet and telecommunications networks. Additionally, the company benefits from long-term contracts with major corporations in the electronics industry, ensuring a steady demand for their products. Strategic partnerships with technology firms and investments in research and development further enhance their product offerings and market competitiveness, contributing significantly to their earnings.

SWCC Showa Holdings Co., Ltd. Financial Statement Overview

Summary

Strong income statement performance (revenue up 11.2%, solid profitability with 8.3% EBIT margin and 10.6% EBITDA margin) and a stable balance sheet (D/E 0.65, ROE 13.6%, equity ratio 42.3%) are tempered by a meaningful free cash flow decline (-55%) driven by higher capex.

Income Statement

SWCC Showa Holdings Co., Ltd. has shown strong revenue growth, with a 11.2% increase in the latest year. The Gross Profit Margin is at 16.2%, and the Net Profit Margin is healthy at 4.8%. The EBIT and EBITDA margins are robust at 8.3% and 10.6%, respectively, indicating strong operational efficiency. Overall, the company demonstrates solid profitability and growth.

Balance Sheet

The company's balance sheet reflects a Debt-to-Equity Ratio of 0.65, indicating moderate leverage. The Return on Equity (ROE) is 13.6%, showcasing good profitability relative to shareholders' equity. The Equity Ratio stands at 42.3%, suggesting a stable financial structure with a significant proportion of assets financed by equity. The balance sheet is strong but with room for improvement in reducing debt.

Cash Flow

SWCC Showa Holdings Co., Ltd. has a Free Cash Flow Growth Rate of -55%, indicating a significant decline due to increased capital expenditures. The Operating Cash Flow to Net Income Ratio is 1.15, showing good cash generation relative to net income. The Free Cash Flow to Net Income Ratio is 0.54, implying reasonable cash flow conversion. Despite the recent dip in free cash flow, the company maintains healthy cash flow from operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	243.08B	237.86B	213.90B	209.11B	199.19B	161.70B
Gross Profit	40.25B	38.64B	28.97B	25.80B	25.36B	21.76B
EBITDA	26.20B	25.16B	17.32B	16.77B	15.02B	10.31B
Net Income	11.50B	11.40B	8.84B	9.41B	9.35B	4.97B
Balance Sheet
Total Assets	186.55B	197.71B	161.58B	156.65B	147.36B	129.46B
Cash, Cash Equivalents and Short-Term Investments	12.33B	19.45B	7.34B	4.04B	3.36B	4.17B
Total Debt	51.18B	54.16B	29.78B	40.52B	38.35B	36.76B
Total Liabilities	101.58B	112.08B	84.46B	88.26B	88.43B	81.29B
Stockholders Equity	83.31B	83.66B	75.91B	67.50B	58.27B	47.57B
Cash Flow
Free Cash Flow	0.00	6.16B	13.69B	-767.00M	-4.44B	5.37B
Operating Cash Flow	0.00	13.11B	17.74B	4.16B	428.00M	8.88B
Investing Cash Flow	0.00	71.00M	1.02B	-3.55B	-1.52B	-3.36B
Financing Cash Flow	0.00	-1.45B	-15.63B	-85.00M	64.00M	-5.66B

SWCC Showa Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10960.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5805, the sentiment is Positive. The current price of 10960 is below the 20-day moving average (MA) of 13879.00, below the 50-day MA of 12191.60, and above the 200-day MA of 9197.60, indicating a bullish trend. The MACD of 995.37 indicates Negative momentum. The RSI at 75.03 is Negative, neither overbought nor oversold. The STOCH value of 74.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:5805.

SWCC Showa Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5805	78 Outperform	¥461.01B	27.87	18.26%	1.64%	7.08%	65.71%
6506	72 Outperform	¥1.44T	38.61	13.26%	1.49%	-2.18%	30.16%
5803	72 Outperform	¥7.38T	51.29	32.32%	0.91%	27.53%	137.34%
6503	71 Outperform	¥12.59T	33.01	10.23%	1.19%	4.62%	40.65%
6504	64 Neutral	¥1.99T	23.82	12.05%	1.50%	5.44%	-5.19%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5801	61 Neutral	$1.98T	37.68	10.06%	1.21%	10.52%	60.75%

SWCC Showa Holdings Co., Ltd. Corporate Events

SWCC Reshapes Executive and Fellow Ranks to Drive Strategy, Manufacturing and Digital Reform

SWCC Corporation announced a broad reshuffle of its leadership, appointing new executive officers to oversee management strategy, business development, investor relations and public relations, and TOTOKU INC.’s businesses. The company also redefined responsibilities for senior management roles, including its chief business officer, chief financial officer, chief technology officer, and chief digital officer, to sharpen focus on production sites, logistics reform, digital transformation and technology planning.

Several executive officers will retire and transition to positions at key group companies such as TOTOKU INC. and Logis-Works CO., LTD., signaling a consolidation of expertise within the wider group. SWCC is also adjusting its fellow structure, appointing a new senior fellow to lead production engineering, the 2035 Factory Project and manufacturing human resource development, while other fellows move into advisory roles, underscoring a strategic emphasis on long-term manufacturing innovation and governance.

The most recent analyst rating on (JP:5805) stock is a Buy with a Yen17933.00 price target. To see the full list of analyst forecasts on SWCC Showa Holdings Co., Ltd. stock, see the JP:5805 Stock Forecast page.

SWCC Unveils 2030 Growth Plan and Long-Term Vision to 2036

SWCC Corporation’s SWCC Group, which has been executing its “Change & Growth SWCC 2026” medium-term plan, reports it is on track to achieve its key fiscal 2026 KPIs a year ahead of schedule, underscoring solid operational momentum. Building on this performance, the company has unveiled a new medium-term management plan, “Transformation for Growth SWCC 2030,” with fiscal 2030 as the final year, aimed at accelerating growth and strengthening global competitiveness.

Alongside the new plan, SWCC announced “SWCC VISION 2036,” a long-term vision leading up to the Group’s 100th anniversary, positioning the company to strategically navigate a shifting business environment. By emphasizing advanced ROIC-focused management and enhancing its cash-generation strength, the Group aims to evolve into a more resilient global enterprise, with potential benefits for shareholders and other stakeholders as it executes its transformation agenda.

The most recent analyst rating on (JP:5805) stock is a Buy with a Yen17933.00 price target. To see the full list of analyst forecasts on SWCC Showa Holdings Co., Ltd. stock, see the JP:5805 Stock Forecast page.

SWCC Delivers Strong Nine-Month Earnings, Affirms Full-Year Outlook and Dividend Plan

SWCC Corporation reported strong results for the nine months to Dec. 31, 2025, with net sales up 13.4% to ¥202.1 billion and operating profit up 17.4% to ¥19.6 billion, while ordinary profit surged and profit attributable to owners of parent climbed 64.6%. Earnings per share rose to ¥430.99 and the equity-to-asset ratio improved as net assets increased, underscoring a healthier balance sheet.

The company kept its full-year forecast unchanged, projecting ¥270 billion in net sales and a 40.3% rise in profit attributable to owners of parent, alongside basic EPS of ¥540.44. Dividend guidance also remains intact, with a planned total annual dividend of ¥200 per share for the fiscal year ending March 31, 2026, signaling continued shareholder returns backed by solid operating momentum.

The most recent analyst rating on (JP:5805) stock is a Hold with a Yen13786.00 price target. To see the full list of analyst forecasts on SWCC Showa Holdings Co., Ltd. stock, see the JP:5805 Stock Forecast page.