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

• Market Cap: ¥245.87B
• Dividend Yield: 1.65%
• Average Volume (3M): 348.35K
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.28
• Revenue Growth: 9.28%
• EPS Growth: 8.86%
• Country: JP
• Employees: 4,054
• Sector: Industrials
• Sector Strength: 79
• Industry: Electrical Equipment & Parts
• EPS (TTM): 102.32
• Shares Outstanding: 30,826,860
• 10 Day Avg. Volume: 322,650
• 30 Day Avg. Volume: 348,346
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥8,719.93
• Price Target Upside: 5.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥8,720.00 ▲(5.83% Upside)

SWCC Showa Holdings Co., Ltd. has a solid financial foundation with strong revenue and profit growth, but faces challenges in cash flow management. The technical indicators suggest a lack of strong momentum, with the stock approaching oversold conditions. Valuation metrics indicate the stock is fairly valued, offering moderate income potential. Overall, the company is well-positioned but needs to address cash flow issues to enhance its financial standing.

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

Company Description

SWCC Showa Holdings Co., Ltd. is a Japan-based company primarily engaged in the manufacturing and sale of electric wires and cables, as well as other related components. The company operates through several segments, including Electric Wire & Cable, Metal Products, and Others. The Electric Wire & Cable segment produces a wide range of products such as power cables, communication cables, and electric wires for general and industrial use. The Metal Products segment is involved in the manufacturing and sale of magnet wires and other metal products. The company aims to provide high-quality products and solutions to various industries, including construction, automotive, and industrial sectors.

How the Company Makes Money

SWCC Showa Holdings Co., Ltd. generates revenue through the production and sale of its diverse range of electric wires, cables, and metal products. The Electric Wire & Cable segment is the primary revenue driver, catering to the needs of the energy, construction, and communication sectors with products like power cables and communication cables. Additionally, the Metal Products segment contributes to the company's earnings through the sale of specialized magnet wires used in automotive and industrial applications. The company also seeks to enhance its profitability through strategic partnerships and collaborations that allow it to expand its market reach and leverage technological advancements. By focusing on quality and innovation, SWCC Showa Holdings aims to meet the evolving demands of its clients and sustain its competitive edge in the industry.

SWCC Showa Holdings Co., Ltd. Financial Statement Overview

Summary

SWCC Showa Holdings Co., Ltd. demonstrates strong financial health with impressive revenue and profit growth. The company maintains a stable balance sheet with moderate leverage and good return on equity. However, recent challenges in cash flow management, primarily due to increased capital expenditures, need attention.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	237.86B	237.86B	213.90B	209.11B	199.19B	161.70B
Gross Profit	38.64B	38.64B	28.97B	25.80B	25.36B	21.76B
EBITDA	23.93B	25.16B	17.32B	16.77B	15.02B	10.31B
Net Income	11.40B	11.40B	8.84B	9.41B	9.35B	4.97B
Balance Sheet
Total Assets	197.71B	197.71B	161.58B	156.65B	147.36B	129.46B
Cash, Cash Equivalents and Short-Term Investments	19.45B	19.45B	7.34B	4.04B	3.36B	4.17B
Total Debt	54.16B	54.16B	29.78B	40.52B	38.35B	36.76B
Total Liabilities	112.08B	112.08B	84.46B	88.26B	88.43B	81.29B
Stockholders Equity	83.66B	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: 8240.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 8240 is below the 20-day moving average (MA) of 8369.00, above the 50-day MA of 8184.20, and above the 200-day MA of 7149.41, indicating a neutral trend. The MACD of -6.76 indicates Positive momentum. The RSI at 49.33 is Neutral, neither overbought nor oversold. The STOCH value of 82.72 is Negative, 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	66 Neutral	¥245.87B	21.19	15.00%	1.65%	9.28%	8.86%
Sector *	64 Neutral	$10.86B	16.10	7.81%	1.99%	2.67%	-15.47%
MIE1	―	€43.32B	18.83	9.91%	―	―	―
FELTF	―	$9.18B	12.46	14.11%	2.01%	―	―
FUWAF	―	$4.48B	19.65	10.54%	0.88%	―	―
YASKF	―	$5.26B	15.10	13.09%	2.18%	―	―
FJK	―	€20.49B	31.92	27.92%	―	―	―

SWCC Showa Holdings Co., Ltd. Corporate Events

SWCC Showa Holdings Reports Increased Sales and Positive Outlook

SWCC Showa Holdings Co., Ltd. reported a 9.2% increase in net sales for the three months ending June 30, 2025, compared to the same period last year. Despite a decline in comprehensive income, the company forecasts a positive outlook for the fiscal year ending March 31, 2026, with expected growth in net sales and profits, indicating a strong market position and potential benefits for stakeholders.

The most recent analyst rating on (JP:5805) stock is a Buy with a Yen9600.00 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 Corporation Announces Executive Officer Role Changes

SWCC Corporation, a company listed on the TSE Prime Market, announced changes in the delegated duties of its executive officers, effective August 1, 2025. The changes involve Kiyoshi Otake, who will focus on logistics reform and act as a special assistant to the CEO, and Yoichi Kitagawa, who will concentrate on business strategy and material procurement. These adjustments are part of the company’s ongoing efforts to streamline operations and enhance strategic focus.

The most recent analyst rating on (JP:5805) stock is a Buy with a Yen9600.00 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 Showa Holdings Announces Treasury Share Disposal for Leadership Incentives

SWCC Showa Holdings Co., Ltd. announced the disposal of 23,313 treasury shares as stock-based remuneration for its directors and executive officers. This move is part of a strategic plan to incentivize leadership for long-term corporate value enhancement and shareholder value improvement, reflecting the company’s commitment to aligning management interests with those of its stakeholders.

The most recent analyst rating on (JP:5805) stock is a Buy with a Yen8400.00 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 Corporation Considers Reducing Minimum Investment Unit

SWCC Corporation has announced its consideration of reducing the minimum investment unit for its shares, a move aimed at invigorating the stock market by attracting a broader range of investors and enhancing liquidity. While the company acknowledges the potential benefits, it has not yet decided on implementing specific measures such as stock splits, and will continue to evaluate market conditions and shareholder composition before making any decisions.

The most recent analyst rating on (JP:5805) stock is a Buy with a Yen9600.00 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 Corporation Increases Year-End Dividend Forecast

SWCC Corporation has announced a revision to its year-end dividend forecast for the fiscal year ended March 31, 2025, increasing the dividend per share from the previously forecasted 70 yen to 86 yen. This decision reflects the company’s strong financial performance and commitment to providing stable returns to shareholders, highlighting its strategic focus on growth and investment.

The most recent analyst rating on (JP:5805) stock is a Buy with a Yen9600.00 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 Showa Holdings Embarks on New Growth Phase with Strategic Initiatives

SWCC Showa Holdings Co., Ltd. is entering a new growth phase under the leadership of CEO Tetsuo Komata, building on the management reforms initiated by former CEO Takayo Hasegawa. The company plans to continue its focus on ROIC-based management and structural reforms while formulating a new medium-term management plan aimed at achieving ‘SWCC VISION 2030’. Key initiatives include strengthening its energy and infrastructure business, establishing a new communication and components business segment, and accelerating digital transformation through its IT strategy.

The most recent analyst rating on (JP:5805) stock is a Buy with a Yen9600.00 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 Showa Holdings Reports Strong Fiscal Year 2025 Results

SWCC Showa Holdings Co., Ltd. reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 11.2% and operating profit surging by 63.2%. Despite a decline in ordinary profit, the company saw a notable increase in profit attributable to owners of the parent, reflecting strong operational performance. The company’s financial position improved with higher total assets and net assets, and it announced an increase in annual dividends per share, indicating a positive outlook for stakeholders.

The most recent analyst rating on (JP:5805) stock is a Buy with a Yen9600.00 price target. To see the full list of analyst forecasts on SWCC Showa Holdings Co., Ltd. stock, see the JP:5805 Stock Forecast page.