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SWCC Showa Holdings Co., Ltd. (JP:5805)
:5805

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

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JP

SWCC Showa Holdings Co., Ltd.

(Frankfurt:5805)

Rating:73Outperform
Price Target:
¥8,979.00
▲(11.40%Upside)
SWCC Showa Holdings Co., Ltd. has a solid financial performance driven by strong revenue and profit growth, balanced by challenges in cash flow management. The technical indicators show bullish momentum, though near overbought levels. Valuation is moderate, with a P/E ratio indicating fair pricing. The absence of earnings call data and notable corporate events means these factors were not considered in the score.

SWCC Showa Holdings Co., Ltd. (5805) vs. iShares MSCI Japan ETF (EWJ)

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

Company DescriptionSWCC 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 MoneySWCC Showa Holdings Co., Ltd. generates revenue primarily through the sale of its electric wires and cables, which are essential components in numerous industries. The company sells its products to a diverse customer base including construction firms, telecommunications companies, and utility providers. Additionally, SWCC Showa benefits from its involvement in infrastructure projects where its high-performance cables are used. The company may also engage in partnerships and collaborations that leverage its expertise in cable technology to develop innovative solutions, further contributing to its income streams. Partnerships with other industry players and participation in large-scale infrastructure projects are significant factors that enhance the company's revenue.

SWCC Showa Holdings Co., Ltd. Financial Statement Overview

Summary
SWCC Showa Holdings Co., Ltd. demonstrates strong financial health with impressive revenue growth and robust profit margins. The balance sheet indicates moderate leverage and good return on equity, though recent capital expenditures have impacted cash flow.
Income Statement
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue233.63B237.86B213.90B209.11B199.19B161.70B
Gross Profit37.15B38.64B28.97B25.80B25.36B21.76B
EBITDA21.70B25.16B17.32B13.97B13.38B11.04B
Net Income10.26B11.40B8.84B9.41B9.35B4.97B
Balance Sheet
Total Assets159.23B197.71B161.58B156.65B147.36B129.46B
Cash, Cash Equivalents and Short-Term Investments9.39B19.45B7.34B4.04B3.36B4.17B
Total Debt28.80B54.16B29.78B40.52B38.35B36.76B
Total Liabilities77.44B112.08B84.46B88.26B88.43B81.29B
Stockholders Equity80.20B83.66B75.91B67.50B58.27B47.57B
Cash Flow
Free Cash Flow0.006.16B13.69B-767.00M-4.44B5.37B
Operating Cash Flow0.0013.11B17.74B4.16B428.00M8.88B
Investing Cash Flow0.0071.00M1.02B-3.55B-1.52B-3.36B
Financing Cash Flow0.00-1.45B-15.63B-85.00M64.00M-5.66B

SWCC Showa Holdings Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8060.00
Price Trends
50DMA
7034.20
Positive
100DMA
6572.20
Positive
200DMA
6604.35
Positive
Market Momentum
MACD
287.11
Negative
RSI
70.99
Negative
STOCH
52.34
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 8060 is above the 20-day moving average (MA) of 7422.50, above the 50-day MA of 7034.20, and above the 200-day MA of 6604.35, indicating a bullish trend. The MACD of 287.11 indicates Negative momentum. The RSI at 70.99 is Negative, neither overbought nor oversold. The STOCH value of 52.34 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
€232.74B20.2214.22%2.21%11.20%29.64%
61
Neutral
C$6.57B7.373.42%2.84%6.71%-16.74%
€37.31B18.578.40%1.96%
$6.29B10.5014.10%0.02%
$3.34B15.659.85%1.65%
$5.04B16.4513.09%1.97%
DEFJK
€12.58B22.7424.26%1.70%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:5805
SWCC Showa Holdings Co., Ltd.
8,060.00
3,399.58
72.95%
DE:MIE1
Mitsubishi Electric
18.09
2.54
16.33%
FELTF
Fuji Electric Co
45.43
-11.73
-20.52%
FUWAF
Furukawa Electric Co
49.45
23.88
93.39%
YASKF
Yaskawa Electric
19.20
-15.60
-44.83%
DE:FJK
Fujikura Ltd
45.90
26.46
136.11%

SWCC Showa Holdings Co., Ltd. Corporate Events

SWCC Showa Holdings Announces Treasury Share Disposal for Leadership Incentives
Jun 25, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 2025

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
May 13, 2025

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.

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.Date of analysis: Jul 09, 2025