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

• Market Cap: €232.74B
• Dividend Yield: 2.21%
• Average Volume (3M): 269.95K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.36
• Revenue Growth: 11.20%
• EPS Growth: 29.64%
• Country: JP
• Employees: 4,054
• Sector: Industrials
• Sector Strength: 89
• Industry: Electrical Equipment & Parts
• EPS (TTM): 123.50
• Shares Outstanding: 30,826,860
• 10 Day Avg. Volume: 306,830
• 30 Day Avg. Volume: 269,953
• PEG Ratio: 12.17
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -73.81
• 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: €8,356.28
• Price Target Upside: 3.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• 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. 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 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

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	233.63B	237.86B	213.90B	209.11B	199.19B	161.70B
Gross Profit	37.15B	38.64B	28.97B	25.80B	25.36B	21.76B
EBITDA	21.70B	25.16B	17.32B	13.97B	13.38B	11.04B
Net Income	10.26B	11.40B	8.84B	9.41B	9.35B	4.97B
Balance Sheet
Total Assets	159.23B	197.71B	161.58B	156.65B	147.36B	129.46B
Cash, Cash Equivalents and Short-Term Investments	9.39B	19.45B	7.34B	4.04B	3.36B	4.17B
Total Debt	28.80B	54.16B	29.78B	40.52B	38.35B	36.76B
Total Liabilities	77.44B	112.08B	84.46B	88.26B	88.43B	81.29B
Stockholders Equity	80.20B	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: 8060.00
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5805	73 Outperform	€232.74B	20.22	14.22%	2.21%	11.20%	29.64%
Sector *	61 Neutral	C$6.57B	7.37	3.42%	2.84%	6.71%	-16.74%
MIE1		€37.31B	18.57	8.40%	1.96%	―	―
FELTF		$6.29B	10.50	14.10%	0.02%	―	―
FUWAF		$3.34B	15.65	9.85%	1.65%	―	―
YASKF		$5.04B	16.45	13.09%	1.97%	―	―
FJK		€12.58B	22.74	24.26%	1.70%	―	―

SWCC Showa Holdings Co., Ltd. Corporate Events

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.