ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Showa Chemical Industry Co., Ltd. ?
1
Poor long term growth as Operating profit has grown by an annual rate -3.45% of over the last 5 years
2
Flat results in Jun 25
- INTEREST(HY) At JPY 15.84 MM has Grown at 14.78%
- INVENTORY TURNOVER RATIO(HY) Lowest at 5.74%
3
With ROE of 5.07%, it has a expensive valuation with a 0.69 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 10.78%, its profits have fallen by -30%
- At the current price, the company has a high dividend yield of 0.1
4
Underperformed the market in the last 1 year
- The stock has generated a return of 10.78% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Showa Chemical Industry Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Minerals & Mining should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Showa Chemical Industry Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Showa Chemical Industry Co., Ltd.
10.78%
0.36
21.46%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.40%
EBIT Growth (5y)
-3.45%
EBIT to Interest (avg)
12.67
Debt to EBITDA (avg)
0.85
Net Debt to Equity (avg)
-0.04
Sales to Capital Employed (avg)
0.85
Tax Ratio
30.51%
Dividend Payout Ratio
15.52%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.69%
ROE (avg)
6.66%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
0.69
EV to EBIT
15.26
EV to EBITDA
8.79
EV to Capital Employed
0.67
EV to Sales
0.57
PEG Ratio
NA
Dividend Yield
0.11%
ROCE (Latest)
4.42%
ROE (Latest)
5.07%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -2.34 %
INTEREST COVERAGE RATIO(Q)
Highest at 2,779.73
RAW MATERIAL COST(Y)
Fallen by -1.51% (YoY
NET SALES(Q)
Highest at JPY 2,497.23 MM
OPERATING PROFIT(Q)
Highest at JPY 211.09 MM
OPERATING PROFIT MARGIN(Q)
Highest at 8.45 %
PRE-TAX PROFIT(Q)
Highest at JPY 239.49 MM
NET PROFIT(Q)
Highest at JPY 166.74 MM
EPS(Q)
Highest at JPY 15.65
-7What is not working for the Company
INTEREST(HY)
At JPY 15.84 MM has Grown at 14.78%
INVENTORY TURNOVER RATIO(HY)
Lowest at 5.74%
Here's what is working for Showa Chemical Industry Co., Ltd.
Interest Coverage Ratio
Highest at 2,779.73
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Debt-Equity Ratio
Lowest at -2.34 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Net Sales
Highest at JPY 2,497.23 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 211.09 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 8.45 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 239.49 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 239.49 MM has Grown at 59.65%
over average net sales of the previous four periods of JPY 150 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 166.74 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
At JPY 166.74 MM has Grown at 59.84%
over average net sales of the previous four periods of JPY 104.32 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 15.65
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -1.51% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Showa Chemical Industry Co., Ltd.
Interest
At JPY 15.84 MM has Grown at 14.78%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 5.74%
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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