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
With a growth in Net Profit of 32.13%, the company declared Very Positive results in Dec 25
- DEBT-EQUITY RATIO (HY) Lowest at -4.68 %
- INTEREST COVERAGE RATIO(Q) Highest at 2,873.57
- RAW MATERIAL COST(Y) Fallen by -4.51% (YoY)
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 10.23%, 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 10.23% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
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.
10.23%
0.73
24.36%
Japan Nikkei 225
36.73%
1.30
28.24%
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
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -4.68 %
INTEREST COVERAGE RATIO(Q)
Highest at 2,873.57
RAW MATERIAL COST(Y)
Fallen by -4.51% (YoY
OPERATING PROFIT(Q)
Highest at JPY 228.79 MM
OPERATING PROFIT MARGIN(Q)
Highest at 9.95 %
PRE-TAX PROFIT(Q)
Highest at JPY 314.11 MM
NET PROFIT(Q)
Highest at JPY 223.42 MM
EPS(Q)
Highest at JPY 20.98
-4What is not working for the Company
INTEREST(9M)
At JPY 23.56 MM has Grown at 8.41%
CASH AND EQV(HY)
Lowest at JPY 5,463.53 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 5.49 times
Here's what is working for Showa Chemical Industry Co., Ltd.
Interest Coverage Ratio
Highest at 2,873.57
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 -4.68 % 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
Operating Profit
Highest at JPY 228.79 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 9.95 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 314.11 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 314.11 MM has Grown at 58.75%
over average net sales of the previous four periods of JPY 197.87 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 223.42 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 20.98
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Raw Material Cost
Fallen by -4.51% (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 23.56 MM has Grown at 8.41%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Cash and Eqv
Lowest at JPY 5,463.53 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Inventory Turnover Ratio
Lowest at 5.49 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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