Showa Chemical Industry Co., Ltd. (4990) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Kurotani Corp.

Chugai Mining Co., Ltd.

Nihon Seiko Co., Ltd.

Nittetsu Mining Co., Ltd.

Asaka Riken Co., Ltd.

Yotai Refractories Co., Ltd.

Toho Zinc Co., Ltd.

Showa Chemical Industry Co., Ltd.

Toho Titanium Co., Ltd.

OSAKA Titanium Technologies Co., Ltd.

Nippon Denkai Ltd.

Why is Showa Chemical Industry Co., Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate 2.64% of over the last 5 years

INTEREST COVERAGE RATIO(Q) Lowest at 1,241.33
CASH AND EQV(HY) Lowest at JPY 5,757.66 MM
NET SALES(Q) Lowest at JPY 2,129.8 MM

Underperformed the market in the last 1 year

The stock has generated a return of 6.00% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 75.22%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Showa Chemical Industry Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Showa Chemical Industry Co., Ltd.

6.0%

0.42

24.75%

Japan Nikkei 225

75.22%

2.67

28.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.64%

EBIT Growth (5y)

2.64%

EBIT to Interest (avg)

12.67

Debt to EBITDA (avg)

0.85

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.84

Tax Ratio

30.51%

Dividend Payout Ratio

15.52%

Pledged Shares

Institutional Holding

ROCE (avg)

5.69%

ROE (avg)

6.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.74

EV to EBIT

12.84

EV to EBITDA

8.22

EV to Capital Employed

0.72

EV to Sales

0.67

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

5.64%

ROE (Latest)

7.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -7.36 %

DEBTORS TURNOVER RATIO(HY)

Highest at 3.9 times

-16What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,241.33

CASH AND EQV(HY)

Lowest at JPY 5,757.66 MM

NET SALES(Q)

Lowest at JPY 2,129.8 MM

OPERATING PROFIT(Q)

Lowest at JPY 89.72 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.21 %

PRE-TAX PROFIT(Q)

Lowest at JPY 93.84 MM

NET PROFIT(Q)

Lowest at JPY 66.03 MM

EPS(Q)

Lowest at JPY 6.16

Here's what is working for Showa Chemical Industry Co., Ltd.

Debt-Equity Ratio

Lowest at -7.36 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 3.9 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at JPY 78.91 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Showa Chemical Industry Co., Ltd.

Pre-Tax Profit

At JPY 93.84 MM has Fallen at -59.55%

over average net sales of the previous four periods of JPY 231.98 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 66.03 MM has Fallen at -59.99%

over average net sales of the previous four periods of JPY 165.02 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 1,241.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 2,129.8 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Net Sales

At JPY 2,129.8 MM has Fallen at -8.18%

over average net sales of the previous four periods of JPY 2,319.65 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 89.72 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.21 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 93.84 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 66.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 6.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Cash and Eqv

Lowest at JPY 5,757.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income

Highest at JPY 0.97 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income