ScoreWhy is Showa Sangyo Co., Ltd. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Operating profit has grown by an annual rate 4.78% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 7.32% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate 4.78% of over the last 5 years
3
The company has declared Negative results for the last 3 consecutive quarters
- ROCE(HY) Lowest at 6.86%
- INTEREST(Q) Highest at JPY 93 MM
- PRE-TAX PROFIT(Q) Fallen at -44.02%
4
With ROCE of 6.28%, it has a very attractive valuation with a 0.77 Enterprise value to Capital Employed
- 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 1.53%, its profits have fallen by -7.6%
- At the current price, the company has a high dividend yield of 0
5
Underperformed the market in the last 1 year
- The stock has generated a return of 1.53% 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 Sangyo Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Other Agricultural Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Agricultural Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Showa Sangyo Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Showa Sangyo Co., Ltd.
1.53%
-0.60
15.85%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.65%
EBIT Growth (5y)
4.78%
EBIT to Interest (avg)
34.40
Debt to EBITDA (avg)
2.49
Net Debt to Equity (avg)
0.31
Sales to Capital Employed (avg)
1.85
Tax Ratio
28.91%
Dividend Payout Ratio
28.09%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.15%
ROE (avg)
7.32%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
0.70
EV to EBIT
12.28
EV to EBITDA
6.36
EV to Capital Employed
0.77
EV to Sales
0.41
PEG Ratio
NA
Dividend Yield
0.02%
ROCE (Latest)
6.28%
ROE (Latest)
8.69%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
Bullish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -0.18% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 32.26 %
-19What is not working for the Company
ROCE(HY)
Lowest at 6.86%
INTEREST(Q)
Highest at JPY 93 MM
PRE-TAX PROFIT(Q)
Fallen at -44.02%
NET PROFIT(Q)
Fallen at -43.3%
Here's what is working for Showa Sangyo Co., Ltd.
Debt-Equity Ratio
Lowest at 32.26 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -0.18% (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 Sangyo Co., Ltd.
Interest
Highest at JPY 93 MM
in the last five periods and Increased by 8.14% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
Fallen at -44.02%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Fallen at -43.3%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
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