SHOWA SHINKU CO., LTD. (6384) 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

Daiki Axis Co., Ltd.

Yamada Corp.

Punch Industry Co., Ltd.

Kanefusa Corp.

SHOWA SHINKU CO., LTD.

Nakakita Seisakusho Co., Ltd.

Yuken Kogyo Co. Ltd.

Mutoh Holdings Co., Ltd.

A-One Seimitsu, Inc.

Howa Machinery, Ltd.

Nakanishi Manufacturing Co., Ltd.

Why is SHOWA SHINKU CO., LTD. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of -4.96% and Operating profit at -8.44% over the last 5 years

Positive results in Dec 25

NET PROFIT(9M) At JPY 177.48 MM has Grown at 232.67%
NET SALES(9M) At JPY 5,467.89 MM has Grown at 21.96%
ROCE(HY) Highest at 6.16%

With ROE of 4.73%, it has a very attractive valuation with a 0.76 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 26.20%, its profits have risen by 233.4% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

The stock has generated a return of 26.20% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to SHOWA SHINKU CO., LTD. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is SHOWA SHINKU CO., LTD. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

SHOWA SHINKU CO., LTD.

26.2%

0.98

24.48%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.96%

EBIT Growth (5y)

-8.44%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

0.69

Tax Ratio

32.81%

Dividend Payout Ratio

76.78%

Pledged Shares

Institutional Holding

ROCE (avg)

16.04%

ROE (avg)

6.81%

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

0.76

EV to EBIT

5.56

EV to EBITDA

4.51

EV to Capital Employed

0.61

EV to Sales

0.52

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

11.05%

ROE (Latest)

4.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

12What is working for the Company

NET PROFIT(9M)

At JPY 177.48 MM has Grown at 232.67%

NET SALES(9M)

At JPY 5,467.89 MM has Grown at 21.96%

ROCE(HY)

Highest at 6.16%

RAW MATERIAL COST(Y)

Fallen by -9.05% (YoY

CASH AND EQV(HY)

Highest at JPY 12,862.5 MM

DEBT-EQUITY RATIO (HY)

Lowest at -50.1 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.21 times

-8What is not working for the Company

NET SALES(Q)

At JPY 1,772.63 MM has Fallen at -26.03%

PRE-TAX PROFIT(Q)

At JPY 116 MM has Fallen at -52.85%

NET PROFIT(Q)

At JPY 85.6 MM has Fallen at -49.64%

Here's what is working for SHOWA SHINKU CO., LTD.

Cash and Eqv

Highest at JPY 12,862.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -50.1 %

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 5.21 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -9.05% (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

Depreciation

Highest at JPY 65.66 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 SHINKU CO., LTD.

Net Sales

At JPY 1,772.63 MM has Fallen at -26.03%

over average net sales of the previous four periods of JPY 2,396.26 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 116 MM has Fallen at -52.85%

over average net sales of the previous four periods of JPY 246 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 85.6 MM has Fallen at -49.64%

over average net sales of the previous four periods of JPY 169.96 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)