Why is SHOWA SHINKU CO., LTD. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Positive results in Jun 25
- NET SALES(HY) At JPY 5,327.28 MM has Grown at 40.92%
- NET PROFIT(HY) At JPY 453.43 MM has Grown at 160.4%
- ROCE(HY) Highest at 5.6%
3
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 6.62%, its profits have risen by 233.4% ; the PEG ratio of the company is 0.1
How much should you buy?
- 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.
6.62%
0.08
20.59%
Japan Nikkei 225
28.54%
1.11
25.75%
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)
0
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
0
Institutional Holding
0
ROCE (avg)
16.04%
ROE (avg)
6.81%
Valuation Key Factors 
Factor
Value
P/E Ratio
16
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
NA
ROCE (Latest)
11.05%
ROE (Latest)
4.73%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
20What is working for the Company
NET SALES(HY)
At JPY 5,327.28 MM has Grown at 40.92%
NET PROFIT(HY)
At JPY 453.43 MM has Grown at 160.4%
ROCE(HY)
Highest at 5.6%
INVENTORY TURNOVER RATIO(HY)
Highest at 2.31%
-14What is not working for the Company
INTEREST(9M)
At JPY 1.25 MM has Grown at 20.21%
NET SALES(Q)
At JPY 1,330.52 MM has Fallen at -37.24%
PRE-TAX PROFIT(Q)
At JPY -44.16 MM has Fallen at -121.64%
NET PROFIT(Q)
At JPY -41.03 MM has Fallen at -129.96%
RAW MATERIAL COST(Y)
Grown by 15.54% (YoY
Here's what is working for SHOWA SHINKU CO., LTD.
Inventory Turnover Ratio
Highest at 2.31%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Depreciation
Highest at JPY 54 MM
in the last five periodsMOJO 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.
Interest
At JPY 1.25 MM has Grown at 20.21%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
At JPY 1,330.52 MM has Fallen at -37.24%
over average net sales of the previous four periods of JPY 2,120.03 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (JPY MM)
Pre-Tax Profit
At JPY -44.16 MM has Fallen at -121.64%
over average net sales of the previous four periods of JPY 204.08 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY -41.03 MM has Fallen at -129.96%
over average net sales of the previous four periods of JPY 136.95 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Raw Material Cost
Grown by 15.54% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






