ScoreWhy is Showa System Engineering Corp. ?
1
High Management Efficiency with a high ROE of 11.70%
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Net Sales has grown by an annual rate of 7.32% over the last 5 years
4
Negative results in Dec 25
- INTEREST(HY) At JPY 0.05 MM has Grown at 62.5%
- DEBT-EQUITY RATIO (HY) Highest at -102.25 %
- INTEREST COVERAGE RATIO(Q) Lowest at 871,742.86
5
With ROE of 13.43%, it has a very attractive valuation with a 1.35 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 risen by 19.4% ; the PEG ratio of the company is 0.5
6
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 70.84%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Showa System Engineering Corp. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Showa System Engineering Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Showa System Engineering Corp.
-100.0%
0.90
19.88%
Japan Nikkei 225
70.84%
2.78
25.51%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
7.32%
EBIT Growth (5y)
15.54%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-1.08
Sales to Capital Employed (avg)
1.57
Tax Ratio
25.81%
Dividend Payout Ratio
33.31%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
11.70%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.35
EV to EBIT
1.84
EV to EBITDA
1.80
EV to Capital Employed
-14.43
EV to Sales
0.22
PEG Ratio
0.52
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
13.43%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -2.09% (YoY
CASH AND EQV(HY)
Highest at JPY 11,718.64 MM
NET SALES(Q)
Highest at JPY 2,248.64 MM
-15What is not working for the Company
INTEREST(HY)
At JPY 0.05 MM has Grown at 62.5%
DEBT-EQUITY RATIO
(HY)
Highest at -102.25 %
INTEREST COVERAGE RATIO(Q)
Lowest at 871,742.86
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.39 times
Here's what is working for Showa System Engineering Corp.
Net Sales
Highest at JPY 2,248.64 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Cash and Eqv
Highest at JPY 11,718.64 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -2.09% (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 System Engineering Corp.
Interest
At JPY 0.05 MM has Grown at 62.5%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 871,742.86
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Debt-Equity Ratio
Highest at -102.25 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 8.39 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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