Why is Showa System Engineering Corp. ?
1
Weak Long Term Fundamental Strength with a 7.32% CAGR growth in Net Sales over the last 5 years
2
Poor long term growth as Net Sales has grown by an annual rate of 7.32% over the last 5 years
3
Flat results in Jun 26
- INTEREST(HY) At JPY 0.05 MM has Grown at 68.75%
4
With ROE of 13.43%, it has a very attractive valuation with a 1.24 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 2.24%, its profits have risen by 19.4% ; the PEG ratio of the company is 0.5
5
Underperformed the market in the last 1 year
- The stock has generated a return of 2.24% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 43.52%
How 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.
2.24%
1.10
20.23%
Japan Nikkei 225
43.52%
1.48
29.43%
Quality 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)
1.56
Tax Ratio
28.71%
Dividend Payout Ratio
36.75%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
0
ROE (avg)
11.70%
Valuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
1.24
EV to EBIT
1.23
EV to EBITDA
1.20
EV to Capital Employed
-9.66
EV to Sales
0.15
PEG Ratio
0.48
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
13.43%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
Bearish
Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
7What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -2.56% (YoY
CASH AND EQV(HY)
Highest at JPY 12,460.03 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 9.83 times
OPERATING PROFIT(Q)
Highest at JPY 344.37 MM
PRE-TAX PROFIT(Q)
Highest at JPY 350.3 MM
NET PROFIT(Q)
Highest at JPY 238.54 MM
EPS(Q)
Highest at JPY 55.72
-8What is not working for the Company
INTEREST(HY)
At JPY 0.05 MM has Grown at 68.75%
Here's what is working for Showa System Engineering Corp.
Operating Profit
Highest at JPY 344.37 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 350.3 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 238.54 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 55.72
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 12,460.03 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio
Highest at 9.83 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -2.56% (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 68.75%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
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