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Showa Sangyo Co., Ltd. (2004) AI Stock Analysis
Showa Sangyo Co., Ltd.
(TSE/TYO:2004)
Showa Sangyo scores a moderate 63, reflecting a balance of strengths and weaknesses. The most favorable factor is its undemanding valuation at 11x P/E with a 3.2% dividend yield, providing income appeal and downside protection. Technical indicators are supportive, with the stock trading above all major moving averages and momentum indicators in healthy ranges. However, financial performance is the primary constraint — thin net margins (~3.5%), declining earnings trajectory into FY2026, and volatile cash flow generation (free cash flow converting less than half of net income) limit enthusiasm. The improving balance sheet with consistent deleveraging is a positive, but insufficient to offset the earnings and cash flow concerns. The stock is best characterized as a defensive, income-oriented holding with limited growth catalysts.
Showa Sangyo Co., Ltd. (2004) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 133.89B
- Dividend Yield
- 3.28%
- Average Volume (3M)
- 72.57K
- Price to Earnings (P/E)
- 12.6
- Beta (1Y)
- 0.26
- Revenue Growth
- 3.00%
- EPS Growth
- 15.52%
- Country
- Japan
- Employees
- 2,927
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Packaged Foods
Showa Sangyo Co., Ltd. Business Overview & Revenue Model
Company Description
Showa Sangyo Co., Ltd., a diversified Japanese enterprise, specializes in the production, processing, and distribution of food products across various sectors. Its consumer goods division supplies a wide assortment of household food items, including...
How the Company Makes Money
Showa Sangyo makes money primarily by processing grains and oilseeds and selling the resulting products to downstream customers across food manufacturing, foodservice, and retail, as well as to the livestock and aquaculture supply chain. Key revenue...
Showa Sangyo Co., Ltd. Financial Statement Overview
Summary
Revenue has grown from ¥256B to ¥334B over five years but is now plateauing. Net margins remain thin at ~3.5%, and earnings are projected to decline into FY2026. The balance sheet is the strongest element with consistent equity growth and deleveraging (debt-to-equity improving to 0.40x), but cash flow volatility is a significant concern — free cash flow dropped 33% in FY2025 and is estimated to decline further. The blended financial score reflects adequate but unexceptional performance typical of the agricultural products sector, with cash flow inconsistency being the primary drag.
Income Statement
55NeutralBalance Sheet
62PositiveCash Flow
50Neutral| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 335.41B | 335.41B | 334.43B | 346.36B | 335.05B | 287.63B |
| Gross Profit | 59.79B | 59.79B | 57.08B | 56.88B | 45.54B | 46.20B |
| EBITDA | 25.25B | 25.72B | 27.18B | 27.08B | 21.03B | 16.05B |
| Net Income | 10.61B | 10.61B | 11.60B | 12.36B | 7.78B | 4.01B |
Balance Sheet | ||||||
| Total Assets | 274.97B | 274.97B | 258.77B | 265.85B | 251.59B | 235.38B |
| Cash, Cash Equivalents and Short-Term Investments | 8.35B | 8.35B | 8.11B | 8.14B | 6.22B | 9.17B |
| Total Debt | 51.03B | 51.03B | 53.95B | 58.74B | 63.26B | 56.14B |
| Total Liabilities | 122.36B | 122.36B | 120.14B | 132.59B | 135.23B | 126.28B |
| Stockholders Equity | 149.29B | 149.29B | 134.98B | 129.61B | 113.00B | 105.70B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 6.31B | 8.49B | 12.64B | -13.05B | -10.03B |
| Operating Cash Flow | 0 | 18.01B | 20.27B | 23.75B | -2.93B | 1.33B |
| Investing Cash Flow | 0 | -12.54B | -11.38B | -12.40B | -6.16B | -11.73B |
| Financing Cash Flow | 0 | -3.97B | -10.06B | -9.44B | 6.14B | 8.40B |
Showa Sangyo Co., Ltd. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:2004, the sentiment is Positive. The current price of 4095.00 is above the 20-day moving average (MA) of 3861.50, above the 50-day MA of 3802.58, and above the 200-day MA of 3353.69, indicating a bullish trend. The MACD of 70.26 indicates Negative momentum. The RSI at 67.25 is Neutral, neither overbought nor oversold. The STOCH value of 55.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:2004.
Showa Sangyo Co., Ltd. Peers Comparison
Overall Rating
JP:137974Outperform
JP:200372.8Outperform- JP:200463Neutral
JP:229261Neutral
JP:133358Neutral
JP:293857Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:1379 | 74Outperform | JPY 65.62B | 10.69 | ― | 2.64% | 3.50% | 17.03% |
| JP:2003 | 73Outperform | JPY 72.99B | 21.69 | ― | 3.57% | 0.01% | 2.53% |
| JP:2004 | 63Neutral | JPY 133.65B | 12.62 | ― | 3.28% | 3.00% | 15.52% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| JP:2292 | 61Neutral | JPY 85.23B | 10.29 | ― | 3.97% | 7.88% | 48.11% |
| JP:1333 | 58Neutral | JPY 182.50B | 9.51 | 7.93% | 4.16% | 2.53% | -4.69% |
| JP:2938 | 57Neutral | JPY 60.90B | 21.68 | ― | 0.66% | 20.88% | 34.54% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JP:2004 | Showa Sangyo Co., Ltd. | 4120.00 | 1269.79 | 44.55% | |
| JP:1333 | Maruha Nichiro Corp | 1203.00 | 79.99 | 7.12% | |
| JP:1379 | Hokuto Corporation | 2081.00 | 294.54 | 16.49% | |
| JP:2003 | Nitto Fuji Flour Milling Co., Ltd. | 1959.00 | 354.81 | 22.12% | |
| JP:2292 | S Foods Inc. | 2696.00 | 258.75 | 10.62% | |
| JP:2938 | Okamura Foods Co. Ltd. | 1207.00 | 28.80 | 2.44% |
Showa Sangyo Co., Ltd. Corporate Events
Showa Sangyo Posts Higher Q1 Sales but Flat Profits, Confirms Full-Year Outlook
Showa Sangyo reported consolidated net sales of ¥92.38 billion for the three months ended June 30, 2026, up 9.1% year on year, while operating profit slipped 1.5% to ¥3.48 billion and profit attributable to owners of parent edged down 0.2%...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 17, 2026