Showa Sangyo Co., Ltd. AI Stock Analysis
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Showa Sangyo Co., Ltd. (2004) AI Stock Analysis
Showa Sangyo Co., Ltd.
(TSE/TYO:2004)
The overall score reflects a combination of strong fundamentals and favorable market behavior. Financial performance is the primary driver: the company shows resilient earnings, an improving margin profile versus prior trough years, and a robust, conservatively leveraged balance sheet, partially offset by only moderate and somewhat volatile cash generation. Technicals provide a significant positive boost, with the share price in a clear multi-timeframe uptrend, supported by constructive momentum and relatively low volatility, suggesting healthy investor demand rather than speculative excess. Valuation further supports the case, as a modest P/E around 11 and a dividend yield above 3% offer a balanced mix of income and potential appreciation at a reasonable price. With no incremental signals from recent earnings calls or corporate events, the stock earns a solidly above-average score that recognizes its stability and upside potential while acknowledging cash flow and margin consistency as key areas to watch.
Showa Sangyo Co., Ltd. (2004) vs. iShares MSCI Japan ETF (EWJ)
- Market Cap
- JPY 128.36B
- Dividend Yield
- 3.46%
- Average Volume (3M)
- 76.91K
- Price to Earnings (P/E)
- 14.0
- Beta (1Y)
- 0.30
- Revenue Growth
- 4.20%
- EPS Growth
- -6.67%
- 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
Showa Sangyo demonstrates solid revenue recovery with 2026 sales above 2025 and clearly higher than 2021–2022, supported by rising gross profit and a strong rebound in operating profit after the 2025 dip, while net income remains positive and resilient around ¥10–12B. The balance sheet is a clear strength, with equity growing from about ¥99.6B in 2021 to roughly ¥149.3B in 2026, improving debt-to-equity from above 0.50 to around 0.40 and maintaining solid but slightly easing returns on equity. Cash flow is the main constraint: although operating and free cash flow have turned sustainably positive since 2024, free cash flow has trended down from about ¥12.6B to roughly ¥6.3B and remains only a fraction of net income, indicating moderate cash conversion and some working capital and investment drag. Overall, these factors justify a strong but not top-tier financial performance score.
Income Statement
78PositiveBalance Sheet
82Very PositiveCash Flow
65Positive| 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 Neutral. The current price of 3905.00 is below the 20-day moving average (MA) of 3967.25, above the 50-day MA of 3853.59, and above the 200-day MA of 3390.83, indicating a neutral trend. The MACD of 51.13 indicates Positive momentum. The RSI at 48.55 is Neutral, neither overbought nor oversold. The STOCH value of 35.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:2004.
Showa Sangyo Co., Ltd. Peers Comparison
Overall Rating
- JP:200480.6Outperform
JP:200377Outperform
JP:137974Outperform
JP:229269Neutral
JP:133358Neutral
JP:293856Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JP:2004 | 81Outperform | JPY 127.33B | 13.98 | ― | 3.46% | 4.20% | -6.67% |
| JP:2003 | 77Outperform | JPY 75.60B | 20.68 | ― | 3.41% | -0.06% | 6.97% |
| JP:1379 | 74Outperform | JPY 65.96B | 10.73 | ― | 2.64% | 3.50% | 17.03% |
| JP:2292 | 69Neutral | JPY 86.15B | 10.41 | ― | 3.95% | 7.88% | 48.11% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| JP:1333 | 58Neutral | JPY 178.33B | 10.63 | 6.81% | 4.27% | 2.53% | -4.69% |
| JP:2938 | 56Neutral | JPY 59.89B | 21.32 | ― | 0.68% | 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. | 3905.00 | 1011.46 | 34.96% | |
| JP:1333 | Maruha Nichiro Corp | 1172.00 | -5.99 | -0.51% | |
| JP:1379 | Hokuto Corporation | 2085.00 | 240.19 | 13.02% | |
| JP:2003 | Nitto Fuji Flour Milling Co., Ltd. | 2050.00 | 409.68 | 24.98% | |
| JP:2292 | S Foods Inc. | 2708.00 | 231.16 | 9.33% | |
| JP:2938 | Okamura Foods Co. Ltd. | 1184.00 | -3.14 | -0.26% |
Showa Sangyo Co., Ltd. Corporate Events
Showa Sangyo Cuts Operating Forecasts, Raises Net Profit Outlook
Showa Sangyo revised its fiscal 2027 consolidated forecast, keeping sales at ¥350.0 billion but lowering operating profit to ¥10.0 billion and ordinary profit to ¥12.0 billion. Net profit attributable to shareholders was raised to ¥11.5 billion, or ¥...
Showa Sangyo to Sell Investment Securities for Capital Efficiency
Showa Sangyo Co., Ltd., listed on the Tokyo Stock Exchange’s Prime Market, announced that its board approved the sale of a portion of its listed investment securities. The company expects the transaction, scheduled from November 10, 2026, through Mar...
Showa Sangyo Reports Higher Sales but Lower Six-Month Profits
Showa Sangyo Co., Ltd., listed on the Tokyo Stock Exchange, reported consolidated results for the six months ended September 30, 2026, with net sales rising 6.7% year-on-year to ¥177.8 billion. Operating profit fell 14.3% to ¥5.2 billion, while profi...
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