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Showa Sangyo Co., Ltd. (2004) AI Stock Analysis

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JP:2004

Showa Sangyo Co., Ltd.

(TSE/TYO:2004)

Select Model
Rating:75Outperform
Price Target:JPY 4,393.00â–²(12.50% Upside)
Action:upgraded
Date:08/17/26

Strong technical momentum and attractive valuation drive the score upward, supported by solid balance sheet stability, though moderated by income volatility and cash flow inconsistencies.

Positive Factors
Stronger balance sheetLower debt and steadily rising equity strengthen the company’s capital base and improve financial flexibility. This provides greater capacity to absorb operating volatility, maintain investment, and support customers across its food and agribusiness activities over the next several quarters.
Negative Factors
Volatile free cash flowAlthough operating and free cash flow improved after 2023, free cash flow fell in 2025 versus 2024 and declined again in 2026. This inconsistency weakens confidence in dependable cash returns and may constrain the pace of investment, deleveraging, or shareholder distributions.

Showa Sangyo Co., Ltd. (2004) vs. iShares MSCI Japan ETF (EWJ)

-10%0%10%20%30%40%50%JP:2004+34.96%EWJ+15.75%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
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

Steady revenue growth with resilience, strong balance sheet with growing equity and low leverage, but volatile net income and inconsistent cash flows lead to a moderate score.

Income Statement

65Positive

Balance Sheet

78Positive

Cash Flow

55Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue335.41B335.41B334.43B346.36B335.05B287.63B
Gross Profit59.79B59.79B57.08B56.88B45.54B46.20B
EBITDA25.25B25.72B27.18B27.08B21.03B16.05B
Net Income10.61B10.61B11.60B12.36B7.78B4.01B
Balance Sheet
Total Assets274.97B274.97B258.77B265.85B251.59B235.38B
Cash, Cash Equivalents and Short-Term Investments8.35B8.35B8.11B8.14B6.22B9.17B
Total Debt51.03B51.03B53.95B58.74B63.26B56.14B
Total Liabilities122.36B122.36B120.14B132.59B135.23B126.28B
Stockholders Equity149.29B149.29B134.98B129.61B113.00B105.70B
Cash Flow
Free Cash Flow06.31B8.49B12.64B-13.05B-10.03B
Operating Cash Flow018.01B20.27B23.75B-2.93B1.33B
Investing Cash Flow0-12.54B-11.38B-12.40B-6.16B-11.73B
Financing Cash Flow0-3.97B-10.06B-9.44B6.14B8.40B

Showa Sangyo Co., Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price3905.00

Price Trends

50DMA3853.59Positive
100DMA3643.18Positive
200DMA3390.83Positive

Market Momentum

MACD51.13Positive
RSI48.55Neutral
STOCH35.35Neutral

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

UnderperformOutperform
Sector (62)

Financial Indicators

JP:2004 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:2003JP:200377OutperformJPY 75.60B20.68―3.41%-0.06%6.97%
JP:2004JP:200475OutperformJPY 127.33B13.98―3.46%4.20%-6.67%
JP:1379JP:137974OutperformJPY 65.96B10.73―2.64%3.50%17.03%
JP:2292JP:229269NeutralJPY 86.15B10.41―3.95%7.88%48.11%
Sector *62Neutral$20.33B14.63-3.31%3.23%1.93%-12.26%
JP:1333JP:133358NeutralJPY 178.33B10.636.81%4.27%2.53%-4.69%
JP:2938JP:293856NeutralJPY 59.89B21.32―0.68%20.88%34.54%

* Consumer Defensive Sector Average

Performance Comparison

0%20%40%JP:2004JP:1333JP:1379JP:2003JP:2292JP:2938Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
JP:2004 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:2004Showa Sangyo Co., Ltd.3905.001011.4634.96%
JP:1333Maruha Nichiro Corp1172.00-5.99-0.51%
JP:1379Hokuto Corporation2085.00240.1913.02%
JP:2003Nitto Fuji Flour Milling Co., Ltd.2050.00409.6824.98%
JP:2292S Foods Inc.2708.00231.169.33%
JP:2938Okamura Foods Co. Ltd.1184.00-3.14-0.26%

Showa Sangyo Co., Ltd. Corporate Events

Showa Sangyo Cuts Operating Forecasts, Raises Net Profit Outlook

Nov 9, 2026

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

Nov 9, 2026

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

Nov 9, 2026

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...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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