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Showa Chemical Industry Co., Ltd.
(4990)
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Rating:69Neutral
Price Target:
¥580.00
▲(20.83% Upside)
Action:Reiterated
Date:07/03/26
The score is driven primarily by improving financial resilience (lower leverage and consistent positive cash flow), tempered by weakening profitability and a notable FY2026 revenue decline risk. Technicals add support via an established uptrend, while valuation is a positive contributor due to the low P/E and moderate dividend yield.
Positive Factors
Balance Sheet Improvement
Material deleveraging to ~0.36 D/E and an expanded equity base materially enhance financial flexibility. A stronger balance sheet supports capital allocation, cyclical resilience, and capacity to fund investments or weather downturns without needing urgent external financing.
Negative Factors
Weakening Profitability
A multi-year decline in net margin erodes earnings resilience and reduces returns on capital. If driven by rising costs or lower pricing, it can persistently compress ROE and limit retained earnings available for reinvestment or shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Improvement
Material deleveraging to ~0.36 D/E and an expanded equity base materially enhance financial flexibility. A stronger balance sheet supports capital allocation, cyclical resilience, and capacity to fund investments or weather downturns without needing urgent external financing.
Read all positive factors
Showa Chemical Industry Co., Ltd. (4990) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥5.28B
Dividend Yield1.98%
Average Volume (3M)4.78K
Price to Earnings (P/E)8.9
Beta (1Y)0.23
Revenue Growth0.03%
EPS Growth30.72%
CountryJP
Employees216
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)58.67
Shares Outstanding11,979,000
10 Day Avg. Volume5,100
30 Day Avg. Volume4,780
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)0.59
Price to Sales (P/S)0.59
P/FCF Ratio12.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Showa Chemical Industry Co., Ltd. Business Overview & Revenue Model
Company Description
Showa Chemical Industry Co., Ltd. specializes in the production and distribution of diatomite and perlite filter aids, marketed under its Radiolite trademark and the Topco brand (notably in China), with operations extending across China and Japan....
How the Company Makes Money
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Showa Chemical Industry Co., Ltd. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.27B | 9.24B | 9.20B | 9.23B | 7.78B |
| Gross Profit | 2.91B | 2.81B | 2.91B | 2.95B | 2.46B |
| EBITDA | 724.63M | 877.73M | 1.07B | 1.13B | 799.10M |
| Net Income | 624.84M | 411.84M | 584.40M | 616.53M | 345.02M |
Balance Sheet | |||||
| Total Assets | 14.57B | 13.66B | 13.53B | 13.04B | 12.61B |
| Cash, Cash Equivalents and Short-Term Investments | 2.97B | 3.17B | 3.15B | 2.99B | 3.25B |
| Total Debt | 2.28B | 2.88B | 3.21B | 3.64B | 4.17B |
| Total Liabilities | 5.18B | 5.54B | 5.93B | 6.28B | 6.49B |
| Stockholders Equity | 9.39B | 8.12B | 7.60B | 6.76B | 6.12B |
Cash Flow | |||||
| Free Cash Flow | 436.16M | 404.05M | 521.71M | 371.53M | 368.35M |
| Operating Cash Flow | 826.62M | 766.55M | 825.52M | 625.07M | 518.79M |
| Investing Cash Flow | -369.02M | -135.97M | -160.60M | -281.75M | -185.86M |
| Financing Cash Flow | -665.37M | -435.69M | -514.30M | -581.75M | -211.43M |
Showa Chemical Industry Co., Ltd. Technical Analysis
Positive
480.00
Price Trends
498.26
Positive
500.68
Positive
501.09
Positive
Market Momentum
1.36
Negative
54.55
Neutral
30.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4990, the sentiment is Positive. The current price of 480 is below the 20-day moving average (MA) of 500.15, below the 50-day MA of 498.26, and below the 200-day MA of 501.09, indicating a bullish trend. The MACD of 1.36 indicates Negative momentum. The RSI at 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 30.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4990.
Showa Chemical Industry Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ¥6.15B | 9.54 | ― | 1.39% | 6.22% | 42.74% | |
77 Outperform | ¥58.91B | 9.87 | ― | 5.04% | -3.74% | 19.78% | |
71 Outperform | ¥9.29B | 6.47 | ― | 2.84% | 5.41% | ― | |
69 Neutral | ¥5.28B | 8.85 | ― | 1.22% | 0.03% | 30.72% | |
68 Neutral | ¥7.16B | 8.85 | ― | 3.50% | 14.27% | 13.63% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
51 Neutral | ¥4.49B | -9.67 | ― | ― | 3.37% | -81.97% |
* Basic Materials Sector Average
JP:4990
Showa Chemical Industry Co., Ltd.
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3.92%
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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.