Showa Holdings Co., Ltd. (5103) AI Stock Analysis

• Market Cap: ¥3.87B
• Dividend Yield: N/A
• Average Volume (3M): 409.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -2.64%
• EPS Growth: 44.05%
• Country: JP
• Employees: 323
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): -2.79
• Shares Outstanding: 76,293,430
• 10 Day Avg. Volume: 83,570
• 30 Day Avg. Volume: 409,273
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥59.00
• Price Target Upside: 15.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ¥59.00 ▲(15.69% Upside)

The overall stock score is primarily influenced by significant financial challenges, including consistent losses and liquidity issues, which are the most impactful factors. Technical analysis provides a somewhat positive outlook with bullish momentum, but poor valuation metrics, including a negative P/E ratio, weigh heavily on the score. The absence of earnings call and corporate events data means these factors do not influence the score.

Showa Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

Showa Holdings Co., Ltd. is a diversified Japanese company engaged in several business sectors, including rubber products, financial services, and sports entertainment. The company is primarily known for its production of rubber and plastic products used in various industries, including automotive and industrial applications. Additionally, Showa Holdings has interests in providing financial services and managing sports and entertainment facilities, contributing to its diversified business portfolio.

How the Company Makes Money

Showa Holdings Co., Ltd. generates revenue through multiple streams that reflect its diversified business model. The core revenue stream comes from the manufacturing and sale of rubber and plastic products, which are supplied to automotive and industrial sectors. This segment benefits from ongoing demands in these industries and drives a significant portion of the company's income. Another revenue stream is its financial services division, which includes lending and investment services, generating income through interest, fees, and investment returns. Furthermore, Showa Holdings earns from its sports and entertainment segment by managing facilities and events, tapping into consumer spending on leisure activities. The company's financial performance is supported by strategic partnerships and investments that enhance its market position across these sectors.

Showa Holdings Co., Ltd. Financial Statement Overview

Summary

Showa Holdings Co., Ltd. is facing significant financial challenges, including declining revenues, consistent losses, and high leverage. The income statement reflects negative net income and operational inefficiencies. The balance sheet indicates high financial risk with an increasing debt-to-equity ratio, although a steady cash position provides some financial buffer. Cash flow issues are evident with negative free cash flow, highlighting liquidity concerns.

Income Statement

The income statement reveals a decline in revenue over the years, with a negative net income indicating persistent losses. Gross profit margins have decreased significantly from their peaks, highlighting cost management challenges. The EBIT and EBITDA margins are also negative, reflecting ongoing operational inefficiencies.

Balance Sheet

The balance sheet shows a declining equity base and an increasing debt-to-equity ratio, pointing to higher leverage and financial risk. The equity ratio is low, which may limit the company's financial flexibility. Despite this, the company maintains a steady cash position, which is a positive aspect.

Cash Flow

Cash flow analysis indicates negative free cash flow in recent years, driven by insufficient operating cash flow to cover capital expenditures. The operating cash flow to net income ratio is negative, reflecting cash outflows and highlighting liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.62B	8.62B	8.87B	7.58B	9.79B	13.66B
Gross Profit	2.40B	2.40B	2.40B	2.03B	3.98B	7.48B
EBITDA	57.13M	-173.21M	-714.33M	-134.89M	-1.49B	-2.11B
Net Income	-202.85M	-203.71M	-531.55M	-338.83M	-917.33M	-1.23B
Balance Sheet
Total Assets	6.53B	6.53B	6.83B	6.76B	6.18B	39.84B
Cash, Cash Equivalents and Short-Term Investments	640.72M	640.72M	1.05B	508.86M	351.04M	11.64B
Total Debt	882.39M	882.39M	922.33M	843.11M	895.35M	15.91B
Total Liabilities	3.42B	3.42B	3.92B	3.84B	3.36B	25.76B
Stockholders Equity	1.74B	1.74B	1.65B	2.01B	2.13B	4.02B
Cash Flow
Free Cash Flow	0.00	-371.58M	-200.84M	-25.23M	708.21M	7.22B
Operating Cash Flow	0.00	-324.46M	-75.08M	9.28M	826.86M	7.41B
Investing Cash Flow	0.00	-58.24M	-180.00M	30.65M	432.94M	-357.17M
Financing Cash Flow	0.00	-32.86M	784.60M	-111.24M	-1.31B	-6.76B

Showa Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 51.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5103, the sentiment is Neutral. The current price of 51 is below the 20-day moving average (MA) of 54.40, below the 50-day MA of 54.42, and above the 200-day MA of 46.45, indicating a neutral trend. The MACD of -0.95 indicates Positive momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5103.

Showa Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5122	74 Outperform	¥88.46B	18.15	7.04%	2.34%	2.79%	-27.14%
5199	71 Outperform	¥2.51B	11.32	7.33%	3.95%	-4.57%	-25.78%
4098	69 Neutral	¥2.46B	18.07	3.91%	1.23%	-3.85%	―
4092	68 Neutral	¥25.73B	10.22	5.52%	3.63%	-1.44%	-1.26%
5103	52 Neutral	¥3.87B	―	―	―	-2.64%	44.05%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%