Showa Holdings Co Ltd

Showa Holdings has a market capitalization of ¥2.96 billion and a price-to-book ratio of 1.8, indicating that the market values the company at 80% above its book value. The company's liquidity position is characterized by ¥1.05 billion in cash and equivalents, but it also has a negative operating cash flow of ¥75.08 million, suggesting cash outflows from operations. The current ratio of 1.43 indicates that the company has sufficient current assets to cover its current liabilities, but the negative operating income of ¥73.12 million raises concerns about its ability to generate sustainable cash flows from operations.

Profitability metrics for Showa Holdings are weak, with a return on equity (ROE) of -1.51% and a return on assets (ROA) of -0.36%. These figures are below the industry median for ROE and ROA, which are typically positive for food processing companies. The company's gross profit of ¥570.91 million represents 27.75% of its revenue, but the operating loss of ¥73.12 million indicates that the company is not effectively managing its operating expenses.

Geographically, Showa Holdings is primarily focused on the Japanese market, with no significant international revenue disclosed. The company's revenue concentration in a single country exposes it to local economic and regulatory risks. The company's business is segmented into food processing, but no further details on specific product lines or geographic regions are provided in the available data.

The company's growth trajectory is mixed. While revenue for the latest period was ¥20.57 billion, the operating loss and negative net income suggest a decline in profitability. Analyst estimates for the most recent period indicate that the company's actual revenue was ¥8.62 billion, which is significantly lower than the ¥20.57 billion reported in the financial snapshot. This discrepancy may indicate a need for further investigation into the company's financial reporting practices.

Risk factors for Showa Holdings include its negative operating income and cash flow, which could lead to liquidity constraints. The company's debt-to-equity ratio of 0.56 is relatively low, but the negative operating cash flow could impact its ability to service debt. The risk assessment indicates low liquidity and dilution risks, but the negative operating income and cash flow are red flags that require monitoring.

Recent events and filings do not indicate any immediate liquidity or dilution risks for Showa Holdings. The company has not issued new shares recently, and there are no signs of significant debt restructuring or capital raising activities. However, the negative operating income and cash flow suggest that the company may need to take corrective actions to improve its financial performance.

Revenue grew 58.5% year-over-year to JPY 13.7 billion, demonstrating significant top-line expansion momentum.

Cash conversion of 3.01 ranks in the top quartile, outperforming the Food Processing cohort median of 0.98.

Operating losses narrowed significantly from JPY 2.6 billion in FY-4 to near break-even in recent periods.

Long-term debt decreased to JPY 889 million in FY0, indicating improved balance sheet leverage management.

Dilution and liquidity risks are assessed as low, providing a stable capital structure environment for operations.

The company carries a high credit risk flag, signaling potential difficulties in meeting financial obligations.

Net margin of -1.2% places the company in the bottom quartile of the Food Processing cohort.

Operating margin of -3.6% remains in the bottom quartile, highlighting persistent profitability challenges.

Revenue ¥2.10B, +5,1% YoY; Operating income −33,4% YoY.

• ▍Revenue ¥2.10B, +5,1% YoY
• ▍Operating income −33,4% YoY
• ▍Net income −542,6% YoY
• ▍Net margin -5.0%

Revenue ¥2.12B, −6,6% YoY; Operating income −376,4% YoY.

• ▍Revenue ¥2.12B, −6,6% YoY
• ▍Operating income −376,4% YoY
• ▍Net income 0,0% YoY
• ▍Net margin -11.8%

Revenue ¥2.22B, −2,8% YoY; Operating income −113,4% YoY.

• ▍Revenue ¥2.22B, −2,8% YoY
• ▍Operating income −113,4% YoY
• ▍Net income −154,6% YoY
• ▍Net margin -1.0%

Revenue ¥2.07B, +0,6% YoY; Operating income +118,2% YoY.

• ▍Revenue ¥2.07B, +0,6% YoY
• ▍Operating income +118,2% YoY
• ▍Net income +32,4% YoY
• ▍Net margin -0.8%

Revenue ¥2.00B; Operating income -¥89.7M.

• ▍Revenue ¥2.00B
• ▍Operating income -¥89.7M
• ▍Net margin 1.2%

Revenue ¥2.27B; Operating income ¥24.6M.

• ▍Revenue ¥2.27B
• ▍Operating income ¥24.6M
• ▍Net margin -11.0%

Revenue ¥2.28B; Operating income ¥48.5M.

• ▍Revenue ¥2.28B
• ▍Operating income ¥48.5M
• ▍Net margin 1.7%

Revenue ¥2.06B; Operating income -¥73.1M.

• ▍Revenue ¥2.06B
• ▍Operating income -¥73.1M
• ▍Net margin -1.2%

Revenue ¥8.62B, −2,8% YoY; Operating income +96,2% YoY.

• ▍Revenue ¥8.62B, −2,8% YoY
• ▍Operating income +96,2% YoY
• ▍Net income +61,7% YoY
• ▍Free cash flow +68,8% YoY
• ▍Net margin -2.4%

Revenue ¥8.87B, +16,9% YoY; Operating income +76,5% YoY.

• ▍Revenue ¥8.87B, +16,9% YoY
• ▍Operating income +76,5% YoY
• ▍Net income −56,9% YoY
• ▍Free cash flow −285,5% YoY
• ▍Net margin -6.0%

Revenue ¥7.58B, −22,5% YoY; Operating income +76,7% YoY.

• ▍Revenue ¥7.58B, −22,5% YoY
• ▍Operating income +76,7% YoY
• ▍Net income +63,1% YoY
• ▍Free cash flow +90,6% YoY
• ▍Net margin -4.5%

Revenue ¥9.79B, −28,4% YoY; Operating income +38,9% YoY.

• ▍Revenue ¥9.79B, −28,4% YoY
• ▍Operating income +38,9% YoY
• ▍Net income +25,3% YoY
• ▍Free cash flow +27,6% YoY
• ▍Net margin -9.4%