Showa Denko K.K.
Showa Denko K.K. Fundamental Analysis
Showa Denko K.K. (SHWDF) shows weak financial fundamentals with a PE ratio of 66.92, profit margin of 2.13%, and ROE of 4.38%. The company generates $1353.0B in annual revenue with moderate year-over-year growth of 7.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SHWDF's fundamental strength across five key dimensions:
Efficiency Score
WeakSHWDF struggles to generate sufficient returns from assets.
Valuation Score
ModerateSHWDF shows balanced valuation metrics.
Growth Score
ModerateSHWDF shows steady but slowing expansion.
Financial Health Score
ModerateSHWDF shows balanced financial health with some risks.
Profitability Score
WeakSHWDF struggles to sustain strong margins.
Key Financial Metrics
Is SHWDF Expensive or Cheap?
P/E Ratio
SHWDF trades at 66.92 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SHWDF's PEG of 0.54 indicates potential undervaluation.
Price to Book
The market values Showa Denko K.K. at 2.76 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.27 times EBITDA. This is generally considered low.
How Well Does SHWDF Make Money?
Net Profit Margin
For every $100 in sales, Showa Denko K.K. keeps $2.13 as profit after all expenses.
Operating Margin
Core operations generate 4.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.38 in profit for every $100 of shareholder equity.
ROA
Showa Denko K.K. generates $1.37 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Showa Denko K.K. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Showa Denko K.K. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
SHWDF converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
66.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SHWDF Stacks Against Its Sector Peers
| Metric | SHWDF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 66.92 | 27.01 | Worse (Expensive) |
| ROE | 4.38% | 949.00% | Weak |
| Net Margin | 2.13% | -16159.00% (disorted) | Weak |
| Debt/Equity | 1.41 | 0.48 | Weak (High Leverage) |
| Current Ratio | 1.80 | 4.42 | Neutral |
| ROA | 1.37% | -6411.00% (disorted) | Weak |
SHWDF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Showa Denko K.K.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.68%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-18.85%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
68.12%
Industry Style: Cyclical, Commodity, Value
High Growth