Showa Sangyo Valuation

Is 2004 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 2004 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2004 (¥2787) is trading below our estimate of fair value (¥3597.12)

Significantly Below Fair Value: 2004 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2004?

Key metric: As 2004 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2004. This is calculated by dividing 2004's market cap by their current earnings.
What is 2004's PE Ratio?
PE Ratio6.4x
EarningsJP¥14.21b
Market CapJP¥90.08b

Price to Earnings Ratio vs Peers

How does 2004's PE Ratio compare to its peers?

The above table shows the PE ratio for 2004 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.9x
2292 S Foods
26.9x32.9%JP¥84.1b
2220 Kameda SeikaLtd
42.5x9.2%JP¥88.0b
2109 Mitsui DM Sugar Holdings
13.1xn/aJP¥103.0b
4526 Riken Vitamin
9x2.3%JP¥75.5b
2004 Showa Sangyo
6.4x-6.8%JP¥90.5b

Price-To-Earnings vs Peers: 2004 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (22.9x).


Price to Earnings Ratio vs Industry

How does 2004's PE Ratio compare vs other companies in the JP Food Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2215 First Baking
1.9xn/aUS$27.02m
No more companies available in this PE range
2004 6.4xIndustry Avg. 15.0xNo. of Companies19PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2004 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the JP Food industry average (15x).


Price to Earnings Ratio vs Fair Ratio

What is 2004's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2004 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.4x
Fair PE Ratio13.1x

Price-To-Earnings vs Fair Ratio: 2004 is good value based on its Price-To-Earnings Ratio (6.4x) compared to the estimated Fair Price-To-Earnings Ratio (13.1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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