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Tomoegawa Corporation (JP:3878)
:3878
Japanese Market
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Tomoegawa Corporation (3878) AI Stock Analysis

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JP:3878

Tomoegawa Corporation

(3878)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
¥890.00
▲(15.28% Upside)
Action:Reiterated
Date:05/17/26
The score is driven by strong technical uptrend signals and attractive valuation (low P/E with a dividend). Offsetting these positives, financial performance is constrained by weakened profitability versus prior peaks and notably inconsistent free cash flow that currently lags reported earnings.
Positive Factors
Improving Leverage
Lower leverage and rising equity indicate a repaired balance sheet that enhances financial resilience. With debt below equity and sustained equity growth, the company has more flexibility to absorb shocks, finance targeted capex, or pursue strategic investments without excessive refinancing risk.
Negative Factors
Volatile Free Cash Flow
Inconsistent FCF undermines the company’s ability to fund dividends, deleverage, or invest without external financing. Near-zero FCF despite positive earnings suggests working-capital swings or reinvestment needs that can constrain capital returns and strategic flexibility over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Leverage
Lower leverage and rising equity indicate a repaired balance sheet that enhances financial resilience. With debt below equity and sustained equity growth, the company has more flexibility to absorb shocks, finance targeted capex, or pursue strategic investments without excessive refinancing risk.
Read all positive factors

Tomoegawa Corporation (3878) vs. iShares MSCI Japan ETF (EWJ)

Tomoegawa Corporation Business Overview & Revenue Model

Company Description
Tomoegawa Co., Ltd. manufactures, processes, and sells electronics parts, display parts, fine particles, functional sheets, and specialty paper products primarily in Japan. It offers heat/electricity/electromagnetic wave control related products, ...
How the Company Makes Money
null...

Tomoegawa Corporation Financial Statement Overview

Summary
Income statement trends are mixed (modest revenue growth and improving gross margin, but materially weaker operating/net margins vs. 2022–2023). Balance sheet leverage has improved and equity has grown, yet returns are modest (ROE ~5.3% in 2026). The largest drag is cash flow quality: free cash flow has been volatile and near breakeven in 2026, with FCF not translating from earnings.
Income Statement
66
Positive
Balance Sheet
61
Positive
Cash Flow
45
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue34.46B35.55B34.43B33.69B34.17B32.78B
Gross Profit7.97B8.28B7.87B7.37B7.53B6.76B
EBITDA3.35B3.55B3.41B3.24B4.24B4.52B
Net Income708.00M945.00M750.00M594.00M1.45B1.65B
Balance Sheet
Total Assets46.82B50.94B46.09B45.71B42.95B43.57B
Cash, Cash Equivalents and Short-Term Investments5.52B5.10B4.92B5.42B4.35B4.83B
Total Debt14.03B15.14B14.02B12.83B12.71B12.65B
Total Liabilities27.27B28.45B26.45B26.31B24.57B25.96B
Stockholders Equity15.25B17.67B15.24B14.70B14.03B13.48B
Cash Flow
Free Cash Flow0.006.00M-613.00M2.45B116.00M2.44B
Operating Cash Flow0.003.34B1.80B4.18B1.01B3.36B
Investing Cash Flow0.00-3.73B-2.76B-1.74B-54.00M-217.00M
Financing Cash Flow0.00473.00M500.00M-1.65B-1.57B-2.65B

Tomoegawa Corporation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price772.00
Price Trends
50DMA
864.21
Negative
100DMA
831.01
Negative
200DMA
787.14
Positive
Market Momentum
MACD
5.51
Positive
RSI
38.17
Neutral
STOCH
37.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3878, the sentiment is Negative. The current price of 772 is below the 20-day moving average (MA) of 890.05, below the 50-day MA of 864.21, and below the 200-day MA of 787.14, indicating a neutral trend. The MACD of 5.51 indicates Positive momentum. The RSI at 38.17 is Neutral, neither overbought nor oversold. The STOCH value of 37.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:3878.

Tomoegawa Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
¥350.99B16.945.12%2.36%1.08%25.31%
70
Outperform
¥62.03B12.822.67%0.65%22.48%
67
Neutral
¥161.40B12.483.57%1.31%0.86%158.75%
66
Neutral
¥8.34B8.021.90%3.25%32.39%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
55
Neutral
¥45.96B19.03-0.13%2.31%-10.51%-56.26%
49
Neutral
¥156.57B19.041.66%1.53%-1.57%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3878
Tomoegawa Corporation
846.00
258.00
43.88%
JP:7966
Lintec
5,350.00
2,664.07
99.19%
JP:3864
Mitsubishi Paper Mills
1,090.00
476.43
77.65%
JP:3863
Nippon Paper
1,371.00
357.07
35.22%
JP:3880
Daio Paper Corporation
958.00
140.79
17.23%
JP:3708
Tokushu Tokai Paper Co., Ltd.
1,671.00
519.23
45.08%
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.Date of analysis: May 17, 2026