Tomoegawa Corporation (3878) AI Stock Analysis

• Market Cap: ¥7.10B
• Dividend Yield: 2.14%
• Average Volume (3M): 14.70K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.90
• Revenue Growth: 2.20%
• EPS Growth: 28.34%
• Country: JP
• Employees: 1,305
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -23.42
• Shares Outstanding: 10,389,406
• 10 Day Avg. Volume: 13,350
• 30 Day Avg. Volume: 14,700
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥735.00
• Price Target Upside: 4.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ¥781.00 ▲(11.25% Upside)

The most significant factor is the company's stable financial performance, supported by strong revenue growth and operational efficiency, although cash flow management requires attention. The technical analysis supports a neutral market sentiment, while a favorable valuation adds to the stock's attractiveness due to its low P/E ratio and decent dividend yield. Overall, the stock is positioned well for potential gains, assuming improvements in free cash flow.

Tomoegawa Corporation Business Overview & Revenue Model

Company Description

Tomoegawa Co., Ltd. is a Japanese company primarily engaged in the manufacturing and sale of various specialty paper products and related materials. The company operates in several sectors, including the production of electrostatic copy paper, heat-resistant paper, and other industrial materials. Tomoegawa is known for its innovations in the paper industry, focusing on high-value-added products that serve diverse industries such as electronics, printing, and packaging.

How the Company Makes Money

Tomoegawa Corporation generates revenue through the production and sale of a wide range of paper products and specialty materials. The company's key revenue streams include the sale of electrostatic copy paper for printing and copying, heat-resistant paper used in industrial applications, and other advanced paper products designed for specific industrial uses. Tomoegawa's business model is supported by its focus on research and development, which enables the company to innovate and offer high-quality, customized solutions to its clients. Additionally, the company may engage in strategic partnerships and collaborations to expand its market reach and enhance its product offerings, contributing to its overall earnings.

Tomoegawa Corporation Financial Statement Overview

Summary

Tomoegawa Corporation shows strong revenue growth and operational stability. Effective cost management is evident in the rising gross profit margin. However, the net profit margin is low, and there's a decline in free cash flow, indicating potential future investment challenges. The balance sheet is sound with moderate leverage.

Income Statement

Tomoegawa Corporation has demonstrated solid revenue growth over the past few years, with a noticeable increase in gross profit margin, indicating effective cost management. The company has shown a positive trend in net income, although the net profit margin remains relatively low. EBITDA margin is stable, reflecting good operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, indicating a balanced use of debt and equity financing. The equity ratio is healthy, suggesting a strong equity position relative to assets. However, the return on equity is modest, pointing to potential inefficiencies in generating returns from shareholder equity.

Cash Flow

The cash flow statement reveals fluctuations in free cash flow, with a significant decline in the most recent year. The operating cash flow to net income ratio is positive, highlighting adequate cash generation from operations. However, the negative free cash flow indicates potential challenges in covering capital expenditures.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.43B	33.69B	34.17B	32.78B	30.77B
Gross Profit	7.87B	7.37B	7.53B	6.76B	4.99B
EBITDA	3.41B	3.24B	4.24B	4.52B	1.43B
Net Income	750.00M	594.00M	1.45B	1.65B	-1.15B
Balance Sheet
Total Assets	46.09B	45.71B	42.95B	43.57B	40.66B
Cash, Cash Equivalents and Short-Term Investments	4.92B	5.42B	4.35B	4.83B	4.06B
Total Debt	13.88B	12.83B	12.54B	12.49B	14.30B
Total Liabilities	26.45B	26.32B	24.58B	25.96B	25.35B
Stockholders Equity	15.24B	14.70B	14.03B	13.48B	11.50B
Cash Flow
Free Cash Flow	-613.00M	2.45B	116.00M	2.44B	2.89B
Operating Cash Flow	1.80B	4.18B	1.01B	3.36B	4.21B
Investing Cash Flow	-2.76B	-1.74B	-54.00M	-217.00M	-1.30B
Financing Cash Flow	500.00M	-1.65B	-1.57B	-2.65B	-2.42B

Tomoegawa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 702.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3878, the sentiment is Positive. The current price of 702 is below the 20-day moving average (MA) of 708.15, above the 50-day MA of 692.58, and above the 200-day MA of 691.42, indicating a neutral trend. The MACD of 3.06 indicates Positive momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 59.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3878.

Tomoegawa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3513	75 Outperform	¥8.24B	9.91		4.42%	2.53%	-20.37%
3877	75 Outperform	¥22.84B	12.52		4.11%	2.95%	-53.11%
3878	71 Outperform	¥7.10B	9.62		2.14%	2.20%	28.34%
7808	70 Outperform	¥6.10B	5.27		2.52%	-4.73%	-29.66%
3896	61 Neutral	¥3.99B	111.29		―	6.26%	-31.63%
7897	61 Neutral	¥3.46B	175.61		1.65%	-2.77%	-112.57%
Sector *	61 Neutral	$9.67B	7.09	-0.14%	3.12%	3.13%	-55.47%