Tomoegawa Corporation (3878) AI Stock Analysis

• Market Cap: ¥8.06B
• Dividend Yield: 1.9%
• Average Volume (3M): 17.62K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.11
• Revenue Growth: -0.17%
• EPS Growth: -37.01%
• Country: JP
• Employees: 1,305
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 27.19
• Shares Outstanding: 10,389,406
• 10 Day Avg. Volume: 10,440
• 30 Day Avg. Volume: 17,616
• PEG Ratio: 0.36
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -12.04
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ¥806.00 ▲(4.40% Upside)

Tomoegawa Corporation's stock score is primarily driven by its solid financial performance and attractive valuation. However, technical indicators suggest a bearish trend, which could pose short-term challenges. The lack of recent earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust market position and effective product demand, supporting long-term business expansion and stability.

Operational Efficiency

Improved gross profit margins reflect strong operational efficiency, enhancing profitability and competitive advantage in the market.

Market Presence

Strategic partnerships with major firms strengthen market presence, providing a stable customer base and fostering sustainable growth.

Negative Factors

Free Cash Flow Decline

Declining free cash flow may limit the company's ability to invest in growth opportunities and cover capital expenditures, impacting long-term financial health.

Modest Return on Equity

A modest return on equity indicates inefficiencies in generating returns from shareholder investments, which could affect long-term investor confidence.

Low Net Profit Margin

A low net profit margin suggests limited profitability, which could hinder the company's ability to reinvest in business growth and innovation.

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, such as high frequency support electromagnetic wave absorption sheets, high insulation/heat conduction/heat resistant adhesive sheets, low-induction/low-dielectric tangent adhesive sheets, adhesive and re-affixable heat conduction sheets, and conductive adhesive sheets, as well as functional sheets for engineering plastic integral molding; and electronics parts, including lead frame fixing tapes, adhesive tapes, and electrostatic chucks, as well as lids for hermetic seal packages. The company also provides display components, such as optical adhesive, light control, and hard coat films. In addition, it offers fine particle materials, such as magnetic toners, non-magnetic toners, full color toners, and lower energy fixable type toners; information printing materials comprising inkjet, laser printer, and thermal recording papers; magnetic sheet materials consisting of magnetic tickets and prepaid cards; and special fiber sheets, including stainless fiber and fluorine fiber sheets, as well as distributes polyethylene non-woven fabrics under the TYVEK name. Further, the company provides electrical insulating, telecommunications, disinfecting, and ultra-lightweight printing papers; Tomoe River FP, information recording sheets, and tracing papers for use in printing; conductive, absorbing, sterilization bag, handling release, and insulating papers for industrial use; and impact-absorption films, optical fiber sheet optical plug assembly cleaners, copper fiber sheets, and light parts and related products. Tomoegawa Co., Ltd. was founded in 1914 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Tomoegawa Corporation generates revenue through the sale of its specialty materials and products across various sectors. The company's primary revenue streams include the production of electronic materials, which are critical for the manufacturing of displays and semiconductors. Additionally, the company earns income from optical films used in screens and various electronic devices. Significant partnerships with major technology firms enhance its market presence and provide a stable customer base. The continuous demand for innovative materials in the growing electronics sector, along with strategic collaborations and an emphasis on research and development, contribute to Tomoegawa's financial performance.

Tomoegawa Corporation Financial Statement Overview

Summary

Tomoegawa Corporation shows strong revenue growth and operational stability, with a moderate debt-to-equity ratio and healthy equity position. However, the recent decline in free cash flow and modest return on equity suggest room for improvement in profitability and efficiency.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.46B	34.43B	33.69B	34.17B	32.78B	30.77B
Gross Profit	7.97B	7.87B	7.37B	7.53B	6.76B	4.99B
EBITDA	3.35B	3.41B	3.24B	4.24B	4.52B	1.43B
Net Income	708.00M	750.00M	594.00M	1.45B	1.65B	-1.15B
Balance Sheet
Total Assets	46.82B	46.09B	45.71B	42.95B	43.57B	40.66B
Cash, Cash Equivalents and Short-Term Investments	5.52B	4.92B	5.42B	4.35B	4.83B	4.06B
Total Debt	14.03B	13.88B	12.83B	12.54B	12.49B	14.30B
Total Liabilities	27.27B	26.45B	26.32B	24.58B	25.96B	25.35B
Stockholders Equity	15.25B	15.24B	14.70B	14.03B	13.48B	11.50B
Cash Flow
Free Cash Flow	0.00	-613.00M	2.45B	116.00M	2.44B	2.89B
Operating Cash Flow	0.00	1.80B	4.18B	1.01B	3.36B	4.21B
Investing Cash Flow	0.00	-2.76B	-1.74B	-54.00M	-217.00M	-1.30B
Financing Cash Flow	0.00	500.00M	-1.65B	-1.57B	-2.65B	-2.42B

Tomoegawa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 772.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 772 is below the 20-day moving average (MA) of 782.90, below the 50-day MA of 779.58, and above the 200-day MA of 722.84, indicating a bullish trend. The MACD of 3.50 indicates Negative momentum. The RSI at 57.89 is Neutral, neither overbought nor oversold. The STOCH value of 78.82 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	73 Outperform	¥14.10B	13.12	―	3.04%	4.92%	32.29%
3878	64 Neutral	¥8.06B	14.34	―	1.90%	-0.17%	-37.01%
3877	62 Neutral	¥27.06B	37.21	―	3.72%	-2.18%	-77.82%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
7808	61 Neutral	¥5.83B	5.10	―	2.57%	4.01%	-2.62%
7897	54 Neutral	¥3.23B	-92.45	―	1.80%	0.71%	-118.76%
3896	50 Neutral	¥3.39B	-15.23	―	―	11.79%	-1.56%