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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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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
¥781.00
▼(-4.05% Downside)
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 (3878) vs. iShares MSCI Japan ETF (EWJ)

Tomoegawa Corporation Business Overview & Revenue Model

Company DescriptionTomoegawa 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 MoneyTomoegawa 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 stable operational efficiency, with room for improvement in profitability and cash flow management. The balance sheet remains sound, but recent declines in free cash flow pose challenges for future investments.
Income Statement
72
Positive
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
68
Positive
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue34.43B34.43B33.69B34.17B32.78B30.77B
Gross Profit7.87B7.87B7.37B7.53B6.76B4.99B
EBITDA3.41B3.41B3.24B4.24B4.52B1.43B
Net Income750.00M750.00M594.00M1.45B1.65B-1.15B
Balance Sheet
Total Assets46.09B46.09B45.71B42.95B43.57B40.66B
Cash, Cash Equivalents and Short-Term Investments4.92B4.92B5.42B4.35B4.83B4.06B
Total Debt13.88B13.88B12.83B12.54B12.49B14.30B
Total Liabilities26.45B26.45B26.32B24.58B25.96B25.35B
Stockholders Equity15.24B15.24B14.70B14.03B13.48B11.50B
Cash Flow
Free Cash Flow0.00-613.00M2.45B116.00M2.44B2.89B
Operating Cash Flow0.001.80B4.18B1.01B3.36B4.21B
Investing Cash Flow0.00-2.76B-1.74B-54.00M-217.00M-1.30B
Financing Cash Flow0.00500.00M-1.65B-1.57B-2.65B-2.42B

Tomoegawa Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price814.00
Price Trends
50DMA
737.24
Positive
100DMA
704.28
Positive
200DMA
700.31
Positive
Market Momentum
MACD
24.83
Negative
RSI
67.31
Neutral
STOCH
68.11
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 814 is above the 20-day moving average (MA) of 779.85, above the 50-day MA of 737.24, and above the 200-day MA of 700.31, indicating a bullish trend. The MACD of 24.83 indicates Negative momentum. The RSI at 67.31 is Neutral, neither overbought nor oversold. The STOCH value of 68.11 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥9.34B10.093.51%3.92%3.23%-13.74%
75
Outperform
¥23.62B19.773.09%3.96%3.05%-63.52%
72
Outperform
¥6.04B5.2210.26%2.45%-2.18%-19.34%
71
Outperform
¥8.23B11.811.84%1.75%19.70%
53
Neutral
¥3.89B-51.350.67%13.57%62.43%
53
Neutral
¥3.52B-116.640.35%1.61%-2.77%-112.57%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3878
Tomoegawa Corporation
814.00
85.84
11.79%
JP:3513
Ichikawa Co., Ltd.
2,040.00
423.83
26.22%
JP:3877
Chuetsu Pulp & Paper Co., Ltd.
1,769.00
525.70
42.28%
JP:3896
AWA PAPER & TECHNOLOGICAL COMPANY, Inc.
390.00
-56.00
-12.56%
JP:7808
C.S. LUMBER CO.,INC
3,265.00
257.18
8.55%
JP:7897
Hokushin Co., Ltd.
124.00
19.88
19.09%
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: Jul 31, 2025