Tomoegawa Corporation (3878) AI Stock Analysis

• Market Cap: ¥8.23B
• Dividend Yield: 1.84%
• Average Volume (3M): 18.97K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.91
• Revenue Growth: 1.75%
• EPS Growth: 19.70%
• Country: JP
• Employees: 1,305
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 30.06
• Shares Outstanding: 10,389,406
• 10 Day Avg. Volume: 26,640
• 30 Day Avg. Volume: 18,966
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ¥781.00
• Price Target Upside: -4.05% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• 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 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 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

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	34.43B	34.43B	33.69B	34.17B	32.78B	30.77B
Gross Profit	7.87B	7.87B	7.37B	7.53B	6.76B	4.99B
EBITDA	3.41B	3.41B	3.24B	4.24B	4.52B	1.43B
Net Income	750.00M	750.00M	594.00M	1.45B	1.65B	-1.15B
Balance Sheet
Total Assets	46.09B	46.09B	45.71B	42.95B	43.57B	40.66B
Cash, Cash Equivalents and Short-Term Investments	4.92B	4.92B	5.42B	4.35B	4.83B	4.06B
Total Debt	13.88B	13.88B	12.83B	12.54B	12.49B	14.30B
Total Liabilities	26.45B	26.45B	26.32B	24.58B	25.96B	25.35B
Stockholders Equity	15.24B	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: 814.00
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3513	75 Outperform	¥9.34B	10.09	3.51%	3.92%	3.23%	-13.74%
3877	75 Outperform	¥23.62B	19.77	3.09%	3.96%	3.05%	-63.52%
7808	72 Outperform	¥6.04B	5.22	10.26%	2.45%	-2.18%	-19.34%
3878	71 Outperform	¥8.23B	11.81	―	1.84%	1.75%	19.70%
3896	53 Neutral	¥3.89B	-51.35	0.67%	―	13.57%	62.43%
7897	53 Neutral	¥3.52B	-116.64	0.35%	1.61%	-2.77%	-112.57%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%