TOW Co., Ltd. (4767) AI Stock Analysis

• Market Cap: ¥17.23B
• Dividend Yield: 3.96%
• Average Volume (3M): 88.49K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.56
• Revenue Growth: 3.83%
• EPS Growth: -18.07%
• Country: JP
• Employees: 263
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 5.86
• Shares Outstanding: 48,969,097
• 10 Day Avg. Volume: 100,950
• 30 Day Avg. Volume: 88,486
• PEG Ratio: -0.56
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.71
• P/FCF Ratio: 19.98
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ¥411.00 ▲(7.31% Upside)

TOW Co., Ltd. scores well due to its strong financial performance and attractive valuation. While technical indicators show mixed signals, the company's solid balance sheet and reasonable valuation support a positive outlook. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

Low leverage and a robust equity base enhance financial stability, providing flexibility for future investments and growth opportunities.

Cash Generation Ability

Positive free cash flow ensures the company can sustain operations, invest in growth, and weather economic fluctuations, supporting long-term viability.

Negative Factors

Profit Margin Pressure

Decreasing net profit margins suggest rising operational costs or inefficiencies, potentially impacting profitability and financial performance over time.

Operating Cash Flow Decline

A decline in operating cash flow can constrain the company's ability to finance day-to-day operations and invest in growth, affecting long-term sustainability.

EPS Growth Decline

Negative EPS growth reflects challenges in maintaining profitability, which could hinder investor confidence and the company's ability to reinvest in its business.

TOW Co., Ltd. Business Overview & Revenue Model

Company Description

TOW Co., Ltd. engages in planning, producing, constructing, creating, and managing events and seminars primarily in Japan. The company is also involved in the construction of buildings and erection of other structures, interior decoration, and electrical installation work on contract for promotional and other events. In addition, it plans and produces advertising and public relations events, and sales promotion campaigns; and plans and publishes exhibitions and interior decorations. Further, the company is involved in the planning, production, sale, and import/export of advertisements, promotional goods, and premiums related to sales promotion; and planning, production, and publishing of various printed matters. The company was founded in 1976 and is headquartered in Tokyo, Japan.

How the Company Makes Money

TOW Co., Ltd. generates revenue through a multi-faceted approach that includes the sale of its core products, which range from chemical compounds to specialized plastics. The company leverages a strong B2B model, supplying its products to large manufacturers and industrial clients. Key revenue streams include direct sales to customers, long-term contracts with major industry players, and potential licensing agreements for its proprietary technologies. Additionally, TOW Co., Ltd. benefits from strategic partnerships with other firms in related sectors, enabling collaborative development and distribution of products. This diversified approach not only stabilizes revenue but also allows the company to adapt to market changes and demand fluctuations.

TOW Co., Ltd. Financial Statement Overview

Summary

TOW Co., Ltd. demonstrates strong revenue growth and a solid balance sheet with low leverage. Profitability margins have faced some pressure, but the company's financial health remains robust with a strong equity base and positive cash flow generation.

Income Statement

TOW Co., Ltd. has shown a consistent revenue growth rate of 6.18% in the latest year, indicating strong market demand. Gross profit margin has improved to 17.83%, reflecting efficient cost management. However, the net profit margin decreased to 6.37% from the previous year, suggesting increased operational costs or other expenses impacting net income.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.06, indicating low leverage and financial stability. The return on equity (ROE) is robust at 11.44%, showcasing effective use of equity to generate profits. The equity ratio stands at 69.57%, highlighting a solid capital structure with a majority of assets financed by equity.

Cash Flow

Operating cash flow has decreased significantly, but free cash flow remains positive, indicating the company can still fund operations and investments. The free cash flow to net income ratio is 0.56, suggesting a moderate conversion of net income into cash. The free cash flow growth rate is notably high, reflecting improved cash generation capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.78B	17.78B	17.50B	11.77B	11.13B	12.21B
Gross Profit	3.17B	3.17B	2.94B	1.90B	1.73B	1.47B
EBITDA	1.68B	1.68B	2.11B	609.35M	989.49M	780.93M
Net Income	1.13B	1.13B	1.41B	355.70M	598.49M	455.88M
Balance Sheet
Total Assets	14.22B	14.22B	14.09B	11.19B	13.76B	13.42B
Cash, Cash Equivalents and Short-Term Investments	8.13B	8.13B	8.45B	5.78B	8.59B	7.58B
Total Debt	613.19M	613.19M	840.00M	840.00M	840.00M	840.00M
Total Liabilities	4.33B	4.33B	4.78B	2.77B	3.22B	3.10B
Stockholders Equity	9.89B	9.89B	9.30B	8.43B	10.54B	10.32B
Cash Flow
Free Cash Flow	0.00	633.67M	3.38B	-751.89M	1.53B	3.18B
Operating Cash Flow	0.00	733.13M	3.40B	-717.61M	1.56B	3.39B
Investing Cash Flow	0.00	-91.44M	-44.90M	211.76M	-24.62M	-206.21M
Financing Cash Flow	0.00	-966.59M	-678.94M	-2.30B	-520.77M	-657.47M

TOW Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 383.00
• 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:4767, the sentiment is Positive. The current price of 383 is above the 20-day moving average (MA) of 376.10, above the 50-day MA of 376.54, and above the 200-day MA of 341.06, indicating a bullish trend. The MACD of 1.40 indicates Negative momentum. The RSI at 58.43 is Neutral, neither overbought nor oversold. The STOCH value of 78.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:4767.

TOW Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2411	74 Outperform	¥5.55B	10.98	―	4.65%	5.94%	617.63%
4767	73 Outperform	¥17.23B	13.68	―	3.96%	3.83%	-18.07%
6045	68 Neutral	¥12.55B	18.89	―	2.19%	14.43%	10.99%
2491	67 Neutral	¥22.26B	4.96	―	7.85%	-3.20%	34.08%
2130	66 Neutral	¥16.88B	18.64	―	2.51%	10.17%	327.27%
2389	63 Neutral	¥32.14B	25.44	―	2.14%	-22.10%	-16.33%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%