Howa Machinery, Ltd. (JP:6203)
:6203
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Howa Machinery, Ltd.
(6203)
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Rating:62Neutral
Price Target:
¥2,043.00
▲(71.39% Upside)
Action:Reiterated
Date:06/03/26
The score is driven primarily by mixed financial performance (recovered profitability but uneven revenue and historically volatile cash flow). Technicals add meaningful support due to strong momentum and trend strength, while valuation is a notable headwind given the high P/E and low dividend yield.
Positive Factors
Manageable leverage
Material deleveraging and equity growth improve financial flexibility for a capital‑intensive machinery maker. Lower debt-to-equity reduces refinancing and interest risk, enabling steadier capex funding and support for service/customer investments over the medium term.
Negative Factors
Inconsistent revenue trends
Volatile and declining revenue undermines scale economics for a fixed‑cost manufacturing business. Without stable top‑line growth, margin expansion and returns on capital will be hard to sustain; persistent demand weakness increases risk to medium‑term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable leverage
Material deleveraging and equity growth improve financial flexibility for a capital‑intensive machinery maker. Lower debt-to-equity reduces refinancing and interest risk, enabling steadier capex funding and support for service/customer investments over the medium term.
Read all positive factors
Howa Machinery, Ltd. (6203) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥22.55B
Dividend Yield1.73%
Average Volume (3M)467.53K
Price to Earnings (P/E)29.6
Beta (1Y)1.30
Revenue Growth-3.07%
EPS Growth-1.15%
CountryJP
Employees755
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)74.13
Shares Outstanding12,548,134
10 Day Avg. Volume460,380
30 Day Avg. Volume467,533
Financial Highlights & Ratios
PEG Ratio-19.81
Price to Book (P/B)0.81
Price to Sales (P/S)0.71
P/FCF Ratio3.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)107.7
Revenue Forecast (FY)¥23.00B
Howa Machinery, Ltd. Business Overview & Revenue Model
Company Description
Howa Machinery, Ltd. provides machine tools, pneumatic and hydraulic equipment, electronic machines, sweepers, metal joinery fittings, and firearms in Japan. The company's machine tools include machining centers, transfer lines, and standard machi...
How the Company Makes Money
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Howa Machinery, Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
70
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.46B | 24.06B | 24.83B | 19.79B | 19.74B | 19.70B |
| Gross Profit | 4.49B | 4.23B | 4.20B | 3.49B | 3.63B | 3.96B |
| EBITDA | 2.14B | 1.78B | 1.72B | -189.00M | 1.14B | 1.42B |
| Net Income | 894.00M | 741.00M | 749.00M | -873.00M | 524.00M | 1.06B |
Balance Sheet | ||||||
| Total Assets | 34.44B | 35.83B | 34.05B | 30.29B | 27.62B | 27.67B |
| Cash, Cash Equivalents and Short-Term Investments | 5.71B | 6.19B | 2.92B | 3.90B | 3.33B | 4.42B |
| Total Debt | 7.73B | 6.76B | 7.97B | 6.24B | 3.52B | 3.27B |
| Total Liabilities | 15.64B | 14.80B | 15.31B | 12.95B | 10.27B | 10.78B |
| Stockholders Equity | 18.79B | 21.02B | 18.74B | 17.33B | 17.35B | 16.89B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 4.53B | -2.32B | -2.23B | -1.14B | 2.38B |
| Operating Cash Flow | 0.00 | 4.81B | 55.00M | -1.07B | -506.00M | 3.05B |
| Investing Cash Flow | 0.00 | -120.00M | -2.55B | -871.00M | -608.00M | -544.00M |
| Financing Cash Flow | 0.00 | -1.44B | 1.49B | 2.48B | 22.00M | -1.61B |
Howa Machinery, Ltd. Technical Analysis
Positive
1192.00
Price Trends
1499.45
Positive
1531.89
Positive
1394.04
Positive
Market Momentum
91.88
Negative
63.02
Neutral
68.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6203, the sentiment is Positive. The current price of 1192 is below the 20-day moving average (MA) of 1521.10, below the 50-day MA of 1499.45, and below the 200-day MA of 1394.04, indicating a bullish trend. The MACD of 91.88 indicates Negative momentum. The RSI at 63.02 is Neutral, neither overbought nor oversold. The STOCH value of 68.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6203.
Howa Machinery, Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥351.00B | 16.17 | 7.67% | 0.91% | 11.51% | 46.17% | |
74 Outperform | ¥100.84B | 18.23 | 7.00% | 3.02% | 8.49% | -0.33% | |
73 Outperform | ¥55.40B | 14.14 | ― | 2.54% | 3.47% | -12.26% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥22.55B | 29.60 | ― | 1.73% | -3.07% | -1.15% | |
62 Neutral | ¥35.29B | 28.29 | ― | 3.56% | -2.79% | -35.37% | |
52 Neutral | ¥93.64B | 29.26 | 5.02% | 3.23% | -21.03% | -91.77% |
* Industrials Sector Average
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Howa Machinery, Ltd. Corporate Events
Howa Machinery Posts Slight Profit Dip but Strengthens Balance Sheet and Cash Position
May 15, 2026
Howa Machinery, Ltd. reported consolidated net sales of ¥24.06 billion for the fiscal year ended March 2026, a 3.1% decline from the prior year, with operating profit slipping 5.3% to ¥1.19 billion and profit attributable to owners of pa...
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.