Howa Machinery, Ltd. (JP:6203)
:6203
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Howa Machinery, Ltd.
(6203)
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Rating:65Neutral
Price Target:
¥1,875.00
▲(57.30% Upside)
Action:ReiteratedDate:02/11/26
The score is driven primarily by improving financial performance (strong revenue growth and recovering margins) but held back by weak cash flow conversion and negative free cash flow. Technically, the stock shows strong trend momentum above key moving averages, though overbought signals add near-term risk. Valuation is the main downside, with a high P/E and only modest dividend support.
Positive Factors
Revenue growth
A 25.5% year-over-year revenue gain signals durable demand and expanding commercial traction in core machine-tool and production-equipment markets. Sustained top-line growth supports reinvestment in capacity and product development, strengthening medium-term competitive position.
Negative Factors
Negative free cash flow
Persistent negative free cash flow constrains the firm's ability to fund capex, pay down debt, or return cash to shareholders without external financing. Over the medium term this impairs financial flexibility and increases reliance on working capital improvements or capital raises to sustain growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth
A 25.5% year-over-year revenue gain signals durable demand and expanding commercial traction in core machine-tool and production-equipment markets. Sustained top-line growth supports reinvestment in capacity and product development, strengthening medium-term competitive position.
Read all positive factors
Howa Machinery, Ltd. (6203) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥18.13B
Dividend Yield1.73%
Average Volume (3M)467.53K
Price to Earnings (P/E)8.1
Beta (1Y)1.23
Revenue Growth26.09%
EPS GrowthN/A
CountryJP
Employees755
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)36.75
Shares Outstanding12,548,134
10 Day Avg. Volume460,380
30 Day Avg. Volume467,533
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)0.80
Price to Sales (P/S)0.60
P/FCF Ratio-6.42
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)22.4
Revenue Forecast (FY)¥23.60B
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
72
Positive
Balance Sheet
65
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.46B | 24.83B | 19.79B | 19.74B | 19.70B | 18.77B |
| Gross Profit | 4.49B | 4.20B | 3.49B | 3.63B | 3.96B | 3.48B |
| EBITDA | 2.14B | 1.72B | -189.00M | 1.14B | 1.42B | 1.41B |
| Net Income | 894.00M | 749.00M | -873.00M | 524.00M | 1.06B | 968.00M |
Balance Sheet | ||||||
| Total Assets | 34.44B | 34.05B | 30.29B | 27.62B | 27.67B | 26.46B |
| Cash, Cash Equivalents and Short-Term Investments | 5.71B | 2.92B | 3.90B | 3.33B | 4.42B | 3.46B |
| Total Debt | 7.73B | 7.97B | 6.24B | 3.52B | 3.27B | 4.15B |
| Total Liabilities | 15.64B | 15.31B | 12.95B | 10.27B | 10.78B | 10.34B |
| Stockholders Equity | 18.79B | 18.74B | 17.33B | 17.35B | 16.89B | 16.11B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -2.32B | -2.23B | -1.14B | 2.38B | -2.02B |
| Operating Cash Flow | 0.00 | 55.00M | -1.07B | -506.00M | 3.05B | -1.27B |
| Investing Cash Flow | 0.00 | -2.55B | -871.00M | -608.00M | -544.00M | -635.00M |
| Financing Cash Flow | 0.00 | 1.49B | 2.48B | 22.00M | -1.61B | 1.88B |
Howa Machinery, Ltd. Technical Analysis
Negative
1192.00
Price Trends
1608.86
Negative
1417.40
Positive
1302.12
Positive
Market Momentum
-19.67
Positive
37.01
Neutral
1.93
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6203, the sentiment is Negative. The current price of 1192 is below the 20-day moving average (MA) of 1725.10, below the 50-day MA of 1608.86, and below the 200-day MA of 1302.12, indicating a neutral trend. The MACD of -19.67 indicates Positive momentum. The RSI at 37.01 is Neutral, neither overbought nor oversold. The STOCH value of 1.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | ¥81.20B | 136.93 | 5.02% | 3.23% | -10.00% | -51.92% | |
74 Outperform | ¥58.17B | 24.26 | ― | 2.54% | 2.00% | 39.80% | |
69 Neutral | ¥64.04B | 10.78 | 7.00% | 3.02% | 15.78% | ― | |
65 Neutral | ¥18.13B | 8.12 | ― | 1.73% | 26.09% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | ¥26.60B | -53.89 | ― | 3.56% | -3.85% | -45.64% | |
61 Neutral | ¥278.18B | 8.88 | 7.67% | 0.91% | 9.03% | 10.76% |
* Industrials Sector Average
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Howa Machinery, Ltd. Corporate Events
Howa Machinery Posts Lower Profits but Stronger Balance Sheet in Q3 FY2025
Feb 12, 2026
Howa Machinery, Ltd. reported consolidated net sales of ¥16.8 billion for the quarter ended December 2025, a modest 1.5% increase from a year earlier, while operating profit fell 21.6% to ¥810 million and profit attributable to owners of...
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.