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Towa Corporation (JP:6315)
:6315
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Towa Corporation (6315) AI Stock Analysis

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JP:6315

Towa Corporation

(Frankfurt:6315)

Rating:75Outperform
Price Target:
¥2,144.00
▲(18.45% Upside)
Towa Corporation's stock score is driven by strong financial performance and positive technical indicators, reflecting robust profitability, efficient operations, and upward market momentum. Valuation is reasonable, adding moderate income potential through dividends. Elevated volatility, indicated by a high beta, poses some risk.

Towa Corporation (6315) vs. iShares MSCI Japan ETF (EWJ)

Towa Corporation Business Overview & Revenue Model

Company DescriptionTowa Corporation, listed under the ticker 6315, is a Japanese company primarily engaged in the manufacture of semiconductor manufacturing equipment. The company specializes in developing and supplying advanced packaging systems, including molding equipment and singulation equipment, which are critical for semiconductor production. Towa Corporation serves a global clientele, contributing to the semiconductor industry's advancements by providing high-precision, reliable, and efficient manufacturing solutions.
How the Company Makes MoneyTowa Corporation generates revenue through the sale of its semiconductor manufacturing equipment, which includes molding and singulation machines. These machines are essential for semiconductor packaging and are used by semiconductor manufacturers worldwide. The company's revenue model is heavily reliant on the demand from the semiconductor industry, which is driven by technological advancements and the growing need for electronic devices. Additionally, Towa Corporation may engage in service contracts and maintenance agreements, providing after-sales support and service to its clients. Strategic partnerships with leading semiconductor manufacturers and continuous innovation in its product offerings further bolster its revenue streams.

Towa Corporation Financial Statement Overview

Summary
Towa Corporation exhibits strong financial performance with consistent revenue growth, robust profitability margins, and efficient operations. The company maintains a low debt-to-equity ratio, indicating reduced financial risk, and a strong liquidity position despite slight fluctuations in revenue and asset values.
Income Statement
85
Very Positive
Towa Corporation demonstrates strong financial performance with a consistent revenue growth rate of approximately 6% from 2024 to 2025. The gross profit margin stands at 37.2% for 2025, indicating efficient cost management. The net profit margin of 15.2% further underscores profitability. EBIT and EBITDA margins are robust at 16.6% and 26.4%, respectively, showcasing solid operational efficiency. However, slight declines in revenue from 2023 to 2024 should be monitored for potential future impact.
Balance Sheet
80
Positive
The balance sheet reveals a strong financial position with a debt-to-equity ratio of 0.16, indicating low leverage and reduced financial risk. The equity ratio is solid at 73.7%, reflecting substantial equity backing. The return on equity (ROE) is impressive at 13.2%, demonstrating effective use of equity to generate profits. While the total assets decreased slightly in 2025, the company maintains a healthy liquidity position.
Cash Flow
78
Positive
Towa Corporation's cash flow statement shows a positive trajectory, with a free cash flow of 5.3 billion JPY in 2025. The operating cash flow to net income ratio of 1.28 indicates strong cash conversion from profits. Although the free cash flow decreased from the previous year, the company maintains positive cash flow, supporting operations and growth initiatives.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue53.48B50.47B53.82B50.67B29.71B
Gross Profit19.91B18.20B18.81B18.65B9.62B
EBITDA14.12B11.87B12.87B13.71B5.50B
Net Income8.12B6.44B7.35B8.13B2.66B
Balance Sheet
Total Assets83.23B87.86B73.47B71.33B51.79B
Cash, Cash Equivalents and Short-Term Investments21.34B20.83B16.55B12.41B10.69B
Total Debt10.06B14.02B15.87B10.42B7.81B
Total Liabilities21.84B29.43B25.85B30.21B20.29B
Stockholders Equity61.39B58.44B47.22B40.73B31.18B
Cash Flow
Free Cash Flow5.33B8.00B99.81M1.13B2.62B
Operating Cash Flow10.37B9.67B2.83B6.40B5.31B
Investing Cash Flow-4.76B-2.77B-2.75B-6.60B-2.77B
Financing Cash Flow-5.13B-3.52B3.96B1.93B-2.24B

Towa Corporation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1810.00
Price Trends
50DMA
1791.14
Positive
100DMA
1611.63
Positive
200DMA
1664.39
Positive
Market Momentum
MACD
5.52
Positive
RSI
45.58
Neutral
STOCH
26.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6315, the sentiment is Neutral. The current price of 1810 is below the 20-day moving average (MA) of 1893.70, above the 50-day MA of 1791.14, and above the 200-day MA of 1664.39, indicating a neutral trend. The MACD of 5.52 indicates Positive momentum. The RSI at 45.58 is Neutral, neither overbought nor oversold. The STOCH value of 26.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:6315.

Towa Corporation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
¥135.98B16.9513.50%1.10%5.96%26.04%
57
Neutral
HK$14.02B9.25-2.83%4.87%9.29%-48.65%
$1.18B11.577.01%
72
Outperform
¥167.77B17.75
3.24%18.61%30.56%
67
Neutral
¥209.75B4.12
0.38%-48.30%
¥202.81B22.08
1.32%
81
Outperform
¥150.09B16.69
2.33%9.00%-50.84%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6315
Towa Corporation
1,810.00
-409.73
-18.46%
FRRZF
Ferrotec Holdings
25.12
12.80
103.90%
JP:5384
Fujimi Incorporated
2,204.00
-85.54
-3.74%
JP:6707
Sanken Electric Co., Ltd.
8,690.00
2,431.00
38.84%
JP:6871
Micronics Japan Co., Ltd.
5,280.00
234.68
4.65%
JP:6966
Mitsui High-Tec, Inc.
772.00
-182.04
-19.08%

Towa Corporation Corporate Events

Towa Corporation Issues New Shares for Executive Incentives
Jul 24, 2025

Towa Corporation has announced the issuance of new shares as restricted stock compensation, a move aimed at incentivizing its directors and executive officers to enhance corporate value. This initiative involves the allocation of 16,811 shares to select directors and executive officers, with a total issuance amounting to 32,646,962 yen. The restricted stock compensation plan is designed to align the interests of the company’s leadership with those of its shareholders, potentially impacting the company’s operational strategies and market positioning.

The most recent analyst rating on (JP:6315) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Towa Corporation stock, see the JP:6315 Stock Forecast page.

Towa Corporation Reports Increased Sales and Profit for FY 2025
May 9, 2025

Towa Corporation reported a 6% increase in net sales for the fiscal year ending March 31, 2025, with a notable 26% rise in profit attributable to owners of the parent. Despite a decrease in comprehensive income by 68.2%, the company maintained a strong equity-to-asset ratio of 73.8%. The financial results indicate a positive trajectory in sales and profitability, although challenges remain in maintaining comprehensive income levels.

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 05, 2025