Towa Corporation (6315) AI Stock Analysis

• Market Cap: ¥145.82B
• Dividend Yield: 1.03%
• Average Volume (3M): 4.93M
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.99
• Revenue Growth: 5.96%
• EPS Growth: 26.04%
• Country: JP
• Employees: 1,985
• Sector: Technology
• Sector Strength: 91
• Industry: Semiconductors
• EPS (TTM): 39.58
• Shares Outstanding: 75,140,560
• 10 Day Avg. Volume: 5,560,910
• 30 Day Avg. Volume: 4,925,923
• PEG Ratio: -0.25
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 174.95
• 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: ¥1,896.17
• Price Target Upside: -2.31% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 75 Outperform
• Price Target: ¥2,144.00 ▲(10.46%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 Business Overview & Revenue Model

Company Description

TOWA Corporation designs, develops, manufactures, and sells semiconductor manufacturing equipment and high-precision molds in Japan and internationally. The company's products include molding equipment, singulation equipment, ultra-precision molds, THPL-CBN end mills, and TEN-systems. It also sells used equipment. The company was formerly known as TOWA Precision Industries Limited and changed its name to TOWA Corporation in December 1988. TOWA Corporation was incorporated in 1979 and is headquartered in Kyoto, Japan.

How the Company Makes Money

Towa Corporation generates revenue through the sale of its semiconductor manufacturing equipment, which includes molding equipment and singulation equipment. These machines are essential for semiconductor packaging, a critical step in the production of electronic devices. The company's revenue model is based on direct sales of these high-value machines to semiconductor manufacturers and electronics companies worldwide. Additionally, Towa Corporation may earn income through maintenance services, spare parts, and technology licensing agreements. Strategic partnerships with key players in the semiconductor industry can also contribute to its earnings by expanding its market reach and enhancing its product offerings.

Towa Corporation Financial Statement Overview

Summary

Towa Corporation displays a well-rounded financial performance with strong profitability, efficient operations, and a solid balance sheet. The company effectively manages its leverage while generating consistent revenue growth and maintaining positive cash flow. Potential risks include slight fluctuations in revenue and asset values, but overall, the company is well-positioned for future growth in the semiconductors industry.

Income Statement

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

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

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.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	57.70B	53.48B	50.47B	53.82B	50.67B	29.71B
Gross Profit	21.82B	19.91B	18.20B	18.81B	18.65B	9.62B
EBITDA	12.70B	14.12B	11.87B	12.87B	13.71B	5.50B
Net Income	8.48B	8.12B	6.44B	7.35B	8.13B	2.66B
Balance Sheet
Total Assets	86.46B	83.23B	87.86B	73.47B	71.33B	51.79B
Cash, Cash Equivalents and Short-Term Investments	22.18B	21.34B	20.83B	16.55B	12.41B	10.69B
Total Debt	11.77B	10.06B	14.02B	15.87B	10.42B	7.81B
Total Liabilities	25.17B	21.84B	29.43B	25.85B	30.21B	20.29B
Stockholders Equity	61.29B	61.39B	58.44B	47.22B	40.73B	31.18B
Cash Flow
Free Cash Flow	0.00	5.33B	8.00B	99.81M	1.13B	2.62B
Operating Cash Flow	0.00	10.37B	9.67B	2.83B	6.40B	5.31B
Investing Cash Flow	0.00	-4.76B	-2.77B	-2.75B	-6.60B	-2.77B
Financing Cash Flow	0.00	-5.13B	-3.52B	3.96B	1.93B	-2.24B

Towa Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1941.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6315, the sentiment is Positive. The current price of 1941 is above the 20-day moving average (MA) of 1867.60, above the 50-day MA of 1659.84, and above the 200-day MA of 1677.22, indicating a bullish trend. The MACD of 76.30 indicates Positive momentum. The RSI at 60.32 is Neutral, neither overbought nor oversold. The STOCH value of 22.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6315.

Towa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6315	75 Outperform	¥145.82B	17.93	13.50%	1.03%	5.96%	26.04%
Sector *	63 Neutral	$33.91B	5.95	-11.88%	1.83%	5.33%	-18.39%
FRRZF	―	$1.02B	9.91	7.01%	5.37%	―	―
5384	72 Outperform	¥157.49B	16.28		3.54%	18.61%	30.56%
6707	67 Neutral	¥216.58B	4.25		0.38%	-48.30%	―
6871	―	¥206.65B	22.54		1.30%	―	―
6966	75 Outperform	¥138.82B	15.52		3.36%	9.00%	-50.84%

Towa Corporation Corporate Events

Towa Corporation Reports Increased Sales and Profit for FY 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.