Towa Corporation (6315) AI Stock Analysis

• Market Cap: €125.19B
• Dividend Yield: 1.2%
• Average Volume (3M): 3.57M
• Price to Earnings (P/E): 21.2
• Beta (1Y): 1.95
• Revenue Growth: -10.90%
• EPS Growth: -19.72%
• Country: JP
• Employees: 1,985
• Sector: Technology
• Sector Strength: 85
• Industry: Semiconductors
• EPS (TTM): -7.05
• Shares Outstanding: 75,157,364
• 10 Day Avg. Volume: 2,650,610
• 30 Day Avg. Volume: 3,574,823
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €2,401.78
• Price Target Upside: 44.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥1,909.00 ▲(14.59% Upside)

Towa Corporation's stock score is primarily driven by its strong financial performance, characterized by consistent revenue growth and robust profitability. However, technical analysis indicates bearish momentum, and the valuation is reasonable but not compelling. These factors contribute to a moderate overall stock score.

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 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

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

Towa Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1666.00
• 50DMA: Negative
• 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 Negative. The current price of 1666 is below the 20-day moving average (MA) of 1750.05, below the 50-day MA of 1837.60, and above the 200-day MA of 1645.90, indicating a neutral trend. The MACD of -51.71 indicates Positive momentum. The RSI at 40.02 is Neutral, neither overbought nor oversold. The STOCH value of 20.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6315.

Towa Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6315	66 Neutral	€125.19B	21.17	10.40%	1.20%	-10.90%	-19.72%
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
FRRZF	―	$1.19B	13.10	6.22%	―	―	―
5384	72 Outperform	¥163.13B	17.26		3.46%	21.20%	36.43%
6707	67 Neutral	¥206.59B	3.92		0.38%	-58.24%	―
6871	―	¥176.88B	17.53		1.50%	―	―
6966	81 Outperform	¥164.67B	18.41		2.13%	9.00%	-50.84%

Towa Corporation Corporate Events

Towa Corporation Reports Significant Financial Decline in Q1 2025

Towa Corporation reported a significant decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 39% compared to the previous year. The company experienced operating and ordinary losses, reflecting challenges in the semiconductor industry and impacting stakeholders’ expectations.

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 Issues New Shares for Executive Incentives

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.