Towa Corporation (6315) AI Stock Analysis

• Market Cap: €173.06B
• Dividend Yield: 0.95%
• Average Volume (3M): 6.94M
• Price to Earnings (P/E): 29.3
• Beta (1Y): 2.07
• Revenue Growth: -12.50%
• EPS Growth: -26.08%
• Country: JP
• Employees: 1,985
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 31.71
• Shares Outstanding: 75,157,364
• 10 Day Avg. Volume: 5,118,940
• 30 Day Avg. Volume: 6,944,783
• PEG Ratio: 0.53
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 20.92
• 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: €1,053.29
• Price Target Upside: -53.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: ¥2,535.00 ▲(13.12% Upside)

Towa Corporation's strong financial performance and positive technical indicators are the primary drivers of its stock score. The company's robust profitability, efficient operations, and solid balance sheet position it well for future growth. However, the high valuation presents a potential risk, as it may limit upside potential. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Towa Corporation Business Overview & Revenue Model

Company Description

Towa Corporation (6315) is a Japanese company primarily involved in the manufacturing of semiconductor packaging solutions and related technologies. The company operates in the electronics sector, focusing on providing advanced packaging systems that cater to a variety of industries, including consumer electronics, automotive, and telecommunications. Towa's core products include semiconductor mold packages, automatic molding machines, and other related equipment, which are essential for the production and assembly of electronic components.

How the Company Makes Money

Towa Corporation generates revenue through the sale of its semiconductor packaging equipment and solutions, which is a significant part of its business model. The company primarily earns money by selling its automatic molding machines and related products to semiconductor manufacturers, who utilize these machines to produce packaging for various electronic components. Additionally, Towa benefits from after-sales services, including maintenance and support, which further contributes to its revenue. The company has established partnerships with key players in the semiconductor industry, enhancing its market reach and facilitating consistent demand for its products. Factors such as advancements in technology, the growing demand for miniaturized electronic devices, and the expansion of the global semiconductor market play crucial roles in driving Towa's earnings.

Towa Corporation Financial Statement Overview

Summary

Towa Corporation displays strong financial performance with consistent revenue growth, robust profit margins, and a solid balance sheet. The company effectively manages leverage and maintains positive cash flow, positioning it well for future growth. However, slight revenue and asset fluctuations should be monitored.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.31B	53.48B	50.47B	53.82B	50.67B	29.71B
Gross Profit	17.29B	19.91B	18.20B	18.81B	18.65B	9.62B
EBITDA	9.39B	14.12B	11.87B	12.87B	13.71B	5.50B
Net Income	5.90B	8.12B	6.44B	7.35B	8.13B	2.66B
Balance Sheet
Total Assets	86.62B	83.23B	87.86B	73.47B	71.33B	51.79B
Cash, Cash Equivalents and Short-Term Investments	23.61B	21.34B	20.83B	16.55B	12.41B	10.69B
Total Debt	13.21B	10.06B	14.02B	15.87B	10.42B	7.81B
Total Liabilities	26.38B	21.84B	29.43B	25.85B	30.21B	20.29B
Stockholders Equity	60.24B	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: Neutral
• Last Price: 2241.00
• 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 Neutral. The current price of 2241 is below the 20-day moving average (MA) of 2328.00, above the 50-day MA of 2208.78, and above the 200-day MA of 1785.33, indicating a neutral trend. The MACD of 67.98 indicates Positive momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 25.03 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5384	77 Outperform	¥190.00B	20.10	―	3.02%	14.85%	29.86%
6890	75 Outperform	$231.59B	17.08	5.41%	3.56%	11.15%	-19.39%
6966	75 Outperform	¥140.17B	15.02	―	2.37%	6.31%	-37.42%
6315	74 Outperform	€173.06B	29.27	10.10%	0.95%	-12.50%	-26.08%
6871	64 Neutral	¥346.47B	35.21	―	1.09%	29.60%	24.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6707	46 Neutral	¥142.54B	3.27	―	―	-51.82%	-96.08%

Towa Corporation Corporate Events

Towa Corporation Exceeds Profit Forecasts for FY2025 Q2

Towa Corporation reported a positive variance between its forecasted and actual results for the second quarter of the fiscal year ending March 31, 2026. The company achieved higher profits than expected due to an improved profit margin driven by an increased sales ratio of high value-added products, indicating a strong operational performance.

The most recent analyst rating on (JP:6315) stock is a Buy with a Yen2535.00 price target. To see the full list of analyst forecasts on Towa Corporation stock, see the JP:6315 Stock Forecast page.

Towa Corporation Reports Decline in Semi-Annual Financial Results

Towa Corporation reported a significant decline in its consolidated financial results for the six months ending September 30, 2025, with net sales dropping by 14.4% and operating profit falling by 52.6% compared to the previous year. Despite the downturn, the company maintains a strong equity-to-asset ratio of 70.1%, indicating a solid financial position, and forecasts a modest recovery in sales and profits for the fiscal year ending March 31, 2026.

The most recent analyst rating on (JP:6315) stock is a Buy with a Yen2535.00 price target. To see the full list of analyst forecasts on Towa Corporation stock, see the JP:6315 Stock Forecast page.

Towa Corporation Completes New Share Issuance for Stock Compensation

Towa Corporation has successfully completed the payment procedures for issuing new shares as restricted stock compensation, a decision made by its Board of Directors on July 24, 2025. This issuance involves 16,811 shares at a price of 1,942 yen per share, totaling 32,646,962 yen, and is allocated to select directors and executive officers, potentially impacting the company’s governance and aligning management interests with shareholder value.

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.