Towa Corporation (6315) AI Stock Analysis

• Market Cap: €158.93B
• Dividend Yield: 0.84%
• Average Volume (3M): 6.94M
• Price to Earnings (P/E): 25.7
• Beta (1Y): 2.00
• Revenue Growth: -10.90%
• EPS Growth: -19.72%
• Country: JP
• Employees: 1,985
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -7.05
• 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: €1,051.60
• Price Target Upside: -55.72% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: ¥2,535.00 ▲(6.74% Upside)

Towa Corporation's stock is supported by strong financial performance and positive technical indicators, suggesting a stable and potentially growing investment. However, the high P/E ratio indicates a premium valuation, which could limit upside potential. The absence of earnings call and corporate event data does not impact the current assessment.

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 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 demonstrates strong financial performance with consistent revenue growth, efficient cost management, and robust profitability. The company maintains a solid balance sheet with low leverage and strong equity backing. Despite slight fluctuations in revenue and asset values, the overall financial health is strong, supporting future growth.

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	53.48B	53.48B	50.47B	53.82B	50.67B	29.71B
Gross Profit	19.91B	19.91B	18.20B	18.81B	18.65B	9.62B
EBITDA	11.59B	14.12B	11.87B	12.87B	13.71B	5.50B
Net Income	8.12B	8.12B	6.44B	7.35B	8.13B	2.66B
Balance Sheet
Total Assets	83.23B	83.23B	87.86B	73.47B	71.33B	51.79B
Cash, Cash Equivalents and Short-Term Investments	21.34B	21.34B	20.83B	16.55B	12.41B	10.69B
Total Debt	10.06B	10.06B	14.02B	15.87B	10.42B	7.81B
Total Liabilities	21.84B	21.84B	29.43B	25.85B	30.21B	20.29B
Stockholders Equity	61.39B	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: 2375.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2375 is above the 20-day moving average (MA) of 2166.40, above the 50-day MA of 2018.28, and above the 200-day MA of 1748.44, indicating a bullish trend. The MACD of 45.63 indicates Negative momentum. The RSI at 62.74 is Neutral, neither overbought nor oversold. The STOCH value of 93.84 is Negative, 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
5384	―	¥184.90B	19.03	―	3.03%	21.20%	36.43%
6890	―	$195.62B	14.43	6.22%	3.16%	22.01%	-13.47%
6966	―	¥138.71B	14.86	―	2.33%	6.31%	-37.42%
6315	―	€158.93B	25.68	10.40%	0.84%	-10.90%	-19.72%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6707	―	¥144.52B	3.31	―	―	-58.24%	―

Towa Corporation Corporate Events

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.

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.