Towa Corporation (6315) AI Stock Analysis

• Market Cap: ¥148.18B
• Dividend Yield: 1.01%
• Average Volume (3M): 6.94M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 2.03
• 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: ¥1,047.53
• Price Target Upside: -46.88% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ¥2,161.00 ▲(9.58% Upside)

Towa Corporation's overall stock score is driven by strong financial performance, which is the most significant factor. However, bearish technical indicators and moderate valuation weigh down the score. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Financial Performance

The company's strong financial performance, marked by consistent revenue growth and robust profit margins, indicates a solid business model and effective cost management, supporting long-term sustainability.

Balance Sheet Health

A low debt-to-equity ratio and high equity backing reflect financial stability and flexibility, reducing risk and supporting future growth initiatives.

Cash Flow Generation

Strong cash flow generation supports operational needs and growth initiatives, indicating effective cash management and financial health.

Negative Factors

Revenue Decline

A decline in revenue growth could indicate challenges in market demand or competitive pressures, potentially impacting future profitability and market position.

Earnings Decline

A significant decline in EPS growth suggests potential issues in profitability and cost management, which could affect investor confidence and long-term growth prospects.

Decline in Total Assets

A decrease in total assets may indicate reduced investment in growth or asset efficiency issues, potentially impacting future expansion capabilities.

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 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: 1972.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1972 is below the 20-day moving average (MA) of 2079.45, below the 50-day MA of 2180.08, and above the 200-day MA of 1812.79, indicating a neutral trend. The MACD of -76.96 indicates Positive momentum. The RSI at 42.69 is Neutral, neither overbought nor oversold. The STOCH value of 19.53 is Positive, 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	¥175.69B	17.60	―	3.18%	14.85%	29.86%
6890	75 Outperform	¥229.95B	17.87	5.41%	3.27%	11.15%	-19.39%
6966	75 Outperform	¥131.21B	12.76	―	2.51%	4.60%	-21.64%
6871	67 Neutral	¥245.06B	24.32	―	1.10%	29.60%	24.39%
6315	66 Neutral	¥148.18B	24.07	10.10%	1.01%	-12.50%	-26.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6707	46 Neutral	¥109.76B	95.61	―	―	-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.

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.