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Towa Corporation
(6315)
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Rating:64Neutral
Price Target:
¥2,926.00
▲(11.04% Upside)
Action:Reiterated
Date:06/05/26
The score is driven primarily by mixed fundamentals: strong historical growth/profitability and a solid balance sheet are offset by FY2026 earnings softness and notably weaker free cash flow with rising debt. Technicals are supportive with an established uptrend, but the high P/E and low dividend yield weigh on the overall rating.
Positive Factors
Market niche in packaging equipment
TOWA's focus on semiconductor back-end packaging and encapsulation positions it in a specialized capital-equipment niche with high technical barriers. That specialization supports durable customer relationships with OSATs and chipmakers and enables recurring service, parts and consumables revenue over multi-year equipment lifecycles.
Negative Factors
FY2026 earnings & FCF weakness
A material earnings step-down and near-breakeven free cash flow in FY2026 reduce internal funding for capex and R&D and raise execution risk. If weaker profits persist, the company may struggle to maintain service investments and growth initiatives without relying on external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Market niche in packaging equipment
TOWA's focus on semiconductor back-end packaging and encapsulation positions it in a specialized capital-equipment niche with high technical barriers. That specialization supports durable customer relationships with OSATs and chipmakers and enables recurring service, parts and consumables revenue over multi-year equipment lifecycles.
Read all positive factors
Towa Corporation (6315) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥198.98B
Dividend Yield0.76%
Average Volume (3M)6.94M
Price to Earnings (P/E)43.3
Beta (1Y)2.18
Revenue Growth1.66%
EPS Growth-43.46%
CountryJP
Employees2,211
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)61.22
Shares Outstanding75,157,364
10 Day Avg. Volume5,118,940
30 Day Avg. Volume6,944,783
Financial Highlights & Ratios
PEG Ratio-0.83
Price to Book (P/B)2.36
Price to Sales (P/S)3.06
P/FCF Ratio3.24K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,660.00Price Target Upside38.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)113.09
Revenue Forecast (FY)¥66.97B
Towa Corporation Business Overview & Revenue Model
Company Description
TOWA Corporation, headquartered in Kyoto, Japan, specializes in the design, development, production, and distribution of semiconductor manufacturing equipment and high-precision molds for both domestic and global markets. The company's diverse por...
How the Company Makes Money
TOWA makes money primarily by selling semiconductor packaging equipment (capital equipment) to semiconductor makers and OSATs. Its core revenue stream is the manufacture and sale of molding/encapsulation-related systems used in the back-end of sem...
Towa Corporation Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 54.37B | 53.48B | 50.47B | 53.82B | 50.67B |
| Gross Profit | 18.37B | 19.87B | 18.20B | 18.81B | 18.65B |
| EBITDA | 7.17B | 14.12B | 11.87B | 12.87B | 13.71B |
| Net Income | 4.59B | 8.12B | 6.44B | 7.35B | 8.13B |
Balance Sheet | |||||
| Total Assets | 106.27B | 83.23B | 87.86B | 73.47B | 71.33B |
| Cash, Cash Equivalents and Short-Term Investments | 28.43B | 21.34B | 20.83B | 16.55B | 12.41B |
| Total Debt | 18.17B | 10.06B | 14.02B | 15.87B | 10.42B |
| Total Liabilities | 35.66B | 21.84B | 29.43B | 25.85B | 30.21B |
| Stockholders Equity | 70.61B | 61.39B | 58.44B | 47.22B | 40.73B |
Cash Flow | |||||
| Free Cash Flow | 51.38M | 5.33B | 8.00B | 99.81M | 1.13B |
| Operating Cash Flow | 4.12B | 10.37B | 9.67B | 2.83B | 6.40B |
| Investing Cash Flow | -5.53B | -4.76B | -2.77B | -2.75B | -6.60B |
| Financing Cash Flow | 6.43B | -5.13B | -3.52B | 3.96B | 1.93B |
Towa Corporation Technical Analysis
Negative
2635.00
Price Trends
3007.62
Negative
2837.77
Negative
2644.35
Negative
Market Momentum
-100.40
Negative
41.98
Neutral
70.97
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 2635 is below the 20-day moving average (MA) of 2853.65, below the 50-day MA of 3007.62, and below the 200-day MA of 2644.35, indicating a bearish trend. The MACD of -100.40 indicates Negative momentum. The RSI at 41.98 is Neutral, neither overbought nor oversold. The STOCH value of 70.97 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥704.63B | 28.13 | 13.70% | 1.50% | 10.83% | -3.77% | |
66 Neutral | ¥89.24B | 14.30 | ― | 1.72% | 23.24% | 55.74% | |
64 Neutral | ¥198.98B | 43.25 | 7.01% | 1.00% | 1.66% | -43.46% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | ¥165.02B | 24.39 | ― | 2.45% | 2.92% | -19.54% | |
51 Neutral | ¥448.01B | 26.11 | 6.34% | 1.70% | 5.30% | -4.93% | |
46 Neutral | ¥1.18T | -50.45 | ― | 0.53% | 0.75% | -230.21% |
* Technology Sector Average
JP:6315
Towa Corporation
2,532.00
802.56
46.41%
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Towa Corporation Corporate Events
Towa issues restricted stock to align executive pay with long-term value
Jul 23, 2026
Towa Corporation’s board has approved the issuance of 10,584 new common shares as restricted stock compensation to five directors and five executive officers, valued at about ¥30.27 million at an issue price of ¥2,860 per share. Th...
Towa Corporation Sees Profit Decline but Signals Strong Rebound and Higher Dividend
May 11, 2026
Towa Corporation reported a modest 1.7% rise in net sales to ¥54.4 billion for the fiscal year ended March 31, 2026, but saw operating profit fall 22.1% and profit attributable to owners of parent drop 43.4% to ¥4.6 billion, reflecting m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.