Towa Corporation (6315) AI Stock Analysis

• Market Cap: ¥128.17B
• Dividend Yield: 1.17%
• Average Volume (3M): 3.17M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 1.91
• Revenue Growth: 5.96%
• EPS Growth: 26.04%
• Country: JP
• Employees: 1,985
• Sector: Technology
• Sector Strength: 82
• Industry: Semiconductors
• EPS (TTM): 39.58
• Shares Outstanding: 75,140,560
• 10 Day Avg. Volume: 3,325,640
• 30 Day Avg. Volume: 3,171,626
• PEG Ratio: -0.25
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 174.95
• 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: ¥1,400.84
• Price Target Upside: -17.89% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: ¥1,724.00 ▲(1.06%Upside)

Towa Corporation achieves a solid overall score driven primarily by robust financial performance, highlighted by strong profitability and efficient operations. Valuation metrics indicate the stock is fairly valued, offering balanced growth and income potential. Technical analysis presents mixed signals; while there is some bullish momentum, there are also resistance levels to consider.

Towa Corporation Business Overview & Revenue Model

Company Description

Towa Corporation (6315) is a Japanese company specializing in the design, manufacture, and sale of semiconductor manufacturing equipment. The company operates primarily in the semiconductor and electronics industries, offering products such as molding equipment and singulation equipment used in semiconductor packaging processes. Towa Corporation is recognized for its technological innovations and high-quality products, catering to a global clientele.

How the Company Makes Money

Towa Corporation generates revenue through the sale of its semiconductor manufacturing equipment, which includes molding equipment and singulation equipment. These machines are essential for semiconductor packaging, a critical step in the production of electronic devices. The company's revenue model is based on direct sales of these high-value machines to semiconductor manufacturers and electronics companies worldwide. Additionally, Towa Corporation may earn income through maintenance services, spare parts, and technology licensing agreements. Strategic partnerships with key players in the semiconductor industry can also contribute to its earnings by expanding its market reach and enhancing its product offerings.

Towa Corporation Financial Statement Overview

Summary

Towa Corporation displays a well-rounded financial performance with strong profitability, efficient operations, and a solid balance sheet. The company effectively manages its leverage while generating consistent revenue growth and maintaining positive cash flow. Potential risks include slight fluctuations in revenue and asset values, but overall, the company is well-positioned for future growth in the semiconductors industry.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
57.70B	53.48B	50.47B	53.82B	50.67B	29.71B
	Gross Profit
21.82B	19.91B	18.20B	18.81B	18.65B	9.62B
	EBIT
11.11B	8.88B	8.66B	10.04B	11.51B	3.62B
	EBITDA
12.70B	14.12B	11.87B	12.87B	13.71B	5.50B
	Net Income Common Stockholders
8.48B	8.12B	6.44B	7.35B	8.13B	2.66B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.18B	21.34B	20.83B	16.55B	12.41B	10.69B
	Total Assets
86.46B	83.23B	87.86B	73.47B	71.33B	51.79B
	Total Debt
11.77B	10.06B	14.02B	15.87B	10.42B	7.81B
	Net Debt
-10.41B	-11.27B	-6.50B	-673.48M	-1.99B	-2.88B
	Total Liabilities
25.17B	21.84B	29.43B	25.85B	30.21B	20.29B
	Stockholders Equity
61.29B	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: 1706.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 1706 is above the 20-day moving average (MA) of 1578.80, above the 50-day MA of 1463.76, and above the 200-day MA of 1697.36, indicating a neutral trend. The MACD of 53.34 indicates Negative momentum. The RSI at 59.93 is Neutral, neither overbought nor oversold. The STOCH value of 81.60 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
6890	80 Outperform	$130.16B	8.28	7.01%	6.21%	23.36%	3.63%
6315	75 Outperform	¥128.17B	15.76	13.50%	1.17%	5.96%	26.04%
5384	72 Outperform	¥140.44B	14.52		3.98%	18.61%	30.56%
6966	71 Outperform	¥129.48B	14.47		3.60%	9.00%	-50.84%
6707	69 Neutral	¥190.25B	3.72		0.38%	-48.30%	―
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%

Towa Corporation Corporate Events

Towa Corporation Reports Increased Sales and Profit for FY 2025

Towa Corporation reported a 6% increase in net sales for the fiscal year ending March 31, 2025, with a notable 26% rise in profit attributable to owners of the parent. Despite a decrease in comprehensive income by 68.2%, the company maintained a strong equity-to-asset ratio of 73.8%. The financial results indicate a positive trajectory in sales and profitability, although challenges remain in maintaining comprehensive income levels.

Towa Corporation Announces Strategic Personnel Changes

Towa Corporation has announced key personnel changes effective April 1, 2025, involving the reassignment of executive roles within its corporate planning and production divisions. These changes are likely to enhance the company’s strategic planning capabilities and operational efficiency, potentially impacting its market position positively.

Towa Corporation Announces Segment Name Change to Reflect Medical Focus

Towa Corporation announced a change in its reporting segments, renaming the ‘Fine Plastic Molding Products Business’ to ‘Medical Devices Business’ to better reflect its focus on medical devices. This change is part of the company’s medium-term management plan and will be effective from the fiscal year ending March 2025, with no impact on the classification of reporting segments.

Towa Corporation Unveils Second Mid-Term Management Plan for 2026-2028

Towa Corporation has announced its second mid-term management plan for 2026-2028, focusing on new challenges and leadership development under the theme ‘Enabling the Next Generation of Leadership with TOWA-ism’. The plan emphasizes enhancing product value, leveraging digital transformation, and investing in human resources to maintain industry leadership. It also outlines strategies for its semiconductor, medical device, and laser businesses, aiming for sustainability and market expansion.

Towa Corporation Unveils Advanced HBM4 Packaging Technology

Towa Corporation has developed a new packaging technology called Ultra narrow gap Mold Underfill, designed to enhance semiconductor packaging for next-generation HBM4 semiconductors used in generative AI. This technology allows for improved stacking of semiconductor chips, increasing productivity and quality in manufacturing processes, and is set to be implemented in new equipment with sales beginning in August.