KOWA CO. LTD. (7807) AI Stock Analysis

• Market Cap: ¥4.21B
• Dividend Yield: 1.43%
• Average Volume (3M): 3.79K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.38
• Revenue Growth: 0.65%
• EPS Growth: -39.91%
• Country: JP
• Employees: 213
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 29.46
• Shares Outstanding: 5,027,650
• 10 Day Avg. Volume: 3,040
• 30 Day Avg. Volume: 3,786
• PEG Ratio: -0.94
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 5.69
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: ¥914.00 ▲(9.07% Upside)

KOWA CO. LTD. achieves a strong overall stock score driven primarily by its solid financial performance and attractive valuation. The technical analysis supports a stable outlook, although minor concerns about asset growth and revenue dip slightly temper the score.

Positive Factors

Strong Financial Performance

The company's ability to maintain profitability and manage debt effectively indicates a solid financial foundation, supporting long-term stability and growth potential.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Profit Margin Improvement

Improving profit margins reflect efficient cost management and operational strength, which are crucial for sustaining long-term profitability.

Negative Factors

Revenue Dip

A decline in revenue can indicate challenges in market demand or competitive pressures, potentially impacting future growth prospects if not addressed.

Asset Growth Concerns

Decreasing assets may suggest inefficiencies or underutilization, which could limit the company's ability to capitalize on growth opportunities.

EPS Decline

A significant decline in EPS growth can signal underlying operational challenges, impacting investor confidence and future earnings potential.

KOWA CO. LTD. Business Overview & Revenue Model

Company Description

KOWA CO. LTD. (7807) is a diversified Japanese company primarily engaged in the manufacturing and distribution of a wide range of products across various sectors, including pharmaceuticals, healthcare, and consumer goods. Established in 1894, KOWA has built a reputation for innovation and quality, offering products that enhance the well-being of individuals and communities. The company's core offerings include prescription medications, over-the-counter health products, and a selection of consumer goods, all underscored by a commitment to research and development.

How the Company Makes Money

KOWA CO. LTD. generates revenue through multiple streams, with a significant portion coming from its pharmaceutical division, which includes both prescription drugs and over-the-counter products. The company invests heavily in research and development to bring new medications to market, thereby establishing a robust product pipeline that drives sales. Additionally, KOWA has formed strategic partnerships and collaborations with other pharmaceutical companies for co-development and distribution, which enhances its market reach and revenue potential. The company's consumer goods segment also contributes to its earnings, focusing on personal care and health-related products that cater to a broad consumer base. Overall, KOWA's diversified portfolio and strategic initiatives position it well for sustained financial growth.

KOWA CO. LTD. Financial Statement Overview

Summary

KOWA CO. LTD. demonstrates strong financial performance with consistent profitability, effective debt management, and robust cash flow generation. Despite minor concerns about asset growth and a revenue dip in 2025, the company's financial health is commendable.

Income Statement

KOWA CO. LTD. has demonstrated strong profitability with a consistent increase in gross and net profit margins over the past few years. The gross profit margin has remained robust, and the net profit margin improved significantly from a loss in 2020 to a healthy positive in 2025. Revenue growth has been stable, although there was a slight dip in 2025 compared to 2024. The EBIT and EBITDA margins have also shown positive trends, indicating efficient cost management and operational strength.

Balance Sheet

The company's balance sheet reflects strong equity growth with a solid equity ratio. The debt-to-equity ratio has improved over the years, suggesting effective debt management, and the return on equity has been positive. However, the total assets have slightly decreased, indicating potential concerns about asset growth or efficiency in asset utilization. Overall, the balance sheet shows a stable financial position with opportunities for better asset management.

Cash Flow

KOWA CO. LTD. has shown positive free cash flow growth, driven by strong operating cash flow. The free cash flow to net income ratio indicates good conversion of earnings into cash, supporting financial flexibility. Despite fluctuations in investing cash flow, the company has maintained healthy cash flow operations, evidencing prudent financial management. The operating cash flow to net income ratio is favorable, suggesting efficient cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.41B	6.37B	6.40B	6.27B	5.72B	5.25B
Gross Profit	2.81B	2.82B	2.95B	2.66B	2.68B	2.67B
EBITDA	1.10B	1.17B	1.21B	917.14M	852.50M	677.56M
Net Income	506.80M	616.20M	710.43M	438.31M	400.96M	389.40M
Balance Sheet
Total Assets	4.90B	4.89B	4.82B	5.16B	5.03B	5.08B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.69B	1.02B	1.24B	1.38B	1.83B
Total Debt	616.81M	393.50M	940.09M	1.23B	1.53B	2.77B
Total Liabilities	1.88B	1.88B	2.34B	2.68B	2.78B	3.86B
Stockholders Equity	2.94B	2.92B	2.41B	2.43B	2.20B	1.19B
Cash Flow
Free Cash Flow	0.00	642.99M	690.14M	502.38M	352.85M	553.76M
Operating Cash Flow	0.00	960.49M	742.06M	557.81M	516.65M	628.92M
Investing Cash Flow	0.00	38.48M	92.96M	-145.75M	-215.42M	-29.45M
Financing Cash Flow	0.00	-549.82M	-1.09B	-562.70M	-822.92M	-1.41B

KOWA CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 838.00
• 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:7807, the sentiment is Positive. The current price of 838 is above the 20-day moving average (MA) of 813.30, above the 50-day MA of 821.18, and above the 200-day MA of 804.85, indicating a bullish trend. The MACD of 3.15 indicates Negative momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 83.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7807.

KOWA CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7807	80 Outperform	¥4.21B	7.97	―	1.43%	0.65%	-39.91%
7887	80 Outperform	¥8.06B	5.46	―	1.80%	8.56%	2690.35%
7997	70 Outperform	¥1.52B	4.74	―	4.49%	-9.48%	-66.01%
7898	66 Neutral	¥8.26B	3.45	―	2.71%	1.11%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6612	51 Neutral	¥6.03B	-10.79	―	―	-23.54%	-14.54%
7822	46 Neutral	¥10.03B	31.75	―	4.41%	2.78%	-88.37%