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KOWA CO. LTD. (JP:7807)
:7807
Japanese Market

KOWA CO. LTD. (7807) AI Stock Analysis

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JP

KOWA CO. LTD.

(7807)

Rating:76Outperform
Price Target:
¥888.00
▲(18.09%Upside)
KOWA CO. LTD. scores highly due to its strong financial performance and attractive valuation. The company's robust earnings growth and efficient cash flow management provide a strong foundation. However, neutral to bearish technical indicators slightly offset these strengths, indicating potential near-term challenges in stock momentum.

KOWA CO. LTD. (7807) vs. iShares MSCI Japan ETF (EWJ)

KOWA CO. LTD. Business Overview & Revenue Model

Company DescriptionKOWA CO. LTD. (7807) is a Japanese company that operates primarily in the manufacturing sector, specializing in the production of industrial and consumer goods. The company is known for its high-quality products that cater to various industries, including automotive, electronics, and household goods. With a strong emphasis on innovation and technology, KOWA CO. LTD. strives to deliver products that meet the evolving needs of its customers.
How the Company Makes MoneyKOWA CO. LTD. generates revenue through the sale of its industrial and consumer products. The company's key revenue streams include the manufacturing and distribution of automotive parts, electronic components, and household goods. It leverages its advanced manufacturing capabilities and technological expertise to produce high-demand items for both domestic and international markets. Additionally, KOWA CO. LTD. may engage in strategic partnerships and collaborations with other companies to enhance its product offerings and expand its market reach, further contributing to its earnings.

KOWA CO. LTD. Financial Statement Overview

Summary
KOWA CO. LTD. presents a strong financial profile with consistent profitability, effective debt management, and robust cash flow generation. Key strengths include the turnaround from past losses and solid earnings growth, despite minor concerns about asset growth and a revenue dip in 2025.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue6.36B6.37B6.40B6.27B5.72B5.25B
Gross Profit2.85B2.82B2.95B2.66B2.68B2.67B
EBITDA1.10B1.17B1.21B917.14M852.50M677.56M
Net Income733.54M616.20M710.43M438.31M400.96M389.40M
Balance Sheet
Total Assets5.13B4.89B4.82B5.16B5.03B5.08B
Cash, Cash Equivalents and Short-Term Investments1.61B1.69B1.02B1.24B1.38B1.83B
Total Debt581.00M393.50M940.09M1.23B1.53B2.77B
Total Liabilities2.17B1.88B2.34B2.68B2.78B3.86B
Stockholders Equity2.87B2.92B2.41B2.43B2.20B1.19B
Cash Flow
Free Cash Flow0.00642.99M690.14M502.38M352.85M553.76M
Operating Cash Flow0.00960.49M742.06M557.81M516.65M628.92M
Investing Cash Flow0.0038.48M92.96M-145.75M-215.42M-29.45M
Financing Cash Flow0.00-549.82M-1.09B-562.70M-822.92M-1.41B

KOWA CO. LTD. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price752.00
Price Trends
50DMA
775.26
Negative
100DMA
801.07
Negative
200DMA
868.33
Negative
Market Momentum
MACD
-6.56
Positive
RSI
35.34
Neutral
STOCH
11.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7807, the sentiment is Negative. The current price of 752 is below the 20-day moving average (MA) of 762.10, below the 50-day MA of 775.26, and below the 200-day MA of 868.33, indicating a bearish trend. The MACD of -6.56 indicates Positive momentum. The RSI at 35.34 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:7807.

KOWA CO. LTD. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
¥3.78B5.19
1.59%-0.55%-6.93%
72
Outperform
¥5.87B58.04
2.47%4.82%-89.35%
65
Neutral
¥7.62B4.27
2.94%0.58%
63
Neutral
$16.62B10.98-6.98%2.96%1.73%-24.23%
61
Neutral
¥1.34B11.24
2.55%-6.09%-88.41%
56
Neutral
¥7.19B119.08
-5.23%93.21%
52
Neutral
¥9.99B3.86
4.42%-0.65%-100.90%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7807
KOWA CO. LTD.
752.00
-576.16
-43.38%
JP:6612
BALMUDA, Inc.
849.00
-363.00
-29.95%
JP:7822
Eidai Co., Ltd.
231.00
-1.21
-0.52%
JP:7887
Nankai Plywood Co., Ltd.
5,990.00
-407.62
-6.37%
JP:7898
Wood One Co., Ltd.
819.00
-69.77
-7.85%
JP:7997
Kurogane Kosakusho Ltd.
777.00
-241.77
-23.73%
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.Date of analysis: May 14, 2025