KOWA CO. LTD. (7807) AI Stock Analysis

• Market Cap: ¥3.94B
• Dividend Yield: 1.53%
• Average Volume (3M): 4.43K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.44
• Revenue Growth: 0.28%
• EPS Growth: -27.08%
• Country: JP
• Employees: 213
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 28.19
• Shares Outstanding: 5,025,970
• 10 Day Avg. Volume: 5,590
• 30 Day Avg. Volume: 4,433
• PEG Ratio: -0.33
• Price to Book (P/B): 1.07
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 79 Outperform
• Price Target: ¥881.00 ▲(12.37%Upside)

KOWA CO. LTD.'s strong financial performance and attractive valuation are the primary drivers of its high score. The company's robust profitability, effective financial management, and low P/E ratio highlight its potential as an undervalued investment opportunity. Technical analysis suggests a stable outlook, but it is less influential compared to the company's financial health and valuation.

KOWA CO. LTD. Business Overview & Revenue Model

Company Description

KOWA 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 Money

KOWA 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

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.36B	6.37B	6.40B	6.27B	5.72B	5.25B
Gross Profit	2.85B	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	733.54M	616.20M	710.43M	438.31M	400.96M	389.40M
Balance Sheet
Total Assets	5.13B	4.89B	4.82B	5.16B	5.03B	5.08B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.69B	1.02B	1.24B	1.38B	1.83B
Total Debt	581.00M	393.50M	940.09M	1.23B	1.53B	2.77B
Total Liabilities	2.17B	1.88B	2.34B	2.68B	2.78B	3.86B
Stockholders Equity	2.87B	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: 784.00
• 50DMA: Positive
• 100DMA: Negative
• 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:7807, the sentiment is Positive. The current price of 784 is above the 20-day moving average (MA) of 766.90, above the 50-day MA of 769.06, and below the 200-day MA of 851.04, indicating a neutral trend. The MACD of 4.54 indicates Negative momentum. The RSI at 60.92 is Neutral, neither overbought nor oversold. The STOCH value of 93.94 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	79 Outperform	¥3.94B	6.53		1.53%	0.28%	-27.08%
7898	73 Outperform	¥7.80B	4.37		2.75%	0.58%	―
7887	72 Outperform	¥5.80B	57.37		2.41%	4.82%	-89.35%
Sector *	62 Neutral	$16.51B	10.46	-8.28%	3.32%	1.44%	-22.58%
7997	61 Neutral	¥1.35B	8.80		2.52%	-9.93%	-83.97%
6612	56 Neutral	¥7.27B	119.08		―	-5.23%	93.21%
7822	52 Neutral	¥10.52B	3.86		4.26%	-0.65%	-100.90%