Company DescriptionTowa Pharmaceutical Co., Ltd., together with its subsidiaries, researches, develops, produces, and sells ethical drugs, active pharmaceutical ingredients, and intermediates in Japan. The company provides its products in the therapeutic areas of diabetes, digestive system, nervous system, and allergic diseases, as well as vitamins, antibiotics, and oncology products. It had a portfolio of approximately 700 drug products. Towa Pharmaceutical Co., Ltd. was founded in 1951 and is headquartered in Osaka, Japan.

How the Company Makes Money

Towa Pharmaceutical Co Financial Statement Overview

Summary

Towa Pharmaceutical demonstrates strong revenue growth and profitability margins, indicating robust financial health. However, the company faces challenges with cash flow conversion and maintains a moderate level of leverage. Overall, the financial position appears stable, with opportunities to enhance cash flow efficiency.

Income Statement

Positive

Towa Pharmaceutical has shown a strong revenue increase in TTM, with a Gross Profit Margin of 36.2% and Net Profit Margin of 7.6%. The company has successfully improved its EBIT and EBITDA margins compared to previous periods, indicating operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a stable but relatively high Debt-to-Equity Ratio of 1.32, suggesting moderate leverage. However, the company maintains a solid Equity Ratio of 36.8%, showing a stable capital structure. ROE is strong at 11.4%, highlighting effective use of equity.

Cash Flow

Positive

The operating cash flow to net income ratio is weak due to significant capital expenditures impacting free cash flow. The Free Cash Flow to Net Income Ratio is negative, indicating challenges in converting income into free cash flow despite positive operating cash flow.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
253.35B	227.93B	208.86B	165.62B	154.90B	110.38B
	Gross Profit
91.72B	81.38B	72.71B	70.19B	65.45B	50.65B
	EBIT
23.05B	17.65B	5.51B	19.20B	19.92B	16.14B
	EBITDA
39.82B	35.54B	24.92B	29.49B	30.35B	24.46B
	Net Income Common Stockholders
19.28B	16.17B	2.20B	15.91B	13.96B	14.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
30.70B	29.65B	24.26B	32.83B	22.91B	18.71B
	Total Assets
414.69B	430.65B	371.35B	329.94B	245.67B	228.14B
	Total Debt
196.17B	202.36B	173.06B	144.13B	84.77B	82.39B
	Net Debt
165.47B	172.71B	148.81B	111.30B	61.85B	63.68B
	Total Liabilities
265.87B	274.76B	234.45B	197.77B	129.07B	123.49B
	Stockholders Equity
148.82B	155.89B	136.89B	132.17B	116.60B	104.65B
Cash Flow		Free Cash Flow
-16.21B	-31.11B	-27.93B	8.55B	2.13B	14.49B
	Operating Cash Flow
5.70B	8.21B	2.54B	22.13B	12.01B	19.16B
	Investing Cash Flow
-23.87B	-40.39B	-30.28B	-59.73B	-9.10B	-39.54B
	Financing Cash Flow
15.58B	35.41B	17.48B	46.54B	184.00M	11.75B

Towa Pharmaceutical Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TWAPF		$1.06B	10.01	11.38%	1.83%	―	―
Sector *	54 Neutral	$5.31B	3.28	-45.10%	2.80%	16.76%	0.02%
KKPCF		$943.41M	11.14	9.44%	4.73%	―	―
KSPHF		$1.22B	15.08	5.47%	2.44%	―	―
TRXPF		$1.23B	28.25	4.56%	2.13%	―	―
4569	73 Outperform	¥78.43B	9.42		3.49%	8.83%	70.61%
4887	69 Neutral	¥174.66B	9.49		3.02%	-3.69%	76.69%

* Healthcare Sector Average

Performance Comparison

TWAPF

Towa Pharmaceutical Co

25.33

7.41

41.35%

KKPCF

Kaken Pharmaceutical Co

26.44

2.71

11.42%

KSPHF

Kissei Pharmaceutical Co

27.13

6.99

34.71%

TRXPF

Torii Pharmaceutical Co

36.62

13.56

58.80%

JP:4569

KYORIN Pharmaceutical Co.,Ltd.

1,490.00

-144.70

-8.85%

JP:4887

SAWAI GROUP HOLDINGS Co., Ltd.

1,780.00

-107.89

-5.71%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

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