Howa Machinery, Ltd. (6203) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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A-One Seimitsu, Inc.

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Daiki Axis Co., Ltd.

Howa Machinery, Ltd.

Why is Howa Machinery, Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.09% over the last 5 years

INTEREST(Q) At JPY 14 MM has Grown at 16.67%

With ROE of 4.97%, it has a attractive valuation with a 0.73 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.59%, its profits have risen by 206.7% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -2.59% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Howa Machinery, Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Howa Machinery, Ltd.

-3.86%

0.90

57.62%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.09%

EBIT Growth (5y)

10.05%

EBIT to Interest (avg)

42.52

Debt to EBITDA (avg)

1.17

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

0.89

Tax Ratio

37.89%

Dividend Payout Ratio

32.20%

Pledged Shares

Institutional Holding

ROCE (avg)

3.91%

ROE (avg)

4.12%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.73

EV to EBIT

14.87

EV to EBITDA

10.75

EV to Capital Employed

0.79

EV to Sales

0.75

PEG Ratio

0.07

Dividend Yield

0.05%

ROCE (Latest)

5.30%

ROE (Latest)

4.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

23What is working for the Company

NET SALES(HY)

At JPY 13,456 MM has Grown at 35.63%

NET PROFIT(HY)

Higher at JPY 199.29 MM

ROCE(HY)

Highest at 4.89%

RAW MATERIAL COST(Y)

Fallen by -17.47% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 2.86%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.86%

OPERATING PROFIT MARGIN(Q)

Highest at 11.13 %

PRE-TAX PROFIT(Q)

At JPY 516 MM has Grown at 94.72%

-7What is not working for the Company

INTEREST(Q)

At JPY 14 MM has Grown at 16.67%

Here's what is working for Howa Machinery, Ltd.

Net Sales

At JPY 13,456 MM has Grown at 35.63%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Net Profit

At JPY 199.29 MM has Grown at 123.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

Higher at JPY 199.29 MM

than preceding 12 month period ended Jun 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (JPY MM)

Operating Profit Margin

Highest at 11.13 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 516 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 516 MM has Grown at 94.72%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Inventory Turnover Ratio

Highest at 2.86%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.86%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -17.47% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at JPY 144 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Howa Machinery, Ltd.

Interest

At JPY 14 MM has Grown at 16.67%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 14 MM

in the last five periods and Increased by 16.67% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)