ScoreWhy is Howa Machinery, Ltd. ?
1
Poor Management Efficiency with a low ROE of 4.14%
- The company has been able to generate a Return on Equity (avg) of 4.14% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a 5.30% CAGR growth in Net Sales over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 4.14% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 5.30% over the last 5 years
4
Flat results in Jun 26
- NET SALES(Q) Lowest at JPY 4,673 MM
- INTEREST(Q) Highest at JPY 16 MM
5
With ROE of 2.78%, it has a expensive valuation with a 0.96 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 21.49%, its profits have risen by 604.1% ; the PEG ratio of the company is 0.1
- At the current price, the company has a high dividend yield of 0
Real-Time Research ReportHow 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.
24.25%
1.20
69.75%
Japan Nikkei 225
58.07%
1.98
29.31%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.30%
EBIT Growth (5y)
9.42%
EBIT to Interest (avg)
36.75
Debt to EBITDA (avg)
1.08
Net Debt to Equity (avg)
0.26
Sales to Capital Employed (avg)
0.89
Tax Ratio
44.62%
Dividend Payout Ratio
32.57%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
4.35%
ROE (avg)
4.14%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
34
Industry P/E
Price to Book Value
0.96
EV to EBIT
21.03
EV to EBITDA
13.44
EV to Capital Employed
0.96
EV to Sales
0.87
PEG Ratio
0.06
Dividend Yield
NA
ROCE (Latest)
4.58%
ROE (Latest)
2.78%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
NET PROFIT(HY)
Higher at JPY 636.19 MM
RAW MATERIAL COST(Y)
Fallen by -15.95% (YoY
CASH AND EQV(HY)
Highest at JPY 13,049 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -1.36 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.01 times
OPERATING PROFIT MARGIN(Q)
Highest at 12.33 %
PRE-TAX PROFIT(Q)
Highest at JPY 572 MM
-15What is not working for the Company
NET SALES(Q)
Lowest at JPY 4,673 MM
INTEREST(Q)
Highest at JPY 16 MM
Here's what is working for Howa Machinery, Ltd.
Net Profit
At JPY 636.19 MM has Grown at 219.23%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Net Profit
Higher at JPY 636.19 MM
than preceding 12 month period ended Jun 2026MOJO 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 12.33 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 572 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Cash and Eqv
Highest at JPY 13,049 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -1.36 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.01 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -15.95% (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
Here's what is not working for Howa Machinery, Ltd.
Interest
At JPY 16 MM has Grown at 14.29%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Sales
Lowest at JPY 4,673 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Net Sales
Fallen at -10%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (JPY MM)
Interest
Highest at JPY 16 MM
in the last five periods and Increased by 14.29% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
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