ScoreWhy is Tomoegawa Corp. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 2.13% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Capital Employed (avg) of 5.99% signifying low profitability per unit of total capital (equity and debt)
2
The company declared negative results in Mar'25 after flat results in Dec'24
- INTEREST(HY) At JPY 134 MM has Grown at 20.72%
- DEBT-EQUITY RATIO (HY) Highest at 57.98 %
- INVENTORY TURNOVER RATIO(HY) Lowest at 2.72 times
3
With ROCE of 4.88%, it has a very attractive valuation with a 0.67 Enterprise value to Capital Employed
- 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 5.85%, its profits have risen by 10.2% ; the PEG ratio of the company is 0.6
- At the current price, the company has a high dividend yield of 0.1
4
Underperformed the market in the last 1 year
- The stock has generated a return of 5.85% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 36.73%
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 Paper, Forest & Jute Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Tomoegawa Corp. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Tomoegawa Corp.
5.85%
-0.49
37.27%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.13%
EBIT Growth (5y)
82.57%
EBIT to Interest (avg)
5.67
Debt to EBITDA (avg)
2.94
Net Debt to Equity (avg)
0.57
Sales to Capital Employed (avg)
1.21
Tax Ratio
25.14%
Dividend Payout Ratio
20.55%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
6.08%
ROE (avg)
9.00%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
6
Industry P/E
Price to Book Value
0.47
EV to EBIT
13.62
EV to EBITDA
5.41
EV to Capital Employed
0.67
EV to Sales
0.46
PEG Ratio
0.59
Dividend Yield
0.07%
ROCE (Latest)
4.88%
ROE (Latest)
7.83%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -0.68% (YoY
NET PROFIT(9M)
Higher at JPY 954.84 MM
NET SALES(Q)
Highest at JPY 9,035 MM
-10What is not working for the Company
INTEREST(HY)
At JPY 134 MM has Grown at 20.72%
DEBT-EQUITY RATIO
(HY)
Highest at 57.98 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.72 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.1 times
Here's what is working for Tomoegawa Corp.
Net Sales
Highest at JPY 9,035 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Net Profit
Higher at JPY 954.84 MM
than preceding 12 month period ended Dec 2025MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Raw Material Cost
Fallen by -0.68% (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 500 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Here's what is not working for Tomoegawa Corp.
Interest
At JPY 134 MM has Grown at 20.72%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Debt-Equity Ratio
Highest at 57.98 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Inventory Turnover Ratio
Lowest at 2.72 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 5.1 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Non Operating Income
Highest at JPY 0.55 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
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