ScoreWhy is TOW Co., Ltd. ?
1
High Management Efficiency with a high ROE of 9.82%
2
Company has very low debt and has enough cash to service the debt requirements
3
Poor long term growth as Net Sales has grown by an annual rate of -0.30% and Operating profit at -5.98% over the last 5 years
4
The company declared very negative results in Mar'25 after flat results in Dec'24
- INTEREST(HY) At JPY 3.04 MM has Grown at 101.86%
5
With ROE of 12.41%, it has a very attractive valuation with a 1.59 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 17.72%, its profits have fallen by -8.7%
6
Underperformed the market in the last 1 year
- The stock has generated a return of 17.72% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 28.54%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to TOW Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Media & Entertainment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is TOW Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
TOW Co., Ltd.
17.72%
0.12
22.61%
Japan Nikkei 225
28.54%
1.11
25.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-0.30%
EBIT Growth (5y)
-5.98%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.69
Sales to Capital Employed (avg)
1.55
Tax Ratio
31.16%
Dividend Payout Ratio
54.12%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
41.68%
ROE (avg)
9.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
1.59
EV to EBIT
5.14
EV to EBITDA
4.96
EV to Capital Employed
2.87
EV to Sales
0.52
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
55.94%
ROE (Latest)
12.41%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend16What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -43.55% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 151.2%
DIVIDEND PER SHARE(HY)
Highest at JPY 4.86
NET SALES(Q)
Highest at JPY 5,258.47 MM
OPERATING PROFIT(Q)
Highest at JPY 819.43 MM
OPERATING PROFIT MARGIN(Q)
Highest at 15.58 %
PRE-TAX PROFIT(Q)
Highest at JPY 808.31 MM
NET PROFIT(Q)
Highest at JPY 763.35 MM
-8What is not working for the Company
INTEREST(HY)
At JPY 3.04 MM has Grown at 101.86%
Here's what is working for TOW Co., Ltd.
Net Sales
At JPY 5,258.47 MM has Grown at 24.64%
over average net sales of the previous four periods of JPY 4,218.8 MMMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Net Profit
At JPY 763.35 MM has Grown at 153.16%
over average net sales of the previous four periods of JPY 301.53 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (JPY MM)
Net Sales
Highest at JPY 5,258.47 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 819.43 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 15.58 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 808.31 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Pre-Tax Profit
At JPY 808.31 MM has Grown at 84.53%
over average net sales of the previous four periods of JPY 438.03 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 763.35 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Inventory Turnover Ratio
Highest at 151.2%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend per share
Highest at JPY 4.86
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (JPY)
Raw Material Cost
Fallen by -43.55% (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 21.37 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 TOW Co., Ltd.
Interest
At JPY 3.04 MM has Grown at 101.86%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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