Why is Towa Corp. ?
1
Negative results in Dec 25
- ROCE(HY) Lowest at 8.69%
- NET PROFIT(Q) At JPY 777.32 MM has Fallen at -45.49%
- RAW MATERIAL COST(Y) Grown by 12.15% (YoY)
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 Towa Corp. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Towa Corp.
44.2%
-0.50
72.11%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
16.19%
EBIT Growth (5y)
61.34%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.19
Sales to Capital Employed (avg)
0.73
Tax Ratio
27.54%
Dividend Payout Ratio
18.47%
Pledged Shares
0
Institutional Holding
1.60%
ROCE (avg)
19.89%
ROE (avg)
13.69%
Valuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
1.88
EV to EBIT
11.65
EV to EBITDA
8.84
EV to Capital Employed
2.08
EV to Sales
1.93
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
17.87%
ROE (Latest)
13.24%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
3What is working for the Company
DEBT-EQUITY RATIO
(HY)
Lowest at -18.2 %
CASH AND EQV(HY)
Highest at JPY 54,462.04 MM
-20What is not working for the Company
ROCE(HY)
Lowest at 8.69%
NET PROFIT(Q)
At JPY 777.32 MM has Fallen at -45.49%
RAW MATERIAL COST(Y)
Grown by 12.15% (YoY
INTEREST(Q)
Highest at JPY 44.82 MM
PRE-TAX PROFIT(Q)
At JPY 1,299.48 MM has Fallen at -33.92%
Here's what is working for Towa Corp.
Debt-Equity Ratio
Lowest at -18.2 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Cash and Eqv
Highest at JPY 54,462.04 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at JPY 844.45 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 Towa Corp.
Interest
At JPY 44.82 MM has Grown at 27.4%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 777.32 MM has Fallen at -45.49%
over average net sales of the previous four periods of JPY 1,425.98 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Interest
Highest at JPY 44.82 MM
in the last five periods and Increased by 27.4% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Pre-Tax Profit
At JPY 1,299.48 MM has Fallen at -33.92%
over average net sales of the previous four periods of JPY 1,966.46 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Raw Material Cost
Grown by 12.15% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales






