Towa Corp. (6315) 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

Takasago Thermal Engineering Co., Ltd.

Max Co., Ltd.

Organo Corp.

CKD Corp.

Tsubakimoto Chain Co.

OSG Corp. (6136)

The Japan Steel Works Ltd.

Makino Milling Machine Co., Ltd.

Towa Corp.

Shibaura Machine Co., Ltd.

Mitsubishi Logisnext Co., Ltd.

Why is Towa Corp. ?

Negative results in Jun 25

INTEREST(HY) At JPY 54.8 MM has Grown at 43.25%
ROCE(HY) Lowest at 9.84%
INTEREST COVERAGE RATIO(Q) Lowest at 525.43

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 Towa Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Towa Corp.

31.94%

-0.60

73.96%

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)

16.19%

EBIT Growth (5y)

61.34%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

0.75

Tax Ratio

27.54%

Dividend Payout Ratio

18.47%

Pledged Shares

Institutional Holding

1.60%

ROCE (avg)

19.89%

ROE (avg)

13.69%

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

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

Dividend Yield

ROCE (Latest)

17.87%

ROE (Latest)

13.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -17.26 %

CASH AND EQV(HY)

Highest at JPY 44,944.37 MM

-43What is not working for the Company

INTEREST(HY)

At JPY 54.8 MM has Grown at 43.25%

ROCE(HY)

Lowest at 9.84%

INTEREST COVERAGE RATIO(Q)

Lowest at 525.43

RAW MATERIAL COST(Y)

Grown by 26.73% (YoY

NET SALES(Q)

Lowest at JPY 8,080.22 MM

OPERATING PROFIT(Q)

Lowest at JPY 143.87 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.78 %

PRE-TAX PROFIT(Q)

Lowest at JPY -734.3 MM

NET PROFIT(Q)

Lowest at JPY -528.87 MM

EPS(Q)

Lowest at JPY -7.05

Here's what is working for Towa Corp.

Debt-Equity Ratio

Lowest at -17.26 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at JPY 44,944.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Towa Corp.

Interest

At JPY 54.8 MM has Grown at 43.25%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

At JPY 8,080.22 MM has Fallen at -39.56%

over average net sales of the previous four periods of JPY 13,369.8 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -734.3 MM has Fallen at -127.46%

over average net sales of the previous four periods of JPY 2,674.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -528.87 MM has Fallen at -127.28%

over average net sales of the previous four periods of JPY 1,938.52 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest Coverage Ratio

Lowest at 525.43

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at JPY 8,080.22 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 143.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 1.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -734.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY -528.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY -7.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Raw Material Cost

Grown by 26.73% (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