Why is Towa Corp. ?
1
High Management Efficiency with a high ROE of 13.57%
2
Company has very low debt and has enough cash to service the debt requirements
3
Healthy long term growth as Net Sales has grown by an annual rate of 13.49% and Operating profit at 15.43%
4
The company has declared Negative results for the last 6 consecutive quarters
- NET PROFIT(HY) At JPY 2,743.26 MM has Grown at -30%
- ROCE(HY) Lowest at 6.96%
- INTEREST(Q) Highest at JPY 61.01 MM
5
With ROE of 7.64%, it has a expensive valuation with a 2.97 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 99.22%, its profits have fallen by -39.3%
6
Majority shareholders : FIIs
7
Market Beating Performance
- The stock has generated a return of 99.22% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 85.12%
How much should you hold?
- Overall Portfolio exposure to Towa Corp. should be less than 10%
- Overall Portfolio exposure to Industrial Manufacturing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Towa Corp. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Towa Corp.
102.17%
-0.16
72.99%
Japan Nikkei 225
88.41%
3.12
27.27%
Quality key factors
Factor
Value
Sales Growth (5y)
13.49%
EBIT Growth (5y)
15.43%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.19
Sales to Capital Employed (avg)
0.71
Tax Ratio
27.54%
Dividend Payout Ratio
18.47%
Pledged Shares
0
Institutional Holding
1.60%
ROCE (avg)
19.89%
ROE (avg)
13.57%
Valuation Key Factors 
Factor
Value
P/E Ratio
39
Industry P/E
Price to Book Value
2.97
EV to EBIT
31.22
EV to EBITDA
20.64
EV to Capital Employed
3.41
EV to Sales
3.68
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
10.93%
ROE (Latest)
7.64%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
8What is working for the Company
CASH AND EQV(HY)
Highest at JPY 58,368.03 MM
NET SALES(Q)
Highest at JPY 17,434.93 MM
OPERATING PROFIT(Q)
Highest at JPY 4,140.88 MM
PRE-TAX PROFIT(Q)
At JPY 3,227.16 MM has Grown at 76.67%
-15What is not working for the Company
NET PROFIT(HY)
At JPY 2,743.26 MM has Grown at -30%
ROCE(HY)
Lowest at 6.96%
INTEREST(Q)
Highest at JPY 61.01 MM
Here's what is working for Towa Corp.
Net Sales
At JPY 17,434.93 MM has Grown at 36.34%
over average net sales of the previous four periods of JPY 12,787.52 MMMOJO Watch
Near term sales trend is very positive
Net Sales (JPY MM)
Net Sales
Highest at JPY 17,434.93 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 4,140.88 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
At JPY 3,227.16 MM has Grown at 76.67%
over average net sales of the previous four periods of JPY 1,826.65 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Cash and Eqv
Highest at JPY 58,368.03 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at JPY 909.28 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 61.01 MM has Grown at 36.11%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Net Profit
At JPY 2,743.26 MM has Grown at -30%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Interest
Highest at JPY 61.01 MM
in the last five periods and Increased by 36.11% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)






