ScoreWhy is TOWA Hi SYSTEM Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 0.66% and Operating profit at 0.89% over the last 5 years
3
With a growth in Operating Profit of 22.13%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 2 consecutive quarters
- RAW MATERIAL COST(Y) Fallen by -2.79% (YoY)
- INVENTORY TURNOVER RATIO(HY) Highest at 4.58 times
- OPERATING PROFIT(Q) Highest at JPY 217.22 MM
4
With ROE of 10.76%, it has a very attractive valuation with a 1.26 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 -7.97%, its profits have fallen by -1.7%
5
Below par performance in long term as well as near term
- Along with generating -7.97% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to TOWA Hi SYSTEM Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is TOWA Hi SYSTEM Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
TOWA Hi SYSTEM Co., Ltd.
-7.97%
0.92
17.95%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.66%
EBIT Growth (5y)
0.89%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.44
Sales to Capital Employed (avg)
0.54
Tax Ratio
32.02%
Dividend Payout Ratio
46.24%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
19.67%
ROE (avg)
9.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.26
EV to EBIT
6.51
EV to EBITDA
5.58
EV to Capital Employed
1.43
EV to Sales
1.52
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
22.01%
ROE (Latest)
10.76%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -2.79% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 4.58 times
OPERATING PROFIT(Q)
Highest at JPY 217.22 MM
PRE-TAX PROFIT(Q)
Highest at JPY 258.56 MM
NET PROFIT(Q)
Highest at JPY 169.52 MM
EPS(Q)
Highest at JPY 65.12
-2What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for TOWA Hi SYSTEM Co., Ltd.
Operating Profit
Highest at JPY 217.22 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Pre-Tax Profit
Highest at JPY 258.56 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 258.56 MM has Grown at 55.99%
over average net sales of the previous four periods of JPY 165.75 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 169.52 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 65.12
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Highest at 4.58 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -2.79% (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
Here's what is not working for TOWA Hi SYSTEM Co., Ltd.
Non Operating Income
Highest at JPY 0.3 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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