ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Towa Pharmaceutical Co., Ltd. ?
1
The company is Net-Debt Free
- Poor long term growth as Operating profit has grown by an annual rate 7.49% of over the last 5 years
- The company is Net-Debt Free
2
The company declared negative results in Mar'26 after flat results in Dec'25
- INTEREST(HY) At JPY 1,112 MM has Grown at 30.67%
- ROCE(HY) Lowest at 3%
- INTEREST COVERAGE RATIO(Q) Lowest at 1,665.86
3
With ROCE of 6.51%, it has a attractive valuation with a 1.06 Enterprise value to Capital Employed
- 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 31.47%, its profits have risen by 9.7% ; the PEG ratio of the company is 1.2
4
Underperformed the market in the last 1 year
- The stock has generated a return of 31.47% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 81.96%
Real-Time Research ReportHow 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 Pharmaceuticals & Biotechnology)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Towa Pharmaceutical Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Towa Pharmaceutical Co., Ltd.
30.69%
0.98
36.80%
Japan Nikkei 225
81.96%
2.98
27.54%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.83%
EBIT Growth (5y)
7.49%
EBIT to Interest (avg)
46.00
Debt to EBITDA (avg)
3.98
Net Debt to Equity (avg)
1.01
Sales to Capital Employed (avg)
0.66
Tax Ratio
27.89%
Dividend Payout Ratio
18.15%
Pledged Shares
0
Institutional Holding
0.02%
ROCE (avg)
6.69%
ROE (avg)
9.32%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.12
EV to EBIT
16.29
EV to EBITDA
8.50
EV to Capital Employed
1.06
EV to Sales
1.46
PEG Ratio
1.19
Dividend Yield
NA
ROCE (Latest)
6.51%
ROE (Latest)
9.73%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
No Trend
Mildly Bearish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 30,429 MM
CASH AND EQV(HY)
Highest at JPY 85,125 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 101.87 %
-24What is not working for the Company
INTEREST(HY)
At JPY 1,112 MM has Grown at 30.67%
ROCE(HY)
Lowest at 3%
INTEREST COVERAGE RATIO(Q)
Lowest at 1,665.86
DIVIDEND PAYOUT RATIO(Y)
Lowest at 0%
RAW MATERIAL COST(Y)
Grown by 5.59% (YoY
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.51 times
OPERATING PROFIT(Q)
Lowest at JPY 9,662 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 13.87 %
PRE-TAX PROFIT(Q)
Lowest at JPY 3,215 MM
NET PROFIT(Q)
Lowest at JPY 2,168 MM
EPS(Q)
Lowest at JPY -240.35
Here's what is working for Towa Pharmaceutical Co., Ltd.
Operating Cash Flow
Highest at JPY 30,429 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (JPY MM)
Cash and Eqv
Highest at JPY 85,125 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 101.87 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at JPY 6,051 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 Pharmaceutical Co., Ltd.
Interest
At JPY 1,112 MM has Grown at 30.67%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Interest Coverage Ratio
Lowest at 1,665.86
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At JPY 3,215 MM has Fallen at -47.2%
over average net sales of the previous four periods of JPY 6,088.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (JPY MM)
Net Profit
At JPY 2,168 MM has Fallen at -53.01%
over average net sales of the previous four periods of JPY 4,613.68 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (JPY MM)
Operating Profit
Lowest at JPY 9,662 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (JPY MM)
Operating Profit Margin
Lowest at 13.87 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at JPY 3,215 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (JPY MM)
Net Profit
Lowest at JPY 2,168 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
EPS
Lowest at JPY -240.35
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (JPY)
Inventory Turnover Ratio
Lowest at 1.51 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Dividend Payout Ratio
Lowest at 0%
in the last five yearsMOJO Watch
Company is distributing lower proportion of profits generated as dividend
DPR (%)
Raw Material Cost
Grown by 5.59% (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
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