ScoreComparison
Company
Score
Quality
Valuation
Financial
Technical
Why is Towa Pharmaceutical Co., Ltd. ?
1
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Operating profit has grown by an annual rate 7.53% of over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
Positive results in Dec 25
- OPERATING CASH FLOW(Y) Highest at JPY 30,829 MM
- RAW MATERIAL COST(Y) Fallen by -3.36% (YoY)
- CASH AND EQV(HY) Highest at JPY 89,395 MM
3
With ROCE of 6.73%, it has a very attractive valuation with a 0.98 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 43.19%, its profits have risen by 43.1% ; the PEG ratio of the company is 0.2
4
Consistent Returns over the last 3 years
- Along with generating 43.19% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Towa Pharmaceutical 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 Pharmaceutical Co., Ltd. for you?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Towa Pharmaceutical Co., Ltd.
43.19%
1.17
35.63%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
18.65%
EBIT Growth (5y)
7.53%
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
9
Industry P/E
Price to Book Value
0.96
EV to EBIT
14.54
EV to EBITDA
7.80
EV to Capital Employed
0.98
EV to Sales
1.30
PEG Ratio
0.21
Dividend Yield
NA
ROCE (Latest)
6.73%
ROE (Latest)
10.56%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
OPERATING CASH FLOW(Y)
Highest at JPY 30,829 MM
RAW MATERIAL COST(Y)
Fallen by -3.36% (YoY
CASH AND EQV(HY)
Highest at JPY 89,395 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 102.19 %
NET SALES(Q)
Highest at JPY 73,589 MM
OPERATING PROFIT(Q)
Highest at JPY 14,928 MM
OPERATING PROFIT MARGIN(Q)
Highest at 20.29 %
PRE-TAX PROFIT(Q)
Highest at JPY 8,972 MM
NET PROFIT(Q)
Highest at JPY 6,633.07 MM
EPS(Q)
Highest at JPY 180.14
-10What is not working for the Company
INTEREST(HY)
At JPY 1,141 MM has Grown at 37.3%
INVENTORY TURNOVER RATIO(HY)
Lowest at 1.49 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 3.37 times
Here's what is working for Towa Pharmaceutical Co., Ltd.
Operating Cash Flow
Highest at JPY 30,829 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)
Net Sales
Highest at JPY 73,589 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 14,928 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 20.29 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 8,972 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 6,633.07 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 180.14
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 89,395 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 102.19 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -3.36% (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
Depreciation
Highest at JPY 5,880 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 1,141 MM has Grown at 37.3%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (JPY MM)
Inventory Turnover Ratio
Lowest at 1.49 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 3.37 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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