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Tomoegawa Corporation
(3878)
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Rating:57Neutral
Price Target:
¥908.00
▲(17.62% Upside)
Action:Reiterated
Date:07/24/26
The score is driven primarily by mixed financial performance: a healthier balance sheet and improving gross margin are offset by weaker profitability versus prior peaks and poor/volatile free cash flow conversion. Valuation is a positive (low P/E with a modest yield), while technical indicators are a headwind due to negative MACD and sub-50 RSI.
Positive Factors
Improving revenue and gross margin
Recent revenue stabilization alongside improving gross margin indicates better pricing, mix, or production economics. If sustained, this combination can support stronger operating resilience and partially offset cost pressure in the specialty materials business.
Negative Factors
Persistent margin compression
The sustained decline in operating and net margins shows that improved gross margin has not translated fully into bottom-line earnings. This may indicate continuing overhead, pricing, mix, or competitive pressures that limit earnings quality.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving revenue and gross margin
Recent revenue stabilization alongside improving gross margin indicates better pricing, mix, or production economics. If sustained, this combination can support stronger operating resilience and partially offset cost pressure in the specialty materials business.
Read all positive factors
Tomoegawa Corporation (3878) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.87B
Dividend Yield1.71%
Average Volume (3M)17.62K
Price to Earnings (P/E)7.0
Beta (1Y)1.12
Revenue Growth7.74%
EPS Growth82.31%
CountryJP
Employees1,346
SectorBasic Materials
Sector Strength58
IndustryPaper, Lumber & Forest Products
Share Statistics
EPS (TTM)125.76
Shares Outstanding10,389,406
10 Day Avg. Volume10,440
30 Day Avg. Volume17,616
Financial Highlights & Ratios
PEG Ratio0.26
Price to Book (P/B)0.43
Price to Sales (P/S)0.21
P/FCF Ratio1.26K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Tomoegawa Corporation Business Overview & Revenue Model
Company Description
Tomoegawa Co., Ltd., founded in Tokyo, Japan, in 1914, is a multifaceted enterprise engaged in the manufacturing, processing, and sale of an extensive array of advanced materials, primarily serving the Japanese market. Their diverse product lineup...
How the Company Makes Money
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Tomoegawa Corporation Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
61
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.13B | 35.55B | 34.43B | 33.69B | 34.17B | 32.78B |
| Gross Profit | 8.81B | 8.28B | 7.87B | 7.37B | 7.53B | 6.76B |
| EBITDA | 3.95B | 3.55B | 3.41B | 3.24B | 4.24B | 4.52B |
| Net Income | 1.24B | 945.00M | 750.00M | 594.00M | 1.45B | 1.65B |
Balance Sheet | ||||||
| Total Assets | 52.95B | 50.94B | 46.09B | 45.71B | 42.95B | 43.57B |
| Cash, Cash Equivalents and Short-Term Investments | 6.15B | 5.10B | 4.92B | 5.42B | 4.35B | 4.83B |
| Total Debt | 14.95B | 15.14B | 14.02B | 12.83B | 12.71B | 12.65B |
| Total Liabilities | 29.53B | 28.45B | 26.45B | 26.31B | 24.57B | 25.96B |
| Stockholders Equity | 18.49B | 17.67B | 15.24B | 14.70B | 14.03B | 13.48B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 6.00M | -613.00M | 2.45B | 116.00M | 2.44B |
| Operating Cash Flow | 0.00 | 3.34B | 1.80B | 4.18B | 1.01B | 3.36B |
| Investing Cash Flow | 0.00 | -3.73B | -2.76B | -1.74B | -54.00M | -217.00M |
| Financing Cash Flow | 0.00 | 473.00M | 500.00M | -1.65B | -1.57B | -2.65B |
Tomoegawa Corporation Technical Analysis
Positive
772.00
Price Trends
820.54
Positive
843.92
Positive
818.19
Positive
Market Momentum
18.52
Positive
56.41
Neutral
48.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3878, the sentiment is Positive. The current price of 772 is below the 20-day moving average (MA) of 868.20, below the 50-day MA of 820.54, and below the 200-day MA of 818.19, indicating a bullish trend. The MACD of 18.52 indicates Positive momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 48.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3878.
Tomoegawa Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ¥81.96B | 16.52 | ― | 2.67% | -0.03% | 30.67% | |
63 Neutral | ¥379.62B | 19.07 | 7.13% | 1.80% | 2.68% | 58.48% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | ¥8.87B | 6.97 | ― | 1.90% | 7.74% | 82.31% | |
57 Neutral | ¥53.03B | 9.78 | 2.17% | 2.31% | -8.09% | 76.25% | |
56 Neutral | ¥162.32B | 16.79 | 2.43% | 0.99% | 2.22% | 27.47% | |
52 Neutral | ¥163.55B | 20.30 | 3.83% | 1.53% | 1.33% | ― |
* Basic Materials Sector Average
JP:3878
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.