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Tomoegawa Corporation
(3878)
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Rating:65Neutral
Price Target:
¥1,026.00
▲(32.90% Upside)
Action:Reiterated
Date:10/01/26
The score is supported by attractive valuation (low P/E) and a constructive technical uptrend (price above key moving averages, positive MACD). Offsetting this, overall financial performance is only moderate due to weaker profitability versus prior peaks and especially volatile cash generation with free cash flow currently near breakeven and not tracking earnings.
Positive Factors
Improving Revenue and Gross Margin
The recent return to revenue growth alongside steadily improving gross margin indicates better operating momentum and product economics. Although growth is modest, stronger gross profitability can support reinvestment and provide a more durable base for earnings across the next several quarters.
Negative Factors
Weak and Volatile Free Cash Flow
Near-zero recent free cash flow limits the cash available for debt reduction, shareholder returns, or strategic investment. The sharp variability across years also makes earnings conversion less dependable, increasing the risk that reported profitability will not translate into financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Revenue and Gross Margin
The recent return to revenue growth alongside steadily improving gross margin indicates better operating momentum and product economics. Although growth is modest, stronger gross profitability can support reinvestment and provide a more durable base for earnings across the next several quarters.
Read all positive factors
Tomoegawa Corporation (3878) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥8.84B
Dividend Yield1.57%
Average Volume (3M)29.60K
Price to Earnings (P/E)7.6
Beta (1Y)1.16
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. Volume15,050
30 Day Avg. Volume29,603
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
Tomoegawa generally makes money by manufacturing and selling specialty paper and functional material products to business customers (B2B). Revenue is primarily generated through (1) sales of in-house manufactured functional papers/sheets and proce...
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
850.04
Positive
839.10
Positive
828.40
Positive
Market Momentum
9.07
Negative
76.32
Negative
67.59
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 854.60, below the 50-day MA of 850.04, and below the 200-day MA of 828.40, indicating a bullish trend. The MACD of 9.07 indicates Negative momentum. The RSI at 76.32 is Negative, neither overbought nor oversold. The STOCH value of 67.59 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 | ¥79.56B | 16.39 | ― | 3.58% | -0.03% | 30.67% | |
65 Neutral | ¥8.84B | 7.55 | ― | 1.57% | 7.74% | 82.31% | |
63 Neutral | ¥401.43B | 20.31 | 7.58% | 1.95% | 2.68% | 58.48% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | ¥54.10B | 10.11 | 5.78% | 1.76% | -8.09% | 76.25% | |
54 Neutral | ¥150.89B | 15.68 | 1.94% | 1.14% | 2.22% | 27.47% | |
52 Neutral | ¥160.06B | 19.83 | 3.48% | 1.44% | 1.33% | ― |
* Basic Materials Sector Average
JP:3878
Tomoegawa Corporation
954.00
205.99
27.54%
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50.54%
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.