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Howa Machinery, Ltd.
(6203)
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Rating:61Neutral
Price Target:
¥2,541.00
▲(113.17% Upside)
Action:Reiterated
Date:09/18/26
The score is driven primarily by mixed financial performance—healthy leverage and a rebound in earnings/cash flow, but uneven revenue trends, thin margins, and historically volatile cash generation. Technicals are a clear positive with strong price trend and supportive momentum. Valuation is the main headwind due to a high P/E and low dividend yield.
Positive Factors
Improving Balance Sheet
Falling leverage and a growing equity base strengthen Howa Machinery’s financial resilience. This provides more flexibility to support industrial equipment investment, withstand demand fluctuations, and pursue opportunities without relying as heavily on additional borrowing.
Negative Factors
Revenue Contraction
The uneven revenue record suggests inconsistent demand across Howa Machinery’s industrial and specialized equipment activities. A renewed decline can limit operating leverage, weaken planning visibility, and make it harder for the company to sustain earnings growth over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Balance Sheet
Falling leverage and a growing equity base strengthen Howa Machinery’s financial resilience. This provides more flexibility to support industrial equipment investment, withstand demand fluctuations, and pursue opportunities without relying as heavily on additional borrowing.
Read all positive factors
Howa Machinery, Ltd. (6203) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥29.13B
Dividend Yield0.82%
Average Volume (3M)5.33M
Price to Earnings (P/E)39.0
Beta (1Y)1.09
Revenue Growth-7.53%
EPS Growth-13.28%
CountryJP
Employees706
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)64.29
Shares Outstanding12,548,134
10 Day Avg. Volume2,787,460
30 Day Avg. Volume5,334,056
Financial Highlights & Ratios
PEG Ratio-19.81
Price to Book (P/B)0.81
Price to Sales (P/S)0.71
P/FCF Ratio3.76
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)99.4
Revenue Forecast (FY)¥23.50B
Howa Machinery, Ltd. Business Overview & Revenue Model
Company Description
Howa Machinery, Ltd., based in Kiyosu, Japan, offers a diverse array of industrial products. Its offerings include sophisticated machine tools, such as precision machining centers, comprehensive transfer lines, and dedicated machine tool units for...
How the Company Makes Money
Howa Machinery makes money primarily by manufacturing and selling industrial machinery and equipment and by providing associated services tied to those products. A key revenue stream comes from sales of machine tools and manufacturing systems (e.g...
Howa Machinery, Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
70
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.55B | 24.06B | 24.83B | 19.79B | 19.74B | 19.70B |
| Gross Profit | 4.27B | 4.23B | 4.20B | 3.49B | 3.63B | 3.96B |
| EBITDA | 1.75B | 1.78B | 1.72B | -189.00M | 1.14B | 1.42B |
| Net Income | 777.00M | 741.00M | 749.00M | -873.00M | 524.00M | 1.06B |
Balance Sheet | ||||||
| Total Assets | 37.25B | 35.83B | 34.05B | 30.29B | 27.62B | 27.67B |
| Cash, Cash Equivalents and Short-Term Investments | 6.86B | 6.19B | 2.92B | 3.90B | 3.33B | 4.42B |
| Total Debt | 6.56B | 6.76B | 7.97B | 6.24B | 3.52B | 3.27B |
| Total Liabilities | 14.86B | 14.80B | 15.31B | 12.95B | 10.27B | 10.78B |
| Stockholders Equity | 22.35B | 21.02B | 18.74B | 17.33B | 17.35B | 16.89B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 4.53B | -2.32B | -2.23B | -1.14B | 2.38B |
| Operating Cash Flow | 0.00 | 4.81B | 55.00M | -1.07B | -506.00M | 3.05B |
| Investing Cash Flow | 0.00 | -120.00M | -2.55B | -871.00M | -608.00M | -544.00M |
| Financing Cash Flow | 0.00 | -1.44B | 1.49B | 2.48B | 22.00M | -1.61B |
Howa Machinery, Ltd. Technical Analysis
Positive
1192.00
Price Trends
1731.38
Positive
1653.76
Positive
1554.37
Positive
Market Momentum
220.15
Positive
59.94
Neutral
37.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6203, the sentiment is Positive. The current price of 1192 is below the 20-day moving average (MA) of 2145.25, below the 50-day MA of 1731.38, and below the 200-day MA of 1554.37, indicating a bullish trend. The MACD of 220.15 indicates Positive momentum. The RSI at 59.94 is Neutral, neither overbought nor oversold. The STOCH value of 37.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6203.
Howa Machinery, Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ¥378.10B | 14.41 | 10.02% | 13.94% | 15.90% | 104.65% | |
75 Outperform | ¥60.34B | 17.30 | ― | 3.21% | -1.63% | -23.69% | |
64 Neutral | ¥86.69B | 11.70 | 8.18% | 2.04% | 14.68% | 69.21% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ¥29.13B | 38.96 | ― | 0.82% | -7.53% | -13.28% | |
52 Neutral | ¥32.55B | 34.55 | ― | 3.28% | -6.36% | -61.60% | |
47 Neutral | ¥106.18B | 44.82 | 2.15% | 2.91% | -21.58% | -98.64% |
* Industrials Sector Average
JP:6203
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Howa Machinery, Ltd. Corporate Events
Howa Machinery Lifts Profit and Capital Strength Despite Sales Decline
Aug 6, 2026
Howa Machinery reported a 10% year-on-year decline in net sales to ¥4.67 billion for the quarter ended June 2026, even as operating profit held nearly flat at ¥430 million and ordinary profit rose 11.2%. Profit attributable to owners of ...
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.