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Towa Corporation
(6315)
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Rating:60Neutral
Price Target:
¥2,371.00
▼(-10.02% Downside)
Action:Reiterated
Date:08/20/26
The score is primarily supported by generally solid historical profitability and a relatively conservative balance sheet, but it is held back by FY2026 earnings softness and sharply weaker/free cash flow. Technicals further weigh on the score due to a clear downtrend (price below key moving averages and negative MACD), while valuation is only neutral with a mid-range P/E and low dividend yield.
Positive Factors
Long-term revenue expansion
Revenue growth of this magnitude indicates expanded demand for TOWA’s semiconductor packaging equipment and a stronger business scale. Although annual growth has been uneven, the larger revenue base supports broader customer penetration and future operating leverage.
Negative Factors
FY2026 earnings deterioration
The decline in EBIT and net income signals pressure on operating leverage or margins after several stronger years. If weaker profitability persists, it could reduce internal funding capacity and make the company more sensitive to execution and demand changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Long-term revenue expansion
Revenue growth of this magnitude indicates expanded demand for TOWA’s semiconductor packaging equipment and a stronger business scale. Although annual growth has been uneven, the larger revenue base supports broader customer penetration and future operating leverage.
Read all positive factors
Towa Corporation (6315) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥175.64B
Dividend Yield0.86%
Average Volume (3M)6.94M
Price to Earnings (P/E)25.6
Beta (1Y)1.95
Revenue Growth29.32%
EPS Growth14.84%
CountryJP
Employees2,211
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)90.36
Shares Outstanding75,167,950
10 Day Avg. Volume5,118,940
30 Day Avg. Volume6,944,783
Financial Highlights & Ratios
PEG Ratio-0.83
Price to Book (P/B)2.36
Price to Sales (P/S)3.06
P/FCF Ratio3.24K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,666.67Price Target Upside39.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)116.87
Revenue Forecast (FY)¥68.22B
Towa Corporation Business Overview & Revenue Model
Company Description
TOWA Corporation, headquartered in Kyoto, Japan, specializes in the design, development, production, and distribution of semiconductor manufacturing equipment and high-precision molds for both domestic and global markets. The company's diverse por...
How the Company Makes Money
TOWA makes money primarily by selling semiconductor packaging equipment (capital equipment) to semiconductor makers and OSATs. Its core revenue stream is the manufacture and sale of molding/encapsulation-related systems used in the back-end of sem...
Towa Corporation Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.47B | 54.37B | 53.48B | 50.47B | 53.82B | 50.67B |
| Gross Profit | 21.67B | 18.37B | 19.87B | 18.20B | 18.81B | 18.65B |
| EBITDA | 12.62B | 7.17B | 14.12B | 11.87B | 12.87B | 13.71B |
| Net Income | 6.78B | 4.59B | 8.12B | 6.44B | 7.35B | 8.13B |
Balance Sheet | ||||||
| Total Assets | 116.41B | 106.27B | 83.23B | 87.86B | 73.47B | 71.33B |
| Cash, Cash Equivalents and Short-Term Investments | 29.72B | 28.43B | 21.34B | 20.83B | 16.55B | 12.41B |
| Total Debt | 20.59B | 18.17B | 10.06B | 14.02B | 15.87B | 10.42B |
| Total Liabilities | 40.88B | 35.66B | 21.84B | 29.43B | 25.85B | 30.21B |
| Stockholders Equity | 75.53B | 70.61B | 61.39B | 58.44B | 47.22B | 40.73B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 51.38M | 5.33B | 8.00B | 99.81M | 1.13B |
| Operating Cash Flow | 0.00 | 4.12B | 10.37B | 9.67B | 2.83B | 6.40B |
| Investing Cash Flow | 0.00 | -5.53B | -4.76B | -2.77B | -2.75B | -6.60B |
| Financing Cash Flow | 0.00 | 6.43B | -5.13B | -3.52B | 3.96B | 1.93B |
Towa Corporation Technical Analysis
Negative
2635.00
Price Trends
2881.38
Negative
2833.66
Negative
2664.62
Negative
Market Momentum
-158.66
Positive
39.11
Neutral
26.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6315, the sentiment is Negative. The current price of 2635 is above the 20-day moving average (MA) of 2507.95, below the 50-day MA of 2881.38, and below the 200-day MA of 2664.62, indicating a bearish trend. The MACD of -158.66 indicates Positive momentum. The RSI at 39.11 is Neutral, neither overbought nor oversold. The STOCH value of 26.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:6315.
Towa Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ¥739.53B | 29.09 | 13.70% | 1.50% | 13.77% | 3.10% | |
66 Neutral | ¥97.01B | 13.31 | ― | 1.72% | 38.30% | 75.21% | |
63 Neutral | ¥477.15B | 12.89 | 6.34% | 1.70% | 42.63% | 139.80% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | ¥175.64B | 25.62 | 7.01% | 1.00% | 29.32% | 14.84% | |
54 Neutral | ¥171.42B | 25.92 | ― | 2.45% | 2.92% | -19.54% | |
51 Neutral | ¥1.24T | -42.94 | ― | 0.53% | 3.86% | -368.04% |
* Technology Sector Average
JP:6315
Towa Corporation
2,315.00
612.33
35.96%
JP:6890
Ferrotec Holdings
8,910.00
5,260.89
144.17%
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9,829.77
118.86%
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SUMCO Corporation
3,405.00
2,160.53
173.61%
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Japan Electronic Materials Corporation
6,390.00
3,607.81
129.68%
JP:6966
Mitsui High-Tec, Inc.
933.00
102.44
12.33%
Towa Corporation Corporate Events
Towa Completes Restricted Stock Issuance for Management Compensation
Aug 18, 2026
Towa Corporation has completed payment procedures for the issuance of 10,584 new shares of common stock as restricted stock compensation, following a board resolution passed on July 23, 2026. The shares, priced at 2,860 yen each for a total of 30,...
Towa Corporation Posts Strong Q1 Rebound and Affirms Full-Year Outlook
Aug 6, 2026
Towa Corporation reported a sharp rebound in earnings for the three months ended June 30, 2026, with net sales doubling year on year to ¥16.18 billion and profit attributable to owners of the parent reaching ¥1.66 billion, reversing a lo...
Towa issues restricted stock to align executive pay with long-term value
Jul 23, 2026
Towa Corporation’s board has approved the issuance of 10,584 new common shares as restricted stock compensation to five directors and five executive officers, valued at about ¥30.27 million at an issue price of ¥2,860 per share. Th...
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.