KOWA CO. LTD. (7807) AI Stock Analysis

• Market Cap: ¥4.25B
• Dividend Yield: 1.42%
• Average Volume (3M): 3.78K
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.46
• Revenue Growth: 0.28%
• EPS Growth: -27.08%
• Country: JP
• Employees: 213
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 28.19
• Shares Outstanding: 5,025,970
• 10 Day Avg. Volume: 3,570
• 30 Day Avg. Volume: 3,780
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥914.00
• Price Target Upside: 8.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: ¥914.00 ▲(8.94% Upside)

KOWA CO. LTD. achieves a strong overall stock score driven primarily by its solid financial performance and attractive valuation. The technical analysis supports a stable outlook, although minor concerns about asset growth and revenue dip slightly temper the score.

KOWA CO. LTD. Business Overview & Revenue Model

Company Description

Kowa Co.,Ltd. engages in the manufacture and sale of nursing care products and welfare equipment in Japan. The company offers silver cars, walking cars, and canes for walking assistance. It is also involved in the rental of welfare equipment and day care service business. The company sells its nursing care products through mail order and online. The company was founded in 1965 and is headquartered in Osaka, Japan.

How the Company Makes Money

KOWA CO. LTD. generates revenue through multiple streams, predominantly from the sale of its pharmaceutical products, which include prescription medications and over-the-counter health products. The company leverages its extensive research and development capabilities to create innovative healthcare solutions, which are marketed domestically and internationally. Additionally, KOWA earns revenue from its consumer goods division, which includes items such as cosmetics and health supplements. Strategic partnerships with healthcare providers and distributors enhance its market reach, while collaborations with other pharmaceutical firms can lead to co-development opportunities that boost revenue. The company also benefits from licensing agreements and royalties from its patented products, further diversifying its income sources.

KOWA CO. LTD. Financial Statement Overview

Summary

KOWA CO. LTD. demonstrates strong financial performance with consistent profitability, effective debt management, and robust cash flow generation. Despite minor concerns about asset growth and a revenue dip in 2025, the company's financial health is commendable.

Income Statement

KOWA CO. LTD. has demonstrated strong profitability with a consistent increase in gross and net profit margins over the past few years. The gross profit margin has remained robust, and the net profit margin improved significantly from a loss in 2020 to a healthy positive in 2025. Revenue growth has been stable, although there was a slight dip in 2025 compared to 2024. The EBIT and EBITDA margins have also shown positive trends, indicating efficient cost management and operational strength.

Balance Sheet

The company's balance sheet reflects strong equity growth with a solid equity ratio. The debt-to-equity ratio has improved over the years, suggesting effective debt management, and the return on equity has been positive. However, the total assets have slightly decreased, indicating potential concerns about asset growth or efficiency in asset utilization. Overall, the balance sheet shows a stable financial position with opportunities for better asset management.

Cash Flow

KOWA CO. LTD. has shown positive free cash flow growth, driven by strong operating cash flow. The free cash flow to net income ratio indicates good conversion of earnings into cash, supporting financial flexibility. Despite fluctuations in investing cash flow, the company has maintained healthy cash flow operations, evidencing prudent financial management. The operating cash flow to net income ratio is favorable, suggesting efficient cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.37B	6.37B	6.40B	6.27B	5.72B	5.25B
Gross Profit	2.82B	2.82B	2.95B	2.66B	2.68B	2.67B
EBITDA	1.16B	1.17B	1.21B	917.14M	852.50M	677.56M
Net Income	615.73M	616.20M	710.43M	438.31M	400.96M	389.40M
Balance Sheet
Total Assets	4.89B	4.89B	4.82B	5.16B	5.03B	5.08B
Cash, Cash Equivalents and Short-Term Investments	1.69B	1.69B	1.02B	1.24B	1.38B	1.83B
Total Debt	393.50M	393.50M	940.09M	1.23B	1.53B	2.77B
Total Liabilities	1.88B	1.88B	2.34B	2.68B	2.78B	3.86B
Stockholders Equity	2.92B	2.92B	2.41B	2.43B	2.20B	1.19B
Cash Flow
Free Cash Flow	0.00	642.99M	690.14M	502.38M	352.85M	553.76M
Operating Cash Flow	0.00	960.49M	742.06M	557.81M	516.65M	628.92M
Investing Cash Flow	0.00	38.48M	92.96M	-145.75M	-215.42M	-29.45M
Financing Cash Flow	0.00	-549.82M	-1.09B	-562.70M	-822.92M	-1.41B

KOWA CO. LTD. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 839.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7807, the sentiment is Positive. The current price of 839 is above the 20-day moving average (MA) of 821.10, above the 50-day MA of 799.42, and above the 200-day MA of 822.98, indicating a bullish trend. The MACD of 14.92 indicates Negative momentum. The RSI at 61.10 is Neutral, neither overbought nor oversold. The STOCH value of 75.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:7807.

KOWA CO. LTD. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7807	80 Outperform	¥4.25B	7.04	―	1.42%	0.28%	-27.08%
7898	74 Outperform	8.34B	4.07	3.98%	2.69%	0.90%	―
7887	72 Outperform	7.05B	13.18	0.41%	2.05%	7.48%	10.02%
7997	61 Neutral	1.76B	11.46	4.58%	1.93%	-9.93%	-83.97%
7822	56 Neutral	11.40B	407.20	-0.07%	3.88%	0.89%	-99.30%
6612	50 Neutral	6.91B	-19.02	1.54%	―	-16.75%	45.18%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%