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KOWA CO. LTD.
(7807)
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Rating:78Outperform
Price Target:
¥975.00
▲(14.98% Upside)
Action:Reiterated
Date:08/04/26
The score is led by strong financial foundations—especially a significantly improved, low-leverage balance sheet and consistently positive free cash flow—tempered by the sharp 2026 revenue and earnings decline. Technicals are moderately supportive with price above key moving averages and neutral momentum readings. Valuation is a key positive given the low P/E and modest dividend yield.
Positive Factors
Improved balance sheet and low leverage
Debt reduction from ~2.34x to low levels and growing equity materially improves financial flexibility. This durable strength lowers refinancing and solvency risk, enables funding of capex/dividend commitments, and provides a multi-quarter buffer to absorb cyclical shocks or invest in strategic initiatives.
Negative Factors
Sharp 2026 revenue decline
A ~19% revenue drop in 2026 and materially lower net income signal weakening end-market demand or lost sales momentum. If this deterioration persists, it can erode scale benefits, reduce fixed-cost absorption and constrain reinvestment or shareholder return plans over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved balance sheet and low leverage
Debt reduction from ~2.34x to low levels and growing equity materially improves financial flexibility. This durable strength lowers refinancing and solvency risk, enables funding of capex/dividend commitments, and provides a multi-quarter buffer to absorb cyclical shocks or invest in strategic initiatives.
Read all positive factors
KOWA CO. LTD. (7807) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.43B
Dividend Yield1.47%
Average Volume (3M)3.79K
Price to Earnings (P/E)7.3
Beta (1Y)0.13
Revenue Growth0.38%
EPS Growth1.19%
CountryJP
Employees211
SectorGeneral
Sector StrengthN/A
IndustryMedical - Specialties
Share Statistics
EPS (TTM)121.53
Shares Outstanding5,032,630
10 Day Avg. Volume3,040
30 Day Avg. Volume3,786
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)1.04
Price to Sales (P/S)0.56
P/FCF Ratio5.91
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
KOWA CO. LTD. Business Overview & Revenue Model
Company Description
Kowa Co.,Ltd., together with its subsidiaries, manufactures and sells nursing care products and welfare equipment under the Tacaof, AURULA, and GENTIL MARRONE brands in Japan. It operates through Nursing Care and Equipment Manufacturing and Sales ...
How the Company Makes Money
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KOWA CO. LTD. Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.43B | 6.39B | 6.37B | 6.40B | 6.27B | 5.72B |
| Gross Profit | 2.87B | 2.83B | 2.82B | 2.95B | 2.66B | 2.75B |
| EBITDA | 1.07B | 978.10M | 1.02B | 1.16B | 874.49M | 838.64M |
| Net Income | 504.68M | 427.36M | 616.20M | 710.43M | 438.31M | 400.96M |
Balance Sheet | ||||||
| Total Assets | 5.47B | 5.08B | 4.89B | 4.82B | 5.16B | 5.03B |
| Cash, Cash Equivalents and Short-Term Investments | 2.34B | 2.00B | 1.69B | 1.02B | 1.24B | 1.38B |
| Total Debt | 195.27M | 201.32M | 393.50M | 940.09M | 1.23B | 1.53B |
| Total Liabilities | 1.74B | 1.55B | 1.88B | 2.34B | 2.68B | 2.78B |
| Stockholders Equity | 3.63B | 3.42B | 2.92B | 2.41B | 2.43B | 2.20B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 600.17M | 642.99M | 694.39M | 522.05M | 388.05M |
| Operating Cash Flow | 0.00 | 683.44M | 960.49M | 742.06M | 557.81M | 516.65M |
| Investing Cash Flow | 0.00 | -442.69M | 38.48M | 92.96M | -145.75M | -215.42M |
| Financing Cash Flow | 0.00 | -467.21M | -549.82M | -1.09B | -562.70M | -822.92M |
KOWA CO. LTD. Technical Analysis
Positive
848.00
Price Trends
846.18
Positive
837.34
Positive
833.01
Positive
Market Momentum
8.19
Negative
59.80
Neutral
85.59
Negative
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 848 is below the 20-day moving average (MA) of 866.80, above the 50-day MA of 846.18, and above the 200-day MA of 833.01, indicating a bullish trend. The MACD of 8.19 indicates Negative momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 85.59 is Negative, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥186.26B | 11.32 | ― | 4.91% | 3.91% | 28.69% | |
78 Outperform | ¥4.43B | 7.29 | ― | 1.44% | 0.38% | 1.19% | |
67 Neutral | ¥44.86B | 14.95 | ― | 3.16% | 3.77% | 8.09% | |
65 Neutral | ¥7.72B | 4.35 | ― | 1.66% | 27.96% | 217.85% | |
61 Neutral | ¥5.15B | 7.50 | ― | 1.76% | 0.28% | 2.74% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | ¥8.74B | -4.57 | ― | 2.65% | 2.16% | -194.33% |
* General Sector Average
JP:7807
KOWA CO. LTD.
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92.79
11.70%
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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.