TipRanks
Go Ultimate55% OFF

KOWA CO. LTD. (7807) AI Stock Analysis

JP:7807

KOWA CO. LTD.

(TSE/TYO:7807)

Select Model
Rating:78Outperform
Price Target:JPY 1,094.00â–²(13.96% 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
Low LeverageSubstantial debt reduction and growing equity have improved KOWA’s financial flexibility. Low leverage should reduce balance-sheet strain, preserve borrowing capacity, and give the company more resilience to manage weaker demand or fund investment over the next several quarters.
Negative Factors
Sharp Revenue DeclineThe sharp 2026 revenue contraction signals a meaningful weakening in demand after the stronger 2023–2024 period. If this decline persists, lower scale and reduced operating leverage could pressure earnings, limit reinvestment capacity, and weaken the company’s growth trajectory.

KOWA CO. LTD. (7807) vs. iShares MSCI Japan ETF (EWJ)

-5%0%5%10%15%20%25%JP:7807+17.81%EWJ+15.87%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
JPY 3.99B
Dividend Yield
1.35%
Average Volume (3M)
3,348
Price to Earnings (P/E)
7.7
Beta (1Y)
0.08
Revenue Growth
2.24%
EPS Growth
17.87%
Country
Japan
Employees
211
Sector
General
Sector Strength
55
Industry
Medical - Specialties

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 Bus...

KOWA CO. LTD. Financial Statement Overview

Summary

Overall financial quality is good, supported by a much stronger balance sheet (material debt reduction and higher equity) and consistently positive free cash flow. The main offset is the latest-year slowdown: 2026 revenue fell sharply (~-19% YoY) with a material net income decline, signaling weakening demand and/or margin pressure.

Income Statement

64Positive

Balance Sheet

86Very Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue6.58B6.39B6.37B6.40B6.27B5.72B
Gross Profit2.90B2.83B2.82B2.95B2.66B2.75B
EBITDA1.07B978.10M1.02B1.16B874.49M838.64M
Net Income514.85M427.36M616.20M710.43M438.31M400.96M
Balance Sheet
Total Assets5.75B5.08B4.89B4.82B5.16B5.03B
Cash, Cash Equivalents and Short-Term Investments2.90B2.00B1.69B1.02B1.24B1.38B
Total Debt188.51M201.32M393.50M940.09M1.23B1.53B
Total Liabilities1.82B1.55B1.88B2.34B2.68B2.78B
Stockholders Equity3.82B3.42B2.92B2.41B2.43B2.20B
Cash Flow
Free Cash Flow0600.17M642.99M694.39M522.05M388.05M
Operating Cash Flow0683.44M960.49M742.06M557.81M516.65M
Investing Cash Flow0-442.69M38.48M92.96M-145.75M-215.42M
Financing Cash Flow0-467.21M-549.82M-1.09B-562.70M-822.92M

KOWA CO. LTD. Technical Analysis

Technical Analysis SentimentPositive
Last Price960.00

Price Trends

50DMA893.26Positive
100DMA865.02Positive
200DMA851.39Positive

Market Momentum

MACD20.94Positive
RSI60.04Neutral
STOCH66.95Neutral

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 960.00 is above the 20-day moving average (MA) of 932.30, above the 50-day MA of 893.26, and above the 200-day MA of 851.39, indicating a bullish trend. The MACD of 20.94 indicates Positive momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 66.95 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

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

JP:7807 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
JP:8130JP:813082OutperformJPY 185.10B11.25―4.87%3.91%28.69%
JP:7807JP:780778OutperformJPY 4.83B7.75―1.35%2.24%17.87%
JP:7840JP:784067NeutralJPY 43.54B14.49―3.25%3.77%8.09%
JP:7887JP:788765NeutralJPY 7.10B4.03―2.82%27.96%217.85%
JP:5956JP:595661NeutralJPY 5.05B7.44―2.75%0.28%2.74%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7898JP:789851NeutralJPY 8.36B-4.32―2.68%2.16%-194.33%

* General Sector Average

Performance Comparison

0%20%40%60%JP:7807JP:5956JP:7840JP:7887JP:7898JP:8130Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
JP:7807 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7807KOWA CO. LTD.960.00158.9219.84%
JP:5956Toso Company, Limited564.0022.744.20%
JP:7840France Bed Holdings Co., Ltd.1260.00-18.44-1.44%
JP:7887Nankai Plywood Co., Ltd.1418.00-42.85-2.93%
JP:7898Wood One Co., Ltd.895.0057.156.82%
JP:8130Sangetsu Corporation3180.00309.9510.80%
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.

Date of analysis: Aug 04, 2026