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KOWA CO. LTD.
(7807)
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Rating:78Outperform
Price Target:
¥1,094.00
▲(29.01% 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 Leverage
Substantial 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 Decline
The 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage
Substantial 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.
Read all positive factors
KOWA CO. LTD. (7807) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥4.83B
Dividend Yield1.35%
Average Volume (3M)4.66K
Price to Earnings (P/E)7.7
Beta (1Y)0.08
Revenue Growth2.24%
EPS Growth17.87%
CountryJP
Employees211
SectorGeneral
Sector StrengthN/A
IndustryMedical - Specialties
Share Statistics
EPS (TTM)123.92
Shares Outstanding5,032,630
10 Day Avg. Volume8,910
30 Day Avg. Volume4,663
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 ...
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 | 6.58B | 6.39B | 6.37B | 6.40B | 6.27B | 5.72B |
| Gross Profit | 2.90B | 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 | 514.85M | 427.36M | 616.20M | 710.43M | 438.31M | 400.96M |
Balance Sheet | ||||||
| Total Assets | 5.75B | 5.08B | 4.89B | 4.82B | 5.16B | 5.03B |
| Cash, Cash Equivalents and Short-Term Investments | 2.90B | 2.00B | 1.69B | 1.02B | 1.24B | 1.38B |
| Total Debt | 188.51M | 201.32M | 393.50M | 940.09M | 1.23B | 1.53B |
| Total Liabilities | 1.82B | 1.55B | 1.88B | 2.34B | 2.68B | 2.78B |
| Stockholders Equity | 3.82B | 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
893.26
Positive
865.02
Positive
851.39
Positive
Market Momentum
20.94
Positive
60.04
Neutral
66.95
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 848 is below the 20-day moving average (MA) of 932.30, below the 50-day MA of 893.26, and below 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | ¥185.10B | 11.25 | ― | 4.87% | 3.91% | 28.69% | |
78 Outperform | ¥4.83B | 7.75 | ― | 1.35% | 2.24% | 17.87% | |
68 Neutral | ¥7.10B | 4.03 | ― | 2.82% | 27.96% | 217.85% | |
67 Neutral | ¥43.54B | 14.49 | ― | 3.25% | 3.77% | 8.09% | |
61 Neutral | ¥5.05B | 7.44 | ― | 2.75% | 0.28% | 2.74% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
51 Neutral | ¥8.36B | -4.32 | ― | 2.68% | 2.16% | -194.33% |
* General Sector Average
JP:7807
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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.