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KOWA CO. LTD. (JP:7807)
:7807
Japanese Market
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KOWA CO. LTD. (7807) AI Stock Analysis

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JP:7807

KOWA CO. LTD.

(7807)

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Outperform 78 (OpenAI - 5.2)
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)

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
null...

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
64
Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
BreakdownTTMFeb 2026Feb 2025Feb 2024Feb 2023Feb 2022
Income Statement
Total Revenue6.43B6.39B6.37B6.40B6.27B5.72B
Gross Profit2.87B2.83B2.82B2.95B2.66B2.75B
EBITDA1.07B978.10M1.02B1.16B874.49M838.64M
Net Income504.68M427.36M616.20M710.43M438.31M400.96M
Balance Sheet
Total Assets5.47B5.08B4.89B4.82B5.16B5.03B
Cash, Cash Equivalents and Short-Term Investments2.34B2.00B1.69B1.02B1.24B1.38B
Total Debt195.27M201.32M393.50M940.09M1.23B1.53B
Total Liabilities1.74B1.55B1.88B2.34B2.68B2.78B
Stockholders Equity3.63B3.42B2.92B2.41B2.43B2.20B
Cash Flow
Free Cash Flow0.00600.17M642.99M694.39M522.05M388.05M
Operating Cash Flow0.00683.44M960.49M742.06M557.81M516.65M
Investing Cash Flow0.00-442.69M38.48M92.96M-145.75M-215.42M
Financing Cash Flow0.00-467.21M-549.82M-1.09B-562.70M-822.92M

KOWA CO. LTD. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price848.00
Price Trends
50DMA
846.18
Positive
100DMA
837.34
Positive
200DMA
833.01
Positive
Market Momentum
MACD
8.19
Negative
RSI
59.80
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥186.26B11.324.91%3.91%28.69%
78
Outperform
¥4.43B7.291.44%0.38%1.19%
67
Neutral
¥44.86B14.953.16%3.77%8.09%
65
Neutral
¥7.72B4.351.66%27.96%217.85%
61
Neutral
¥5.15B7.501.76%0.28%2.74%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
48
Neutral
¥8.74B-4.572.65%2.16%-194.33%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:7807
KOWA CO. LTD.
886.00
92.79
11.70%
JP:5956
Toso Company, Limited
569.00
26.15
4.82%
JP:7840
France Bed Holdings Co., Ltd.
1,300.00
70.88
5.77%
JP:7887
Nankai Plywood Co., Ltd.
1,532.00
151.66
10.99%
JP:7898
Wood One Co., Ltd.
946.00
80.32
9.28%
JP:8130
Sangetsu Corporation
3,210.00
278.88
9.51%
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