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KOWA CO. LTD. (7807) AI Stock Analysis

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JP:7807

KOWA CO. LTD.

(TSE/TYO:7807)

Select Model
Rating:84Outperform
Price Target:JPY 1,134.00â–²(24.07% Upside)
Action:reiterated
Date:11/05/26

KOWA CO. LTD. earns a strong overall score driven primarily by its deeply discounted valuation and a fortress balance sheet with minimal debt. Furthermore, the stock benefits from steady, bullish technical momentum across all major moving averages. The primary headwind keeping the score from the highest tier is the recent stagnation in revenue and earnings margin compression, which warrants monitoring in upcoming quarters.

Positive Factors
Balance Sheet StrengthSubstantial deleveraging and a larger equity base have materially improved financial flexibility. Low leverage should reduce balance-sheet pressure, preserve capacity to fund operations or investment, and help the company withstand periods of weaker profitability over the next several quarters.
Negative Factors
Sharp Revenue DeclineThe latest-year revenue contraction is a material setback for a manufacturer whose earnings depend on continued product demand and sales volume. If the decline persists, lower operating leverage could pressure profitability, reduce reinvestment capacity, and delay a return to prior earnings levels.

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

-5%0%5%10%15%20%25%30%JP:7807+10.83%EWJ+16.06%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
JPY 3.80B
Dividend Yield
1.42%
Average Volume (3M)
3,675
Price to Earnings (P/E)
7.4
Beta (1Y)
0.17
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

KOWA CO. LTD. demonstrates a highly stable financial profile anchored by an exceptional balance sheet and robust free cash flow conversion, which has allowed for massive debt reduction. However, the score is partially offset by a moderate income statement reflecting recent top-line stagnation and net profit margin compression.

Income Statement

65Positive

Balance Sheet

95Very Positive

Cash Flow

85Very Positive
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 SentimentNeutral
Last Price914.00

Price Trends

50DMA902.62Positive
100DMA875.11Positive
200DMA855.10Positive

Market Momentum

MACD1.46Positive
RSI47.25Neutral
STOCH37.36Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:7807, the sentiment is Neutral. The current price of 914.00 is below the 20-day moving average (MA) of 942.65, above the 50-day MA of 902.62, and above the 200-day MA of 855.10, indicating a neutral trend. The MACD of 1.46 indicates Positive momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 37.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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:7807JP:780784OutperformJPY 4.60B7.38―1.42%2.24%17.87%
JP:8130JP:813082OutperformJPY 184.23B11.41―4.81%3.50%19.85%
JP:7887JP:788768NeutralJPY 6.53B5.22―3.07%40.27%-18.17%
JP:7840JP:784067NeutralJPY 45.34B13.24―3.12%4.44%26.86%
JP:5956JP:595661NeutralJPY 4.98B7.75―2.75%-0.52%-9.79%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
JP:7898JP:789851NeutralJPY 7.85B-3.08―2.80%4.00%-208.45%

* 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 '26Nov '26
JP:7807 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
JP:7807KOWA CO. LTD.914.0086.3510.43%
JP:5956Toso Company, Limited564.0040.307.70%
JP:7840France Bed Holdings Co., Ltd.1312.0031.622.47%
JP:7887Nankai Plywood Co., Ltd.1305.00-161.74-11.03%
JP:7898Wood One Co., Ltd.856.00-11.11-1.28%
JP:8130Sangetsu Corporation3225.00312.1210.72%
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: Nov 05, 2026