DB:TWA

Stock Analysis Report

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Executive Summary

TOWA Corporation designs, develops, manufactures, and sells semiconductor manufacturing equipment and high-precision molds in Japan and internationally. More Details

Rewards

Trading at 3% below our estimate of its fair value

Earnings are forecast to grow 33.22% per year

Became profitable this year

Risk Analysis

No risks detected for TWA from our risk checks.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has TOWA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TWA is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: TWA's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

1.5%

TWA

6.7%

DE Semiconductor

0.7%

DE Market


1 Year Return

45.0%

TWA

37.5%

DE Semiconductor

0.6%

DE Market

Return vs Industry: TWA exceeded the German Semiconductor industry which returned 37.5% over the past year.

Return vs Market: TWA exceeded the German Market which returned 0.6% over the past year.


Shareholder returns

TWAIndustryMarket
7 Day1.5%6.7%0.7%
30 Day40.5%10.5%7.8%
90 Day68.1%21.2%1.7%
1 Year48.3%45.0%39.1%37.5%3.9%0.6%
3 Year-12.7%-17.6%24.0%19.1%4.0%-5.0%
5 Year127.9%110.4%103.3%91.9%21.4%4.2%

Long-Term Price Volatility Vs. Market

How volatile is TOWA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is TOWA undervalued compared to its fair value and its price relative to the market?

3.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TWA (€13.7) is trading below our estimate of fair value (€14.13)

Significantly Below Fair Value: TWA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TWA is good value based on its PE Ratio (29.8x) compared to the DE Semiconductor industry average (59.6x).

PE vs Market: TWA is poor value based on its PE Ratio (29.8x) compared to the German market (23.2x).


Price to Earnings Growth Ratio

PEG Ratio: TWA is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: TWA is good value based on its PB Ratio (1.6x) compared to the DE Semiconductor industry average (2.7x).


Next Steps

Future Growth

How is TOWA forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

33.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TWA's forecast earnings growth (33.2% per year) is above the savings rate (0.2%).

Earnings vs Market: TWA's earnings (33.2% per year) are forecast to grow faster than the German market (27.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: TWA's revenue (13.8% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: TWA's revenue (13.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TWA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has TOWA performed over the past 5 years?

-23.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TWA has high quality earnings.

Growing Profit Margin: TWA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TWA's earnings have declined by 23.5% per year over the past 5 years.

Accelerating Growth: TWA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TWA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (-58.1%).


Return on Equity

High ROE: TWA's Return on Equity (5.1%) is considered low.


Next Steps

Financial Health

How is TOWA's financial position?


Financial Position Analysis

Short Term Liabilities: TWA's short term assets (¥25.7B) exceed its short term liabilities (¥10.3B).

Long Term Liabilities: TWA's short term assets (¥25.7B) exceed its long term liabilities (¥6.3B).


Debt to Equity History and Analysis

Debt Level: TWA's debt to equity ratio (34.1%) is considered satisfactory.

Reducing Debt: TWA's debt to equity ratio has increased from 20.1% to 34.1% over the past 5 years.

Debt Coverage: TWA's debt is well covered by operating cash flow (61.6%).

Interest Coverage: TWA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is TOWA current dividend yield, its reliability and sustainability?

0.92%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: TWA's dividend (0.92%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.13%).

High Dividend: TWA's dividend (0.92%) is low compared to the top 25% of dividend payers in the German market (3.64%).


Stability and Growth of Payments

Stable Dividend: TWA's dividend payments have been volatile in the past 10 years.

Growing Dividend: TWA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.4%), TWA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Hirokazu Okada

no data

Tenure

Mr. Hirokazu Okada serves as the Chief Executive Officer, President and Executive Director at TOWA Corporation and served as its Chief Operating Officer. Mr. Okada served as Chief Operating Officer of Deve...


Leadership Team

NamePositionTenureCompensationOwnership
Hirokazu Okada
Presidentno datano data0.72%
¥ 2.5m
Yoshizumi Tamura
Managing Executive Officerno datano data0.073%
¥ 255.5k
Koichi Ishida
Senior Exec. Officer3.42yrsno data0.048%
¥ 169.0k
Hiroshi Uragami
Managing Executive Officerno datano data0.11%
¥ 386.8k
Kiyoshige Gamo
Executive Officerno datano datano data
Noboru Hayasaka
Senior Executive Officer & Development Division Manager1.83yrsno datano data
Fangshun Niu
Executive Officer2.83yrsno datano data
Sangyoun Han
Executive Officer2.83yrsno datano data
Nobutaka Shibahara
Executive Officer & Corporate Planning Division Manager1.83yrsno datano data
Kazuhiko Nakanishi
Executive Officer0.83yrno datano data

2.8yrs

Average Tenure

Experienced Management: TWA's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hirokazu Okada
Presidentno datano data0.72%
¥ 2.5m
Yoshizumi Tamura
Managing Executive Officerno datano data0.073%
¥ 255.5k
Koichi Ishida
Senior Exec. Officer3.42yrsno data0.048%
¥ 169.0k
Hiroshi Uragami
Managing Executive Officerno datano data0.11%
¥ 386.8k
Hajime Kuwaki
Independent External Directorno datano data0.040%
¥ 139.7k
Hisayoshi Kobayashi
Director4.42yrsno data0.072%
¥ 251.4k
Daisuke Wake
Independent External Director4.42yrsno data0.023%
¥ 79.6k
Miho Goto
Independent External Director0.83yrno datano data

3.9yrs

Average Tenure

Experienced Board: TWA's board of directors are considered experienced (3.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TOWA Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TOWA Corporation
  • Ticker: TWA
  • Exchange: DB
  • Founded: 1979
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: JP¥43.416b
  • Listing Market Cap: JP¥349.246m
  • Shares outstanding: 25.01m
  • Website: https://www.towajapan.co.jp

Number of Employees


Location

  • TOWA Corporation
  • 5 Kamichoshi-cho
  • Kamitoba
  • Kyoto
  • 601-8105
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TWADB (Deutsche Boerse AG)YesCommon StockDEEURSep 1996
6315TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYSep 1996

Biography

TOWA Corporation designs, develops, manufactures, and sells semiconductor manufacturing equipment and high-precision molds in Japan and internationally. Its products include molding equipment, singulation ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 18:37
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.