Towa Pharmaceutical Co., Ltd.
Towa Pharmaceutical Co., Ltd. Fundamental Analysis
Towa Pharmaceutical Co., Ltd. (TWAPF) shows moderate financial fundamentals with a PE ratio of 25.06, profit margin of 1.91%, and ROE of 2.92%. The company generates $275.1B in annual revenue with strong year-over-year growth of 13.89%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TWAPF's fundamental strength across five key dimensions:
Efficiency Score
WeakTWAPF struggles to generate sufficient returns from assets.
Valuation Score
ModerateTWAPF shows balanced valuation metrics.
Growth Score
ExcellentTWAPF delivers strong and consistent growth momentum.
Financial Health Score
ModerateTWAPF shows balanced financial health with some risks.
Profitability Score
ModerateTWAPF maintains healthy but balanced margins.
Key Financial Metrics
Is TWAPF Expensive or Cheap?
P/E Ratio
TWAPF trades at 25.06 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TWAPF's PEG of -0.00 indicates potential undervaluation.
Price to Book
The market values Towa Pharmaceutical Co., Ltd. at 0.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.02 times EBITDA. This is generally considered low.
How Well Does TWAPF Make Money?
Net Profit Margin
For every $100 in sales, Towa Pharmaceutical Co., Ltd. keeps $1.91 as profit after all expenses.
Operating Margin
Core operations generate 8.43 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.92 in profit for every $100 of shareholder equity.
ROA
Towa Pharmaceutical Co., Ltd. generates $1.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Towa Pharmaceutical Co., Ltd. produces operating cash flow of $30.65B, showing steady but balanced cash generation.
Free Cash Flow
Towa Pharmaceutical Co., Ltd. generates weak or negative free cash flow of $8.22B, restricting financial flexibility.
FCF Per Share
Each share generates $167.06 in free cash annually.
FCF Yield
TWAPF converts 6.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How TWAPF Stacks Against Its Sector Peers
| Metric | TWAPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.06 | 29.35 | Better (Cheaper) |
| ROE | 2.92% | 705.00% | Weak |
| Net Margin | 1.91% | -53441.00% (disorted) | Weak |
| Debt/Equity | 1.27 | 0.39 | Weak (High Leverage) |
| Current Ratio | 2.76 | 4.01 | Strong Liquidity |
| ROA | 1.10% | -19815.00% (disorted) | Weak |
TWAPF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Towa Pharmaceutical Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
135.10%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
30.87%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
22.07%
Industry Style: Defensive, Growth, Innovation
High Growth