Towa Pharmaceutical Co., Ltd.'s shares display attractive technical aspects to anticipate a comeback of the underlying trend.
Summary
● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
Strengths
● Its low valuation, with P/E ratio at 9.64 and 9.38 for the ongoing fiscal year and 2023 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company appears to be poorly valued given its net asset value.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
● The group usually releases upbeat results with huge surprise rates.
Weaknesses
● The potential for earnings per share (EPS) growth in the coming years appears limited according to current analyst estimates.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.
● The price targets of analysts who cover the stock differ significantly. This implies difficulties in evaluating the company and its business.
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Towa Pharmaceutical Co Ltd is a Japan-based company mainly engaged in the manufacture and sale of pharmaceuticals. The main products are generic drugs, which are launched after the efficacy and safety of new drugs have been confirmed for a certain period of time. It is a drug with the same effect, usage and dosage. The Company is involved in the sale and outsourced manufacture of products and generic drugs. The Company is involved in the research and outsourced manufacture of active pharmaceutical ingredient and soft capsules. The Company is also involved in the planning, development, contract manufacturing of health foods, general foods, miscellaneous goods and others.