Howa Machinery, Ltd.

6203.T · Industrials · Specialty Industrial Machinery · Valued as of 2026-11-03 · Statements 2026-03-31

How Each Value Is Built

The screener's three formulas on the reported figures. Each card reads the same way: the value as a sum of numbered terms, each term's calculation opened under it, from the reported figures to the value. The list ranks companies by their plain average over the market cap.

What it is worth

EPV + Growth

61.49M USD

what the normal year's earnings are worth for ever, plus growth that pays

Profit

84.95M USD

15 years of cash the shareholders can take out, and the equity left at year 15

FCFF

131.66M USD

15 years of cash for shareholders and lenders, less what is owed

Average Intrinsic Value

92.70M USD

The plain average of EPV, Profit and FCFF

Against the price

Market Cap

197.74M USD

the price on the date above times the shares

Intrinsic Value ÷ Market Cap

0.47×

the ratio the screener ranks by

Margin of Safety

-113.3%

1 − Market Cap / Average Intrinsic Value

Projections, not exact values. Intrinsic Values are projected from each company's past reports. They show which stocks look cheap compared with the others, not exactly what a stock is worth.

Earnings power value plus growth: 61.49M USD
What the normal year's operating profit after tax is worth if it lasts for ever, plus what the new investment adds beyond its cost, less the net debt that comes before the shareholders (or plus the net cash).
①EPV (earnings power value)58.80M USD
+②Net Cash Today2.69M USD
+③Growth Value0 USD
=Value61.49M USD

EPV of the Operations (NOPAT over WACC)

58.80M USD

Net cash today

+2.69M USD

Growth Value

0 USD

Value

61.49M USD

①EPV (earnings power value)

58.80M USD

②Net Cash Today

2.69M USD

③Growth Value

0 USD

Market value

Market Cap197.74M USD

The price on the date above times the shares.

Value vs market

Margin of Safety-221.6%

1 minus the market cap as a share of the value.

Profit value: today's value of the shareholders' equity, from the cash it can pay them (FCFE): 84.95M USD
Fifteen years of free cash flow to equity (FCFE), each brought to today at the cost of equity, plus the equity at year 15 brought to today.
①Present Value of the 15 Years of FCFE28.64M USD
+②Equity at Year 15, Today56.31M USD
=Value84.95M USD
FCFE: the net income left for the shareholders once the business keeps what next year's growth needsEquity reinvestment: the part of the year's net income kept in the business to grow the next year; below zero, capital the business releases to the shareholdersPresent value of the FCFEColoured bars show the FCFE, grey bars the equity reinvestment. With a positive equity reinvestment the two stacked are the year's normalized income; with a negative one the grey is below zero, capital the business releases, and the normalized income is the FCFE plus that negative amount. Shaded, years 6 to 10: the growth rising to its long-run rate and the ROE on new investment rising to the cost of equity. Axes linear.

①Present Value of the 15 Years of FCFE

28.64M USD

②Equity at Year 15, Today

56.31M USD

Market value

Market Cap197.74M USD

The price on the date above times the shares.

Value vs market

Margin of Safety-132.8%

1 minus the market cap as a share of the value.

FCFF value: today's value of the shareholders' equity, from the cash the firm can pay its shareholders and lenders (FCFF): 131.66M USD
Fifteen years of free cash flow to the firm (FCFF), each brought to today at the WACC, plus the invested capital at year 15 brought to today, less the net debt today (or plus the net cash).

The projection was not made (a change in working capital above half the operating profit in the latest three years), so the value is the book value today, 131.66M USD, as the screener leaves it.

①Present Value of the 15 Years of FCFF

Not in the value

②Invested Capital at Year 15, Today

Not in the value

③Net Cash Today

Not in the value

Market value

Market Cap197.74M USD

The price on the date above times the shares.

Value vs market

Margin of Safety-50.2%

1 minus the market cap as a share of the value.

The Rates and the Capital the Values Read

The WACC and the cost of equity each value is discounted at, the book value and the net debt each starts from, and the seven quality metrics, from the same run.

WACC: 6.12%
Cost of Equity =Risk-Free Rate 4.50%+Beta 0.47×Market Risk Premium 6.00%= 7.33%

The yearly return the shareholders require for the risk they carry; it is the rate that brings their future cash to today.

Tax Rate for WACC =Tax Provision 3.74M USDPretax Income 8.38M USD= 44.62%

The tax the interest saves.

Interest Expense =EBIT 8.72M USD−Pretax Income 8.38M USD= 344.44K USD

The interest the company paid: EBIT is the profit before tax plus the interest.

Cost of Debt =Interest Expense 344.44K USDTotal Debt 42.35M USD×(1 − Tax Rate for WACC 44.62%)= 0.45%

What the lenders are paid a year after the tax the interest saves.

Debt Weight =Total Debt 42.35M USDMarket Cap + Total Debt 197.74M USD + 42.35M USD= 17.64%

The part of the capital the lenders put in, at market value.

WACC =Equity Weight 82.36%×Cost of Equity 7.33%+Debt Weight 17.64%×Cost of Debt 0.45%= 6.12%

Weighted average cost of capital: the yearly return the shareholders and the lenders together require, weighted by what each puts in; the rate that brings the firm's future cash to today.

Book value and net debt today
Both from the balance sheet of the newest quarter, 2026-03-31.

Total Assets 224.36M USD − Total Liabilities 92.70M USD = Book Value Today 131.66M USD

Total Debt 42.35M USD − Cash and Short-Term Investments 45.04M USD = Net Debt Today -2.69M USD

The book value is what Profit starts from and what stands when a projection is not made; the book value plus the net debt is what FCFF starts from; the net debt comes off Greenwald's and FCFF's values before the shareholders.

Quality metrics
Read beside the value, never a condition for it: every company is valued, and a filter in the list is the reader's choice.
MetricFrom
Share dilutionShares Today ÷ Shares Two Years Back − 10.2%at most 5%passes12,071,245 / 12,047,456
Accrual quality(Operating Cash Flow − Net Income) ÷ Total Assets11.4%at least -10.0%passes(30.13M USD − 4.64M USD) ÷ 224.36M USD
Price to bookMarket Cap ÷ Book Value Today1.50×at most 3×passes197.74M USD ÷ 131.66M USD
Operating marginOperating Income ÷ Revenue4.9%above 10.0%does not pass7.43M USD ÷ 150.70M USD
Revenue growthRevenue ÷ Revenue a Year Before − 1-9.3%above 10.0%does not pass150.70M USD / 166.10M USD
Net cash(Cash − Total Debt) ÷ Market Cap-1.8%above -30%passes(38.75M USD − 42.35M USD) ÷ 197.74M USD
Operating efficiencyOperating Income ÷ Gross Profit28.1%above 25.0%passes7.43M USD ÷ 26.48M USD

Market Data

The provider's ratios and the analysts' consensus beside the argument; none of them enters a value.

Share price

2518.52 JPY

Enterprise value

30.13B JPY

the provider's own figure

EV / EBITDA

16.67×

Price / book

1.36×

the provider's book

Price / earnings

40.96×

Return on equity

3.8%

the provider's figure, not this page's

Profit margin

3.3%

Revenue growth

-10.0%

Analyst target, mean

—

Analysts

—

opinions in the consensus

Financial Statements

The annual lines the screener holds, year by year, in USD at each period's rate; the figures this valuation read are in its calculation above.

USD2023202420252026
Income statement

Revenue

148.33M130.78M166.10M150.70M

Gross profit

27.26M23.06M28.12M26.48M

Operating income

3.40M2.56M8.38M7.43M

EBITDA

operating income before depreciation and amortisation

8.60M-1.69M11.53M12.44M

Pretax income

4.71M-5.74M8.07M8.38M

Net income

3.94M-5.77M5.01M4.64M

Normalized income

net income without one-off items, as the data provider prints it; Profit's line when printed

3.89M1.01M5.87M4.79M

R&D

————
Balance sheet, year end

Total assets

207.59M200.21M227.82M224.36M

Total liabilities

77.18M85.64M102.46M92.70M

Shareholders' equity

the equity the parent's shareholders own, as printed, without minority interest; the book value the values read is total assets less total liabilities, in Book Value and Net Debt above

130.41M114.56M125.35M131.66M

Total debt

26.44M41.26M53.31M42.35M

Cash and equivalents

25.02M25.76M19.52M38.75M

Net PP&E

fixed assets after depreciation

29.35M21.11M33.57M30.14M

Working capital

current assets less current liabilities

91.72M94.52M88.23M86.37M
Cash flow

Operating cash flow

-3.80M-7.08M367.97K30.13M

Capital expenditure

paid out, so below zero

-4.77M-7.69M-16.08M-1.83M

Depreciation and amortisation

3.80M3.94M3.22M3.71M

Free cash flow

operating cash flow plus capital expenditure

-8.57M-14.77M-15.71M28.30M