Kowa Co (TSE:7807) EBIT: 円657 Mil (TTM As of Feb. 2026)


TSE:7807 Kowa Co Ltd TSE:7807
78 GF Score
Price 円816.00
GF Value 円1,080.70
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Kowa Co EBIT?

Kowa Co TSE:7807 78 EBIT is 円657 Mil as of Feb. 2026. GuruFocus rates TSE:7807 with a GF Score™ of 78/100 and a GF Value™ of 円1,080.70 (Modestly Undervalued). The stock has 2 warning signs investors should review.

Kowa Co's earnings before interest and taxes (EBIT) for the six months ended in Feb. 2026 was 円298 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Feb. 2026 was 円657 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Kowa Co's annualized ROC % for the quarter that ended in Feb. 2026 was 25.59%. Kowa Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 34.33%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Kowa Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Feb. 2026 was 38.80%.


Kowa Co  (TSE:7807) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Kowa Co's annualized ROC % for the quarter that ended in Feb. 2026 is calculated as:

ROC % (Q: Feb. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2025 ) + Invested Capital (Q: Feb. 2026 ))/ count )
=740.458 * ( 1 - 32.96% )/( (1949.672 + 1929.717)/ 2 )
=496.4030432/1939.6945
=25.59 %

where

Invested Capital(Q: Aug. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4809.961 - 1216.13 - ( 1644.159 - max(0, 1421.518 - 3791.489+1644.159))
=1949.672

Invested Capital(Q: Feb. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5077.926 - 1145.914 - ( 2002.295 - max(0, 1307.552 - 4074.63+2002.295))
=1929.717

Note: The Operating Income data used here is two times the semi-annual (Feb. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Kowa Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Feb. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Feb. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Aug. 2025  Q: Feb. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=595.318/( ( (916.084 + max(830.799, 0)) + (908.506 + max(813.149, 0)) )/ 2 )
=595.318/( ( 1746.883 + 1721.655 )/ 2 )
=595.318/1734.269
=34.33 %

where Working Capital is:

Working Capital(Q: Aug. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(942.062 + 1133.729 + 71.539) - (1216.13 + 0 + 100.401)
=830.799

Working Capital(Q: Feb. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(868.743 + 1144.832 + 58.76) - (1145.914 + 0 + 113.272)
=813.149

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Feb. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Kowa Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Feb. 2026 )
=656.677/1692.396
=38.80 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Kowa Co EBIT Related Terms


Kowa Co EBIT Historical Data

* Premium members only.

The historical data trend for Kowa Co's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Kowa Co EBIT Chart

Kowa Co Annual Data
Trend Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24 Feb25 Feb26
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 604.31 691.75 995.20 945.42 656.68

Kowa Co Semi-Annual Data
Feb16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 421.74 586.73 358.69 359.02 297.66

TSE:7807 vs SN, SGI, MHK: EBIT Comparison

For the Furnishings, Fixtures & Appliances subindustry, Kowa Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kowa Co EV-to-EBIT vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Kowa Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Kowa Co's EV-to-EBIT falls into.


TSE:7807
78GF Score
Kowa Co Ltd TSE:7807
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kowa Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Feb. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was 円657 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of 円657 Mil mean?
Kowa Co (TSE:7807) has a EBIT of 円657 Mil as of Feb. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Kowa Co.
Is Kowa Co's EBIT too high?
Kowa Co's current EBIT is 円657 Mil. Overall, Kowa Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kowa Co's EBIT compare to SN and SGI?
Kowa Co's EBIT of 円657 Mil can be compared against companies in the Furnishings, Fixtures & Appliances industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Furnishings, Fixtures & Appliances company?
A good EBIT depends on the Furnishings, Fixtures & Appliances industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Kowa Co. Kowa Co's current EBIT is 円657 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kowa Co stock overvalued right now?
Based on GuruFocus' analysis, Kowa Co (TSE:7807) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,080.70, compared to a current price of 円816.00 — trading 24.5% below its estimated fair value. The current EBIT is 円657 Mil. Kowa Co's overall GF Score™ is 78/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Kowa Co (TSE:7807), the current EBIT is 円657 Mil as of Feb. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Kowa Co (TSE:7807) Overvalued in 2026?

Based on GuruFocus' analysis, Kowa Co stock appears to be undervalued. The current stock price of 円816.00 is trading 24.5% below its estimated GF Value™ of 円1,080.70. GuruFocus considers Kowa Co to be Modestly Undervalued.

Key valuation signals for TSE:7807:

  • EBIT: 円657 Mil
  • GF Value™: 円1,080.70 vs. price of 円816.00 (24.5% below fair value)
  • GF Score™: 78/100 with 2 warning signs

No single metric tells the full story. See the TSE:7807 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kowa Co Business Description

Address 3-159-1, Kaisan-cho, Sakai-ku, Sakai-shi, Osaka, JPN, 590-0982
Kowa Co Ltd is a Japan-based company engaged in manufacture and sale of welfare equipment. The company is involved in the production and sales of welfare nursing care products including walking cars and walking aids or walk assistance carts, silver cars, handrails, walking canes, bath related products, toilet-related products and life-support products. It supplies its products mainly to chain stores, wholesale trading companies for welfare equipment, national welfare equipment lease companies, department stores, mail-order companies and others.
78GF Score

Get the complete analysis for TSE:7807

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

円816.00
Price
円1,080.70
GF Value