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TOWA Pharmaceutical Co has the Financial Strength Rank of 5.
Warning Sign:
TOWA Pharmaceutical Co Ltd displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
TOWA Pharmaceutical Co's Interest Coverage for the quarter that ended in Mar. 2026 was 6.23.
TOWA Pharmaceutical Co's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.81.
As of today, TOWA Pharmaceutical Co's Altman Z-Score is 1.92.
TOWA Pharmaceutical Co (OTCPK:TWAPF) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
TOWA Pharmaceutical Co has the Financial Strength Rank of 5.
TOWA Pharmaceutical Co Financial Strength Related Terms
TWAPF vs ZTS: Financial Strength Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, TOWA Pharmaceutical Co's Financial Strength, along with its competitors' market caps and Financial Strength 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.
TOWA Pharmaceutical Co Financial Strength vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, TOWA Pharmaceutical Co's Financial Strength distribution charts can be found below:
* The bar in red indicates where TOWA Pharmaceutical Co's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
TOWA Pharmaceutical Co has a Z-score of 1.92, indicating it is in Grey Zones. This implies that TOWA Pharmaceutical Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.
Warning Sign:
Altman Z-score of 1.92 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
* 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.
TOWA Pharmaceutical Co (TWAPF) has a Financial Strength of 5 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on TOWA Pharmaceutical Co and its competitors. This is 25% above median its historical median of 4.00. Over the past decade, TOWA Pharmaceutical Co's Financial Strength has ranged from 2.00 to 7.00.
Is TOWA Pharmaceutical Co's Financial Strength too high?
TOWA Pharmaceutical Co's current Financial Strength of 5 is 25% above median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 7.00. Overall, TOWA Pharmaceutical Co has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does TOWA Pharmaceutical Co's Financial Strength compare to ZTS?
TOWA Pharmaceutical Co's Financial Strength of 5 can be compared against companies in the Drug Manufacturers industry. Historically, TOWA Pharmaceutical Co's own Financial Strength has ranged from 2.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Drug Manufacturers company?
A good Financial Strength depends on the Drug Manufacturers industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on TOWA Pharmaceutical Co and its competitors. TOWA Pharmaceutical Co's current Financial Strength is 5, which is 25% above median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TOWA Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, TOWA Pharmaceutical Co (TWAPF) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.46, compared to a current price of $25.98 — trading 79.7% above its estimated fair value. The current Financial Strength is 5, which is 25% above median its 10-year median of 4.00. TOWA Pharmaceutical Co's overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For TOWA Pharmaceutical Co (TWAPF), the current Financial Strength is 5 as of Mar. 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 TOWA Pharmaceutical Co (TWAPF) Overvalued in 2026?
Based on GuruFocus' analysis, TOWA Pharmaceutical Co stock appears to be overvalued.
The current stock price of $25.98 is trading 79.7% above its estimated GF Value™ of $14.46.
GuruFocus considers TOWA Pharmaceutical Co to be Significantly Overvalued.
Key valuation signals for TWAPF:
Financial Strength: 5 (25% above median its 10-year median of 4.00)
GF Value™: $14.46 vs. price of $25.98 (79.7% above fair value)
No single metric tells the full story. See the TWAPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TOWA Pharmaceutical Co Ltd is a Japan based pharmaceutical company engaged in research and development, production, and marketing of generic drugs. It also provides drug consulting services for patients and their families and relatives. It organizes academic seminars for medical professionals and posts articles in journals. It participates in training for pharmacists. The company has three main plants in operation namely Osaka plant, Okayama plant, and Yamagata plant. Towa has offers more than 500 drugs to meet the diverse therapeutic requirements including lifestyle related diseases such as hypertension and diabetes, digestive system diseases, nervous system diseases and allergic diseases, vitamins and antibiotics.
69GF Score
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