| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1046.80 | 127 |
| Intrinsic value (DCF) | 290.15 | -37 |
| Graham-Dodd Method | 428.68 | -7 |
| Graham Formula | 468.09 | 1 |
nms Holdings Corporation (2162.T) is a diversified Japanese company operating in human resource services, electronics manufacturing, and power supply solutions. Headquartered in Tokyo, the company provides worker and engineer dispatch services, third-party logistics, and technical distribution processing, catering primarily to Japan's manufacturing sector. Its electronics manufacturing services (EMS) include substrate mounting, assembly, and repair, while its power supply division designs and manufactures high-voltage transformers, battery management systems, and automotive-related equipment. With a strong presence in office automation, industrial medicine, and home appliances, nms Holdings serves a broad industrial clientele. The company, formerly known as Nippon Manufacturing Service Corporation, rebranded in 2017 to reflect its expanded business model. Despite its modest market cap of ¥10.46 billion, nms Holdings maintains a stable revenue stream of ¥72.87 billion, supported by its diversified operations and technical expertise in niche manufacturing segments.
nms Holdings presents a mixed investment profile. Its diversified operations across human resources, EMS, and power supply segments provide revenue stability, but its low beta (0.229) suggests limited correlation with broader market movements. The company's net income of ¥737 million and diluted EPS of ¥47.42 indicate modest profitability, while its operating cash flow of ¥4.77 billion supports financial health. However, high total debt (¥21.74 billion) relative to cash reserves (¥4.26 billion) raises leverage concerns. The ¥14 dividend per share offers a yield, but growth investors may find its electronics manufacturing segment—exposed to cyclical demand—less attractive compared to pure-play tech firms. Its competitive positioning in Japan's niche industrial markets provides stability but may limit international expansion opportunities.
nms Holdings operates in three distinct but interconnected segments, each with unique competitive dynamics. In human resource services, it competes with domestic staffing firms, leveraging its specialization in manufacturing-sector placements. Its EMS division faces competition from larger global contract manufacturers, but nms differentiates through repair services and substrate assembly—a niche where scale is less critical than technical precision. The power supply business competes with industrial component suppliers, where its high-voltage and automotive-related products benefit from Japan's strong industrial base. The company's key advantage lies in its integrated service model, offering combined workforce and manufacturing solutions—a rarity among smaller Japanese firms. However, its lack of global scale in EMS (compared to giants like Foxconn) and dependence on Japan's domestic industrial demand limit growth potential. Its R&D focus on battery management systems aligns with EV trends but requires further investment to compete with specialized tech suppliers. Financially, its moderate profitability and high debt constrain aggressive expansion, making it a stable but not high-growth player in its niches.