| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2916.32 | 40 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 2639.28 | 26 |
| Graham Formula | 2543.92 | 22 |
Meiji Electric Industries Co., Ltd. is a leading Japanese company specializing in the import, export, and sale of electrical devices, measuring instruments, and automation equipment. Founded in 1920 and headquartered in Nagoya, Japan, the company operates in the Technology sector, focusing on Hardware, Equipment & Parts. Meiji Electric designs, develops, and manufactures inspection, mechatronic, and FA (Factory Automation) systems, alongside providing energy-saving solutions and electronic products. The company also offers consulting services for measurement, control, and information processing, as well as maintenance services for industrial instrumentation. With a strong presence in Japan, Meiji Electric serves diverse industries by integrating advanced technology and automation solutions. Its commitment to innovation and energy efficiency positions it as a key player in the industrial and electrical equipment market.
Meiji Electric Industries presents a stable investment opportunity with a market capitalization of approximately ¥22.8 billion and a low beta of 0.324, indicating lower volatility compared to the broader market. The company reported solid financials for FY 2024, with revenue of ¥74.6 billion and net income of ¥2.4 billion, translating to a diluted EPS of ¥191.46. Operating cash flow was healthy at ¥5.7 billion, and the company maintains a strong balance sheet with ¥7.3 billion in cash and minimal debt (¥25.8 million). A dividend of ¥60 per share adds to its appeal for income-focused investors. However, its niche focus on industrial and electrical equipment may limit growth compared to broader tech players. Investors should weigh its stability and dividend yield against potential sector-specific risks.
Meiji Electric Industries competes in the industrial automation and electrical equipment market, leveraging its long-standing expertise in Japan. Its competitive advantage lies in its integrated solutions, combining hardware, software, and maintenance services, which fosters customer loyalty. The company’s focus on energy-saving and automation aligns with Japan’s industrial efficiency trends, giving it an edge in domestic markets. However, its relatively small scale compared to global giants may limit its ability to compete on pricing and R&D investments. Meiji Electric’s strength in FA (Factory Automation) and mechatronics positions it well in niche industrial applications, but it faces stiff competition from larger multinational firms with broader product portfolios and global distribution networks. Its low debt and strong cash position provide financial flexibility, but growth may depend on expanding beyond its core Japanese market.