Stock Analysis & Valuation Nihon Yamamura Glass Co., Ltd. (5210.T)

• Previous Close: ¥3,085.00
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, ¥	Upside, %
Artificial intelligence (AI)	3362.28	9
Intrinsic value (DCF)	950.78	-69
Graham-Dodd Method	5526.59	79
Graham Formula	2259.12	-27

Strategic Investment Analysis

Company Overview

Nihon Yamamura Glass Co., Ltd. (5210.T) is a leading Japanese manufacturer specializing in glass bottles, plastic closures, and related packaging solutions. Founded in 1914 and headquartered in Amagasaki, Japan, the company serves domestic and international markets with a diversified product portfolio that includes powdered glass, glass paste, and machinery for glass production. Operating in the Consumer Cyclical sector under the Packaging & Containers industry, Nihon Yamamura Glass plays a critical role in supplying essential packaging materials to beverage, food, and pharmaceutical industries. The company’s vertically integrated operations—from raw material processing to machinery design—enhance its competitive edge in cost efficiency and product innovation. With a market capitalization of approximately ¥24.7 billion, Nihon Yamamura Glass maintains a stable financial position, supported by consistent revenue streams and a strong presence in Japan’s industrial supply chain.

Investment Summary

Nihon Yamamura Glass presents a low-beta (0.09) investment with stable revenue (¥72.9 billion) and robust net income (¥12.3 billion), reflecting resilience in cyclical markets. The company’s dividend yield (~3.7% based on a ¥115/share payout) and strong cash position (¥10.99 billion) underscore its shareholder-friendly approach. However, risks include high total debt (¥22.9 billion) and exposure to commodity price volatility for glass raw materials. Capital expenditures (¥-2.5 billion) suggest moderate growth investments, while its niche focus on Japan (with limited international diversification) may constrain upside. Suitable for conservative investors seeking defensive exposure to industrial packaging.

Competitive Analysis

Nihon Yamamura Glass competes in the fragmented packaging industry by leveraging its vertical integration and long-standing client relationships in Japan. Its dual focus on glass bottles and plastic closures allows cross-selling opportunities, while proprietary machinery design capabilities reduce reliance on third-party suppliers. The company’s competitive moat lies in its specialized powdered glass and paste products, which cater to niche industrial applications. However, it faces pricing pressure from larger global players like Owens-Illinois and regional rivals with broader geographic reach. Its domestic dominance (Japan contributes the majority of revenue) insulates it from currency risks but limits growth compared to multinational peers. Environmental concerns around glass production (energy intensity) and shifting consumer preferences toward lightweight plastics pose long-term challenges. The company’s R&D focus on eco-friendly glass solutions (e.g., recyclability) could differentiate it in sustainability-conscious markets.

Major Competitors

• Owens-Illinois, Inc. (OI): Owens-Illinois is a global leader in glass container manufacturing with a presence in 20+ countries. Its scale and diversified client base (e.g., Heineken, Pepsi) give it pricing power, but high debt and exposure to North American/European markets limit agility. Unlike Nihon Yamamura, OI lacks machinery design capabilities, relying on external suppliers.
• Rengo Co., Ltd. (4681.T): Rengo dominates Japan’s packaging sector with a focus on corrugated boxes and flexible packaging. Its strength in paper-based solutions competes indirectly with Nihon Yamamura’s glass products, especially in eco-conscious segments. Rengo’s larger R&D budget and international joint ventures (e.g., with Vietnam’s SCG) pose a threat to Yamamura’s domestic stronghold.
• Teijin Limited (3401.T): Teijin’s advanced materials division produces high-performance plastics, competing with Yamamura’s plastic closures. Its technological edge in lightweight composites appeals to automotive/aerospace clients, but lacks Yamamura’s glass expertise. Teijin’s global footprint (50+ countries) contrasts with Yamamura’s Japan-centric model.
• Dai Nippon Printing Co., Ltd. (7912.T): DNP’s diversified packaging portfolio (including glass and plastic) overlaps with Yamamura’s offerings. Its strengths in decorative printing and RFID-integrated packaging provide added value, but its broader business (e.g., electronics) dilutes focus on core packaging competitiveness.