| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1250.94 | 14 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 2094.18 | 91 |
| Graham Formula | 474.06 | -57 |
Ohara Inc. (5218.T) is a leading Japanese manufacturer specializing in high-performance glass materials for optical and electronics applications. Founded in 1935 and headquartered in Sagamihara-Shi, Japan, the company produces a diverse range of products, including optical glass, low Tg optical glasses for mold lenses, ultra-low expansion glass-ceramics, and lithium-ion conductive glass-ceramics. Ohara serves global markets with its advanced materials used in precision optics, telecommunications (DWDM filters), and electronics (magnetic head testers). The company also offers measurement and analysis services for optical materials, reinforcing its technical expertise. Operating in the Technology sector's Hardware, Equipment & Parts industry, Ohara combines decades of material science innovation with niche manufacturing capabilities, positioning itself as a critical supplier for high-tech industries requiring extreme material precision and reliability.
Ohara Inc. presents a specialized investment opportunity in advanced materials, with a modest market cap of ¥24.99B (JPY) and low beta (0.592), suggesting lower volatility than the broader market. While revenue (¥27.9B) and net income (¥1.57B) indicate stable operations, the company's thin profit margins (EPS ¥64.36) and significant cash reserves (¥15.16B) versus debt (¥5.86B) suggest conservative financial management. The dividend yield (~1.5% at current prices) is modest. Key attractions include Ohara's niche leadership in glass-ceramics and optical materials—critical for growing sectors like photonics and advanced electronics. Risks include reliance on cyclical tech/industrial demand and potential margin pressures from R&D costs in this specialized field. The ¥1.62B capital expenditure signals ongoing capacity investments, but investors should monitor revenue growth in international markets (currently ~40% of sales) for scalability.
Ohara competes in the specialized glass and advanced ceramics market, where technical differentiation and material purity are critical. Its primary competitive advantage lies in proprietary formulations like ultra-low expansion glass-ceramics (used in semiconductor lithography) and eco-optical glasses, which cater to stringent industry requirements. Unlike commoditized glass producers, Ohara's expertise in high-transmission, low-photoelastic materials creates barriers to entry. However, the company faces challenges from larger global materials science firms with broader R&D budgets (e.g., Corning, Schott). Ohara's focus on Japan-based manufacturing (likely 60%+ of production) ensures quality control but may limit cost competitiveness against regional players like Hoya in Asia. The company's measurement services division adds sticky customer relationships, though it contributes minimally to revenue. While Ohara's lithium-ion conductive glass-ceramics show promise for next-gen batteries, commercialization risks remain versus established electrolyte material suppliers. Its ¥15B cash position provides flexibility for niche acquisitions or R&D, but scale limitations persist in competing for mega-projects (e.g., EUV lithography) dominated by Corning/AGC.