| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1262.56 | 26 |
| Intrinsic value (DCF) | 397.71 | -60 |
| Graham-Dodd Method | 1281.02 | 28 |
| Graham Formula | 501.38 | -50 |
Mory Industries Inc. (5464.T) is a leading Japanese manufacturer specializing in stainless steel and welded carbon steel products. Founded in 1929 and headquartered in Osaka, the company produces a diverse range of products, including round, square, and modified stainless steel tubes, stainless-steel-clad tubes, joint parts, flat bars, angle bars, and round bars. Additionally, Mory Industries offers welded carbon steel tubes for machine and structural purposes, as well as tube cutting machines. Its products are widely used in construction materials, hardware, furniture, and automotive parts, positioning it as a key player in Japan's steel industry. With a market capitalization of approximately ¥34.1 billion, Mory Industries combines decades of expertise with a strong domestic presence, catering to both industrial and consumer markets. The company's commitment to quality and innovation ensures its relevance in the competitive basic materials sector.
Mory Industries presents a stable investment opportunity with its niche focus on stainless steel and carbon steel products in Japan. The company's financials reflect solid performance, with FY2024 revenue of ¥47.9 billion and net income of ¥4.52 billion, translating to a diluted EPS of ¥582.02. Its strong cash position (¥18.36 billion) and manageable total debt (¥2.05 billion) underscore financial stability. The dividend per share of ¥106 offers a modest yield, appealing to income-focused investors. However, the company's low beta (0.254) suggests limited volatility but also lower growth potential compared to broader markets. Investors should weigh its steady domestic market presence against potential risks from fluctuating steel prices and limited international diversification.
Mory Industries holds a competitive edge in Japan's specialized steel products market, leveraging its long-standing expertise and diversified product portfolio. The company's focus on stainless steel and welded carbon steel tubes for structural and industrial applications differentiates it from larger steel producers that may prioritize bulk production. Its ability to cater to niche segments—such as automotive parts and construction materials—provides resilience against broader industry downturns. However, Mory Industries faces competition from both domestic and international steel manufacturers, which may benefit from economies of scale or advanced technological capabilities. The company's competitive advantage lies in its deep-rooted relationships with Japanese industrial clients and its reputation for quality. Yet, its limited global footprint could be a drawback in an increasingly interconnected steel market. To maintain its position, Mory Industries must continue innovating its product offerings and potentially explore strategic partnerships or expansions.