| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1285.82 | -25 |
| Intrinsic value (DCF) | 451.55 | -74 |
| Graham-Dodd Method | 1343.43 | -22 |
| Graham Formula | 991.46 | -42 |
Kurimoto, Ltd. (5602.T) is a leading Japanese manufacturer specializing in ductile iron pipes, industrial valves, and construction materials, with a diversified portfolio spanning disaster prevention products, automotive components, and energy-related equipment. Founded in 1909 and headquartered in Osaka, the company serves domestic and international markets with high-performance solutions for water infrastructure, industrial machinery, and environmental applications. Kurimoto’s product range includes resilient valves, sewerage systems, wear-resistant castings, and fiber-reinforced plastic (FRP) products, catering to sectors like utilities, construction, and manufacturing. With a strong focus on durability and innovation, Kurimoto plays a critical role in Japan’s infrastructure development while expanding its global footprint. The company’s expertise in materials engineering and plant equipment positions it as a key player in the steel and basic materials sector, supporting sustainable industrial growth.
Kurimoto, Ltd. presents a stable investment profile with a low beta (0.228), indicating lower volatility relative to the market. The company reported revenue of ¥125.9 billion and net income of ¥5.47 billion for FY 2024, with a solid dividend payout of ¥288 per share. Its strong cash position (¥19.4 billion) and manageable debt (¥15 billion) suggest financial resilience. However, reliance on Japan’s infrastructure spending and competitive industrial markets may limit growth. Investors may value Kurimoto’s steady cash flow (¥10.3 billion operating cash flow) and niche expertise in ductile iron and FRP products, but should monitor global demand fluctuations and raw material costs.
Kurimoto’s competitive advantage lies in its long-standing expertise in ductile iron pipes and industrial valves, critical for Japan’s water and energy infrastructure. The company’s diversified product line, including disaster prevention and FRP solutions, mitigates sector-specific risks. Kurimoto benefits from domestic demand driven by Japan’s aging infrastructure and stringent quality standards, but faces competition from global industrial manufacturers. Its focus on high-margin, specialized products (e.g., wear-resistant castings) differentiates it from generic steel pipe producers. However, limited international brand recognition compared to multinational peers could hinder expansion. Kurimoto’s R&D in fiber-reinforced materials and energy equipment positions it for growth in sustainable technologies, though scalability remains a challenge.