| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1338.68 | -45 |
| Intrinsic value (DCF) | 492.88 | -80 |
| Graham-Dodd Method | 1633.79 | -33 |
| Graham Formula | 2844.45 | 16 |
UACJ Corporation (5741.T) is a leading Japanese manufacturer and global supplier of aluminum products, serving industries such as automotive, aerospace, packaging, and industrial applications. Founded in 1897 and headquartered in Tokyo, UACJ specializes in flat-rolled, extruded, and forged aluminum products, including high-performance alloys for beverage cans, automotive panels, lithium-ion battery housings, and aerospace components. The company operates across Japan and international markets, leveraging advanced metallurgical expertise to provide lightweight, corrosion-resistant, and high-strength aluminum solutions. UACJ's diversified product portfolio caters to growing demand in electric vehicles (EVs), renewable energy, and sustainable packaging, positioning it as a key player in the global aluminum industry. With a strong focus on R&D and precision manufacturing, UACJ supports technological advancements in mobility and energy efficiency while maintaining a commitment to environmental sustainability.
UACJ Corporation presents a mixed investment profile. Strengths include its established position in high-growth segments like EV battery materials and aerospace alloys, supported by JPY 89.3 billion in revenue (FY 2024) and a stable dividend yield (JPY 150/share). However, high total debt (JPY 320.9 billion) and modest net income (JPY 13.9 billion) raise leverage concerns. The stock's low beta (0.866) suggests relative stability, but exposure to cyclical aluminum prices and energy-intensive production could pressure margins. Positive operating cash flow (JPY 94.9 billion) and strategic focus on lightweight materials for automotive electrification offer long-term upside, though competition from Chinese aluminum producers remains a key risk.
UACJ holds a competitive edge in high-value aluminum products, particularly for automotive and aerospace applications, where its specialized alloys (e.g., for EV battery cases and aircraft components) command premium pricing. Its vertical integration—from casting to precision machining—enhances supply chain control. However, the company faces intense competition in commoditized aluminum products from low-cost producers like China Hongqiao. UACJ's R&D focus on advanced alloys (e.g., thermal-conductive materials for heat exchangers) differentiates it in niche markets, but scalability lags behind global giants like Novelis. Geographic concentration in Japan (64% of revenue) limits diversification compared to rivals with broader global footprints. Strategic partnerships with automakers and investments in recycling capabilities strengthen its sustainability profile, a growing priority for OEMs. The company's main challenge is balancing debt reduction with CAPEX needs (JPY -33.2 billion in FY 2024) to maintain technological leadership.