| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 971.38 | 25 |
| Graham Formula | 347.06 | -55 |
TATSUTA Electric Wire and Cable Co., Ltd. (5809.T) is a leading Japanese manufacturer specializing in electric wires, cables, and advanced electronic materials. Founded in 1945 and headquartered in Higashiosaka, the company serves diverse industries, including power distribution, telecommunications, railways, medical equipment, and nuclear power plants. Its product portfolio includes high-performance cables, EMI shielding films, conductive pastes, and sensor-based solutions like water leakage detection systems. TATSUTA also provides specialized medical-grade wires and optical fiber components, positioning itself as a critical supplier in Japan's industrial and healthcare sectors. With a strong focus on innovation, the company develops functional materials for next-generation electronics, reinforcing its role in Japan's high-tech manufacturing ecosystem. TATSUTA's expertise in niche applications, such as insect-resistant and spatter-resistant cables, further differentiates it in the competitive electrical equipment market.
TATSUTA Electric Wire and Cable presents a stable investment opportunity with moderate growth potential, supported by its diversified product line and entrenched position in Japan's industrial supply chain. The company's low beta (0.55) suggests relative resilience to market volatility, while its JPY 1.77 billion net income and positive operating cash flow (JPY 3.28 billion) indicate operational efficiency. However, the absence of dividends and modest market cap (~JPY 48.1 billion) may limit appeal to income-focused investors. Risks include exposure to Japan's stagnant industrial demand and reliance on domestic markets (no explicit international revenue disclosed). The capital expenditures (JPY -2.02 billion) signal ongoing reinvestment, which could drive future competitiveness in high-margin segments like medical and sensor products.
TATSUTA competes in Japan's fragmented electrical equipment sector by leveraging specialization in high-performance cables and functional materials. Its competitive edge lies in proprietary technologies like EMI shielding films and medical-grade wires, which face limited direct competition domestically. The company's focus on niche applications (e.g., nuclear plant cables, insect-resistant solutions) creates barriers to entry, though it lacks the scale of global wire/cable giants. TATSUTA's sensor and medical divisions provide higher-margin diversification but remain small relative to core wire operations. While its JPY 64.1 billion revenue is modest compared to industry leaders, the company maintains cost discipline, evidenced by a 2.8% net margin. Challenges include competing with vertically integrated rivals in commodity cable segments and dependence on Japan's infrastructure spending cycles. Its R&D emphasis on materials science (e.g., conductive pastes) aligns with trends in electronics miniaturization but requires sustained investment to maintain differentiation.