| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2443.99 | 6 |
| Intrinsic value (DCF) | 1170.57 | -49 |
| Graham-Dodd Method | 3973.40 | 73 |
| Graham Formula | 2888.46 | 25 |
Tenryu Saw Mfg. Co., Ltd. (5945.T) is a leading Japanese manufacturer specializing in high-quality saw blades and cutting tools for industrial and woodworking applications. Founded in 1909 and headquartered in Fukuroi, Japan, the company produces a diverse range of products, including carbide-tipped saw blades, HSS tools, diamond saw blades, and band saw processing machines. Tenryu serves both domestic and international markets, catering to industries such as metalworking, construction, and wood processing. With a strong reputation for precision engineering and durability, Tenryu’s products are essential for professional-grade cutting solutions. The company operates in the industrials sector, specifically within the tools and accessories manufacturing industry, and maintains a solid financial position with zero debt and a robust cash reserve. Its long-standing expertise and innovation in saw blade technology position it as a key player in the global cutting tools market.
Tenryu Saw Mfg. Co., Ltd. presents a stable investment opportunity with low volatility (beta: 0.096) and a strong balance sheet, featuring zero debt and substantial cash reserves. The company reported a net income of ¥1.23 billion in FY 2024, with diluted EPS of ¥132.56 and a dividend payout of ¥82 per share, indicating shareholder-friendly policies. However, its revenue of ¥11.94 billion suggests a niche market presence, limiting rapid growth potential. The company’s focus on high-precision cutting tools provides resilience against economic downturns, but its reliance on industrial demand may expose it to cyclical risks. Investors seeking steady returns in a specialized manufacturing segment may find Tenryu attractive, though those looking for high-growth opportunities might consider more diversified industrial players.
Tenryu Saw Mfg. Co., Ltd. holds a competitive edge in the precision saw blade and cutting tools market due to its long-standing expertise, high-quality manufacturing, and strong brand reputation in Japan. The company’s zero-debt financial structure and significant cash reserves provide stability and flexibility for R&D and operational investments. However, its relatively small market cap (~¥16.9 billion) and niche focus limit its ability to compete with larger multinational tool manufacturers. Tenryu’s specialization in carbide and diamond-tipped blades gives it an advantage in durability and performance, particularly in metal and woodworking applications. Yet, it faces competition from global players with broader product portfolios and stronger distribution networks. The company’s domestic market dominance is a strength, but international expansion remains constrained by competition from established Western and Asian manufacturers. Continuous innovation in blade technology and potential strategic partnerships could enhance its competitive positioning.