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Stock Analysis & ValuationTakuma Co., Ltd. (6013.T)

Professional Stock Screener
Previous Close
¥2,496.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1690.17-32
Intrinsic value (DCF)942.40-62
Graham-Dodd Method1257.70-50
Graham Formula1252.28-50

Strategic Investment Analysis

Company Overview

Takuma Co., Ltd. (6013.T) is a leading Japanese industrial company specializing in environmental and energy solutions, including waste treatment, biomass power plants, and boiler systems. Headquartered in Amagasaki, Japan, Takuma operates across four key segments: Domestic Environment and Energy, Overseas Environment and Energy, Package Boiler, and Equipment and System Business. The company provides critical infrastructure for pollution control, wastewater treatment, and sustainable energy generation, serving both domestic and international markets. With a history dating back to 1938, Takuma has established itself as a trusted provider of industrial boilers and environmental equipment, particularly in Japan's growing waste-to-energy sector. The company's expertise in designing and constructing waste combustion and biomass power plants positions it well in the global push toward sustainable industrial practices. Takuma's diversified business model, spanning environmental solutions, energy efficiency, and industrial equipment, makes it a key player in Japan's industrial and environmental technology landscape.

Investment Summary

Takuma Co., Ltd. presents a stable investment opportunity within Japan's environmental and industrial sectors, supported by its strong market position in waste-to-energy and pollution control solutions. The company's diversified revenue streams, including domestic and overseas operations, mitigate regional risks. However, investors should note the negative operating cash flow (-¥12.2 billion) in the latest fiscal year, which may raise concerns about short-term liquidity despite a solid net income (¥8.75 billion). Takuma's low beta (0.614) suggests lower volatility compared to the broader market, appealing to risk-averse investors. The company pays a steady dividend (¥66 per share), enhancing its attractiveness for income-focused portfolios. Long-term growth prospects hinge on Japan's continued investment in environmental infrastructure and global demand for sustainable energy solutions.

Competitive Analysis

Takuma Co., Ltd. holds a competitive advantage in Japan's environmental and energy equipment sector, particularly in waste treatment and biomass power plants. Its vertically integrated business model—spanning design, construction, and maintenance—allows it to capture value across the project lifecycle. The company's strong domestic presence, bolstered by Japan's stringent environmental regulations, provides a steady revenue base. However, Takuma faces intensifying competition from global engineering firms and local players expanding into renewable energy and waste management. Its Overseas Environment and Energy Business segment is relatively small compared to domestic operations, limiting its global footprint. The company's Package Boiler segment benefits from specialized technology but competes with larger industrial conglomerates. Takuma's competitive positioning relies on its engineering expertise and long-standing client relationships, though it may need to scale its international operations to sustain growth amid rising competition in Asia's environmental infrastructure market.

Major Competitors

  • JGC Holdings Corporation (1963.T): JGC Holdings is a major Japanese engineering firm with a strong global presence in energy and environmental infrastructure. It competes with Takuma in waste-to-energy and industrial plant construction but has a broader portfolio, including oil and gas. JGC's larger scale and international reach give it an advantage in overseas projects, though Takuma retains deeper expertise in specialized boiler systems.
  • Chiyoda Corporation (6366.T): Chiyoda is another Japanese engineering competitor, specializing in energy and environmental plants. It overlaps with Takuma in waste treatment and biomass projects but focuses more on large-scale LNG and hydrocarbon facilities. Chiyoda's stronger financial position allows for bigger project bids, though Takuma's niche in compact boilers provides differentiation.
  • Air Water Inc. (6291.T): Air Water operates in industrial gases, chemicals, and environmental solutions, competing with Takuma in waste treatment and energy systems. Its diversified business model provides stability, but Takuma's specialized focus on boilers and pollution control equipment gives it an edge in certain industrial applications.
  • Hitachi Zosen Corporation (7004.T): Hitachi Zosen is a direct competitor in environmental plants and waste-to-energy systems. It has a broader product range, including heavy machinery, but Takuma's expertise in compact boilers and biomass solutions allows for targeted competition in specific niches. Both companies benefit from Japan's push for sustainable waste management.
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