investorscraft@gmail.com

Stock Analysis & ValuationABIST Co.,Ltd. (6087.T)

Professional Stock Screener
Previous Close
¥3,380.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)2944.74-13
Intrinsic value (DCF)1838.16-46
Graham-Dodd Method963.67-71
Graham Formula2012.14-40

Strategic Investment Analysis

Company Overview

ABIST Co., Ltd. is a Japan-based industrial design technology service provider specializing in engineering contracting and workforce dispatch. Founded in 1998 and headquartered in Tokyo, the company offers a diverse range of services, including mechanical design, system software development, electrical and electronic design, 3D print modeling, and 3D-CAD data production and analysis. Additionally, ABIST operates in 3D-CAD education, real estate leasing, and hydrogen water manufacturing, showcasing its diversified business model. Operating in the Industrials sector, specifically Industrial Machinery, ABIST serves as a critical partner for companies requiring specialized engineering solutions. With a market capitalization of approximately ¥12.67 billion, the company maintains a strong financial position, supported by steady revenue growth and a solid cash reserve. ABIST's expertise in high-demand technical fields positions it well in Japan's industrial landscape, where precision engineering and advanced manufacturing are key economic drivers.

Investment Summary

ABIST Co., Ltd. presents a niche investment opportunity within Japan's industrial technology sector. The company's diversified service offerings, including mechanical design, software development, and 3D-CAD solutions, provide stability across multiple revenue streams. With a market cap of ¥12.67 billion and a low beta of 0.552, ABIST exhibits lower volatility compared to broader markets, appealing to risk-averse investors. The company reported ¥10 billion in revenue and ¥611 million in net income for the latest fiscal period, with a diluted EPS of ¥153.55. ABIST maintains a strong balance sheet, with ¥4.49 billion in cash and minimal debt (¥50 million). However, investors should note the company's modest operating cash flow of ¥572 million and limited capital expenditures, which may indicate slower growth prospects. The dividend yield, supported by a ¥102 per share payout, adds income appeal. ABIST's specialization in industrial design services offers resilience, but its reliance on Japan's domestic market may limit expansion opportunities.

Competitive Analysis

ABIST Co., Ltd. operates in a competitive niche within Japan's industrial design and engineering services sector. Its primary competitive advantage lies in its diversified service portfolio, combining mechanical design, software development, and 3D-CAD expertise under one roof. This integration allows ABIST to serve clients with end-to-end solutions, reducing the need for multiple vendors. The company's focus on high-demand technical fields, such as 3D modeling and CAD data production, positions it well in Japan's advanced manufacturing ecosystem. ABIST's additional ventures in 3D-CAD education and hydrogen water manufacturing provide supplementary revenue streams, though these segments are less core to its industrial focus. Financially, ABIST's strong cash position and low debt enhance its stability, but its relatively small market cap limits its ability to compete with larger industrial service providers on a global scale. The company's domestic focus may shield it from international competition but also restricts growth potential outside Japan. ABIST's competitive positioning is further strengthened by its long-standing presence (founded in 1998) and established client relationships in Japan's industrial sector. However, it faces challenges from larger firms with broader technological capabilities and global reach.

Major Competitors

  • SMC Corporation (6273.T): SMC Corporation is a global leader in pneumatic and automation technology, offering a broader product range compared to ABIST's service-focused model. SMC's strengths include its extensive international presence and strong R&D capabilities, but its larger scale may make it less agile in niche engineering services where ABIST specializes.
  • Okuma Corporation (6103.T): Okuma specializes in CNC machine tools and factory automation, competing indirectly with ABIST in industrial design services. Okuma's strength lies in its manufacturing expertise, but ABIST holds an advantage in customized engineering solutions and 3D-CAD services.
  • Amada Co., Ltd. (6113.T): Amada is a major player in metalworking machinery and industrial equipment. While Amada has a stronger brand in manufacturing hardware, ABIST differentiates itself with software development and design services, filling a complementary niche in the industrial ecosystem.
  • Daikin Industries (6367.T): Daikin is a diversified industrial giant with strengths in HVAC and fluorochemicals. Though not a direct competitor, Daikin's scale and resources overshadow smaller firms like ABIST in bidding for large industrial projects. ABIST maintains an edge in specialized engineering design services.
HomeMenuAccount