| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 2586.95 | 0 |
| Graham Formula | 713.84 | -73 |
Takisawa Machine Tool Co., Ltd. (6121.T) is a leading Japanese manufacturer of precision machine tools, specializing in CNC lathes, multi-tasking machines, machining centers, and industrial automation solutions. Founded in 1922 and headquartered in Okayama, Japan, the company serves both domestic and international markets with high-performance equipment for metalworking and manufacturing applications. Takisawa's product portfolio includes CNC/manual lathes, engine lathes, piston machines, and FA (factory automation) cells, supported by comprehensive technical services. Operating in the industrial machinery sector, Takisawa plays a critical role in Japan's advanced manufacturing ecosystem, catering to industries requiring precision machining, such as automotive, aerospace, and industrial equipment. With a market capitalization of approximately ¥16.6 billion, the company combines decades of engineering expertise with modern CNC technology to maintain its position in the competitive global machine tool industry.
Takisawa Machine Tool presents a mixed investment profile. The company benefits from Japan's strong industrial machinery sector and its established reputation for precision engineering. However, FY 2023 financials show challenges, including negative operating cash flow (-¥41.3 million) and modest net income (¥333 million on ¥27.9 billion revenue). The company maintains a solid cash position (¥7.8 billion) but carries significant debt (¥6.5 billion). With a beta of 0.71, Takisawa exhibits lower volatility than the broader market, potentially appealing to conservative investors. The dividend yield appears substantial (¥27 per share), but investors should scrutinize payout sustainability given cash flow concerns. Long-term prospects depend on Takisawa's ability to compete against larger global players in CNC machinery and automation while managing its financial leverage.
Takisawa Machine Tool operates in a highly competitive segment of the industrial machinery market, competing on precision, reliability, and technological sophistication. The company's competitive advantage lies in its specialized CNC lathes and multi-tasking machines, where it leverages decades of Japanese machining expertise. However, its mid-tier size (¥27.9 billion revenue) limits economies of scale compared to global giants like DMG Mori or Okuma. Takisawa's focus on Japan (a mature but stable market) provides a steady customer base but may constrain growth compared to competitors aggressively expanding in emerging markets. The company's negative operating cash flow in FY 2023 raises questions about its operational efficiency versus peers. Its product lineup is respected but lacks the breadth of integrated smart factory solutions offered by larger rivals. Takisawa's competitive positioning is strongest in niche applications requiring high-precision, customizable machines, where it can differentiate from mass-produced alternatives. The company's challenge is to enhance automation offerings and service capabilities while maintaining profitability in a capital-intensive industry.