| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 9677.89 | -15 |
| Intrinsic value (DCF) | 4664.00 | -59 |
| Graham-Dodd Method | 10290.13 | -10 |
| Graham Formula | 7331.57 | -36 |
Makino Milling Machine Co., Ltd. (6135.T) is a leading Japanese manufacturer of precision machine tools, serving industries such as electronics, automotive, and aerospace. Founded in 1937 and headquartered in Tokyo, the company specializes in high-performance machining centers, CNC electrical discharge machines (EDMs), and milling machines, complemented by CAD/CAM systems and flexible manufacturing solutions (FMS). With a global footprint spanning Japan, China, the Americas, Europe, and other Asian markets, Makino is recognized for its engineering expertise and advanced manufacturing technologies. The company’s focus on innovation and automation positions it as a key player in the industrial machinery sector, catering to manufacturers requiring ultra-precision machining for complex components. Makino’s strong R&D capabilities and after-sales services further enhance its competitive edge in the high-end machine tool market.
Makino Milling Machine presents a stable investment opportunity with its niche focus on high-precision machine tools and a diversified global clientele. The company’s low beta (0.17) suggests resilience to market volatility, while its consistent dividend payout (¥180 per share) adds appeal for income-focused investors. However, the capital-intensive nature of the industry and exposure to cyclical demand from sectors like automotive and aerospace pose risks. Revenue (¥234.2B) and net income (¥14.4B) reflect steady performance, but high capital expenditures (¥-14.9B) indicate ongoing investments in innovation—a necessity to maintain competitiveness against global rivals. Investors should weigh Makino’s technological leadership against macroeconomic headwinds affecting industrial spending.
Makino Milling Machine competes in the high-end segment of the machine tool industry, where precision, reliability, and after-sales support are critical differentiators. Its strengths lie in advanced CNC and EDM technologies, particularly for aerospace and electronics applications, where tolerances are extremely tight. The company’s vertical integration—from R&D to service—allows it to capture value across the product lifecycle. However, it faces intense competition from German and Swiss manufacturers known for ultra-precision engineering, as well as cost-driven rivals from China and South Korea. Makino’s focus on Japan and Asia provides regional advantages but limits scale compared to globally dominant players like DMG Mori. Its moderate market cap (¥231.5B) suggests it is a mid-tier player globally, though it holds a stronger position in Asia-Pacific. The company’s ability to innovate in automation and IoT-enabled machining will be pivotal to countering competitors’ advancements in smart manufacturing.