| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 867.19 | -17 |
| Intrinsic value (DCF) | 974.66 | -6 |
| Graham-Dodd Method | 1261.74 | 21 |
| Graham Formula | 2169.15 | 109 |
Estic Corporation (6161.T) is a leading Japanese manufacturer specializing in high-precision electric power tools, industrial robots, and automated assembly solutions. Headquartered in Moriguchi, Japan, the company serves global markets across Europe, Africa, Asia, Oceania, and the United States. Its product portfolio includes handheld and fixtured nutrunners, robotic tightening systems, servo presses, and custom automation solutions tailored for industrial applications. Since its founding in 1993, Estic has built a reputation for innovation in industrial machinery, catering to sectors requiring precision assembly and automation. Operating in the Industrials sector, Estic plays a critical role in enhancing manufacturing efficiency for automotive, electronics, and other high-tech industries. With a market capitalization of approximately ¥8.85 billion, the company combines engineering expertise with a global distribution network to maintain its competitive edge.
Estic Corporation presents a stable investment opportunity with moderate growth potential in the industrial machinery sector. The company boasts a strong balance sheet, with ¥3.36 billion in cash and minimal debt (¥35.3 million), reflecting financial resilience. Its diluted EPS of ¥118.73 and dividend payout of ¥27 per share indicate shareholder-friendly policies. However, its beta of 0.735 suggests lower volatility but also limited exposure to high-growth market swings. Revenue of ¥7.88 billion and net income of ¥1.18 billion demonstrate steady operational performance, though investors should monitor global industrial demand fluctuations and competition from larger automation players. The lack of disclosed capital expenditures raises questions about future growth investments.
Estic Corporation competes in the niche market of precision industrial tools and automation systems, differentiating itself through specialized, customizable solutions. Its competitive advantage lies in its focus on high-torque fastening tools and robotic assembly systems, which are critical for industries like automotive manufacturing. The company’s relatively small size allows for agility in tailoring products to client needs, but it faces pressure from larger multinationals with broader R&D budgets and global service networks. Estic’s strong cash position and debt-light balance sheet provide flexibility, but its growth may be constrained by its regional concentration in Japan and reliance on industrial cyclicality. While it lacks the scale of giants like Fanuc, its expertise in nutrunner technology and servo presses offers a defensible niche. The shift toward Industry 4.0 and smart factories presents both opportunities (demand for automation) and threats (increased competition from tech-integrated rivals).