| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 411.42 | -31 |
| Intrinsic value (DCF) | 229.24 | -61 |
| Graham-Dodd Method | 320.91 | -46 |
| Graham Formula | 467.56 | -21 |
Yamashin-Filter Corp. (6240.T) is a leading Japanese manufacturer specializing in high-performance filtration solutions for industrial, construction, and agricultural machinery. Headquartered in Yokohama, the company produces a diverse range of filters, including hydraulic fluid filters, engine oil filters, fuel filters, and industrial process filters, catering to sectors such as automotive, electronics, and food processing. Yamashin-Filter also innovates in nano-filtration technology, offering medical-grade masks and air purification products. With operations spanning Japan, Asia, North America, and Europe, the company serves a global clientele, ensuring machinery longevity and efficiency through advanced filtration systems. As part of the industrials sector, Yamashin-Filter plays a critical role in maintaining operational reliability for heavy machinery and precision equipment, positioning itself as a key player in the industrial filtration market.
Yamashin-Filter Corp. presents a stable investment opportunity with a market cap of ¥40.5 billion and a low beta of 0.573, indicating lower volatility compared to the broader market. The company reported revenue of ¥18.02 billion and net income of ¥786.58 million for FY 2024, with a diluted EPS of ¥11.01. Strong operating cash flow of ¥2.63 billion and a healthy cash position of ¥5.07 billion provide financial resilience. However, the modest net income margin (~4.4%) suggests potential sensitivity to input cost fluctuations. The dividend yield, based on a ¥12 per share payout, may appeal to income-focused investors, but growth prospects depend on industrial demand and expansion in nano-filtration applications. Risks include exposure to cyclical machinery markets and competition from global filtration leaders.
Yamashin-Filter Corp. competes in the industrial filtration niche with a focus on construction and agricultural machinery, differentiating itself through specialized product lines like nano-filters and medical-grade masks. Its competitive advantage lies in deep domain expertise in hydraulic and fuel filtration, critical for heavy machinery durability. The company’s vertically integrated manufacturing in Japan ensures quality control but may limit cost competitiveness against rivals with broader global production bases. While Yamashin-Filter’s regional presence in Asia provides steady demand, it faces challenges scaling in North America and Europe, where established players like Donaldson and Parker Hannifin dominate. Innovation in nano-filtration could open new growth avenues, but R&D spending remains modest compared to multinational peers. The company’s mid-tier size allows agility in custom solutions but may constrain pricing power against larger competitors with economies of scale.