| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 663.28 | -10 |
| Intrinsic value (DCF) | 514.98 | -30 |
| Graham-Dodd Method | 748.78 | 2 |
| Graham Formula | 1808.48 | 146 |
NPC Incorporated (6255.T) is a Tokyo-based industrial machinery company specializing in automated manufacturing equipment and environmental solutions. Operating in the Industrials sector, NPC develops and sells machinery for diverse industries, including automotive, electronics, film, pharmaceuticals, food, and logistics. The company is a key player in photovoltaic (PV) module manufacturing, offering cell testers, tabbing and stringing machines, laminators, and inspection devices. Additionally, NPC provides PV panel inspection services, recycling solutions, and rents factory spaces. Founded in 1992, NPC has established itself as a niche provider of vacuum bonding machines for LCDs, OLED displays, and automotive components. With a market cap of ¥15.3 billion, the company serves global manufacturing and renewable energy sectors, positioning itself at the intersection of automation and sustainability.
NPC Incorporated presents a mixed investment profile. The company operates in high-growth niches like PV manufacturing equipment and automation, benefiting from global renewable energy and Industry 4.0 trends. Its debt-free balance sheet (¥5.24 billion cash) and positive net income (¥1.68 billion) suggest financial stability. However, the high beta (1.57) indicates volatility, and modest operating cash flow (¥558 million) raises questions about liquidity. The 0.13% dividend yield is nominal. Investors may be attracted to NPC's exposure to sustainable technologies but should weigh its small-cap risks and dependence on industrial capex cycles.
NPC competes in specialized industrial machinery segments where precision and technological expertise are critical. Its PV equipment business competes with larger solar manufacturing system providers, but NPC differentiates through integrated inspection/recycling solutions—a growing need as solar panel waste concerns escalate. In vacuum bonding machines, NPC's focus on display and automotive applications provides sticky customer relationships, though R&D costs to keep pace with display tech evolution are high. The company's lack of debt is a competitive strength in cyclical industries, allowing flexibility. However, NPC's scale disadvantage versus multinational machinery conglomerates limits its ability to compete on large turnkey projects. Its ¥10.8 billion revenue is modest for the sector, suggesting niche positioning rather than broad industrial dominance. NPC's Japan base provides quality perception advantages in precision machinery but may limit cost competitiveness against Korean or Chinese rivals. The environmental recycling segment could become a differentiator as PV panel disposal regulations tighten globally.