| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3312.41 | 9 |
| Intrinsic value (DCF) | 1546.84 | -49 |
| Graham-Dodd Method | 1658.01 | -46 |
| Graham Formula | 2747.57 | -10 |
Teikoku Electric Mfg. Co., Ltd. is a leading Japanese manufacturer specializing in electrical equipment and general machinery, with a strong presence in industrial applications. Founded in 1939 and headquartered in Tatsuno, Japan, the company produces a diverse range of products, including canned motor pumps, metering pumps, agitators, and automotive electronics for industries such as petrochemical, nuclear power, pharmaceuticals, and food processing. Teikoku Electric's sealless pump technology is particularly notable for its reliability in handling corrosive and hazardous fluids, making it a preferred choice in critical industrial environments. The company operates globally, serving markets in the U.S., China, Germany, India, and South Korea, among others. With a market capitalization of approximately ¥50.9 billion, Teikoku Electric combines engineering expertise with a stable financial position, reinforcing its role as a key player in the industrial machinery sector.
Teikoku Electric Mfg. presents a stable investment opportunity with moderate growth potential, supported by its niche expertise in sealless pump technology and diversified industrial applications. The company's financials indicate solid profitability, with a net income of ¥3.13 billion and a diluted EPS of ¥173.81 for FY 2024. Its low beta (0.76) suggests relative resilience to market volatility, appealing to risk-averse investors. However, revenue growth may be constrained by its heavy reliance on industrial sectors, which are cyclical. The dividend yield, at ¥110 per share, adds income appeal, but investors should monitor global industrial demand and competition in specialized pump markets. Capital expenditures (¥840 million) indicate ongoing investment in production capabilities, which could enhance long-term competitiveness.
Teikoku Electric Mfg. holds a competitive edge in sealless pump technology, a critical differentiator in industries requiring leak-free fluid handling, such as chemicals and nuclear power. Its product durability and customization capabilities strengthen its position against larger multinational competitors. However, the company operates in a highly competitive global market dominated by firms with broader product portfolios and greater R&D budgets. While Teikoku’s focus on niche applications reduces direct competition, it faces pressure from low-cost manufacturers in emerging markets. Its strong domestic presence in Japan provides stability, but international expansion remains challenging due to entrenched competitors. The company’s financial health—low debt (¥1.13 billion) and high cash reserves (¥14.3 billion)—supports R&D and strategic initiatives, but scaling globally will require partnerships or acquisitions to compete with industry leaders.