| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3921.15 | 11 |
| Intrinsic value (DCF) | 2006.63 | -43 |
| Graham-Dodd Method | 4144.33 | 18 |
| Graham Formula | 7055.70 | 100 |
Shibuya Corporation (6340.T) is a leading Japanese manufacturer specializing in advanced packaging and mechatronics systems, serving diverse industries globally. Founded in 1931 and headquartered in Kanazawa, Japan, the company provides high-precision bottling, packaging, and automation solutions for sectors including beverages, cosmetics, pharmaceuticals, and semiconductors. Shibuya’s product portfolio includes bottling systems for mineral water, sake, and health drinks, as well as packaging machines for cartoning, sealing, and pouch filling. Additionally, the company offers cutting-edge regenerative medicine manufacturing systems, laser cutting machines, and medical equipment, positioning itself at the intersection of industrial automation and healthcare technology. With a strong presence in Japan and international markets, Shibuya Corporation leverages its engineering expertise to deliver innovative, high-efficiency solutions, making it a key player in the industrial machinery sector. Its diversified applications across food & beverage, pharmaceuticals, and electronics underscore its resilience and adaptability in a competitive global market.
Shibuya Corporation presents a stable investment opportunity with moderate growth potential, supported by its diversified industrial machinery portfolio and strong cash position (JPY 47.2 billion). The company’s low beta (0.523) suggests lower volatility relative to the market, appealing to risk-averse investors. However, its modest net income (JPY 9.78 billion on JPY 115.4 billion revenue) and capital expenditures (JPY -3.28 billion) indicate limited aggressive expansion. The dividend yield (~1.5% based on a JPY 105 per share payout) is conservative but sustainable. Risks include exposure to cyclical industrial demand and reliance on Japan’s manufacturing sector. Investors should weigh its steady cash flow against slower growth in traditional packaging markets versus opportunities in regenerative medicine and semiconductor systems.
Shibuya Corporation competes in the industrial machinery space with a niche focus on packaging and mechatronics systems. Its competitive advantage lies in its vertical integration and precision engineering, particularly in bottling and pharmaceutical packaging, where reliability and hygiene are critical. The company’s diversification into regenerative medicine and semiconductor equipment (e.g., high-accuracy bonders) provides growth avenues beyond traditional packaging. However, it faces stiff competition from global automation giants like Krones and Tetra Pak in beverage packaging, where scale and global distribution matter. Shibuya’s smaller size limits R&D spending compared to multinational peers, but its agility in customizing solutions for Japanese and Asian markets is a strength. Its JPY 46 billion debt is manageable (5.3% of market cap), but competitors with stronger balance sheets could outinvest in automation and IoT-enabled systems. The company’s focus on high-margin niches (e.g., medical lasers) helps offset lower margins in standard packaging machinery.