| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2184.25 | 1 |
| Intrinsic value (DCF) | 5794.10 | 168 |
| Graham-Dodd Method | 1965.99 | -9 |
| Graham Formula | 2209.02 | 2 |
Torishima Pump Mfg. Co., Ltd. (6363.T) is a leading Japanese manufacturer of industrial pumps and mechanical seals, serving diverse sectors including water and wastewater, power generation, oil and gas, and desalination. Founded in 1919 and headquartered in Takatsuki, Japan, the company provides a comprehensive range of pumps—such as end-suction, double-suction, and multi-stage models—alongside engineering services, maintenance, and renewable energy solutions like wind and mini-hydropower systems. Torishima operates globally, with a strong presence in Asia and the Middle East, leveraging its expertise in hydraulic engineering and sustainable technologies. The company’s integrated offerings—from design and construction to after-sales support—position it as a critical player in infrastructure and industrial applications. With a focus on innovation and efficiency, Torishima caters to high-demand industries, ensuring long-term relevance in water management, energy, and industrial automation.
Torishima Pump Mfg. Co. presents a stable investment opportunity with its niche expertise in industrial pumps and renewable energy solutions. The company’s diversified revenue streams across water management, power, and oil & gas sectors mitigate cyclical risks. A low beta (0.475) suggests resilience to market volatility, while a net income of ¥6.23 billion (FY 2024) reflects steady profitability. However, modest operating cash flow (¥2.86 billion) and high capital expenditures (¥3.51 billion) indicate reinvestment needs, potentially limiting short-term liquidity. Dividend yield (~1.1% at ¥60/share) is conservative. Investors should weigh its established market position against slower growth in traditional industries and competition from global pump manufacturers.
Torishima’s competitive advantage lies in its specialized pump technology and integrated service model, which combines manufacturing, maintenance, and renewable energy solutions. Its focus on high-efficiency pumps for critical applications (e.g., desalination, power plants) differentiates it from generic competitors. The company’s strong regional presence in Asia and the Middle East provides localized support, a key edge in infrastructure projects. However, Torishima faces pressure from global giants like Grundfos and Flowserve, which boast broader geographic reach and R&D budgets. Its foray into wind and hydropower aligns with sustainability trends but remains a small segment. While Torishima’s debt-to-equity ratio (~0.28) is manageable, competitors with stronger balance sheets may outperform in large-scale bids. The firm’s reliance on industrial capex cycles also exposes it to macroeconomic downturns.