| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4247.50 | 31 |
| Intrinsic value (DCF) | 1022.89 | -68 |
| Graham-Dodd Method | 6247.88 | 93 |
| Graham Formula | 6888.70 | 112 |
Yuken Kogyo Co., Ltd. (6393.T) is a leading Japanese manufacturer of hydraulic equipment and environmental machinery, with a strong presence in both domestic and international markets. Founded in 1929 and headquartered in Ayase, Japan, the company specializes in hydraulic pumps, motors, control valves, and systems for industrial and marine applications. Yuken Kogyo also offers innovative environmental solutions, including PET bottle compacting presses and garbage compactors, aligning with global sustainability trends. Operating in the Industrials sector, the company serves diverse industries requiring precision hydraulic systems, reinforcing its role as a critical supplier in industrial automation and machinery. With a market capitalization of approximately ¥10.2 billion, Yuken Kogyo combines decades of engineering expertise with a commitment to technological advancement, making it a key player in Japan's industrial machinery landscape.
Yuken Kogyo presents a stable investment opportunity with moderate growth potential, supported by its niche expertise in hydraulic systems and environmental machinery. The company's low beta (0.172) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, its modest net income (¥785.6 million) and high total debt (¥6.76 billion) relative to cash reserves (¥6.2 billion) raise concerns about financial leverage. The dividend yield is attractive, with a dividend per share of ¥300, but investors should monitor the company's ability to sustain payouts amid competitive pressures. Yuken Kogyo's focus on industrial and environmental applications positions it to benefit from automation and sustainability trends, though reliance on cyclical industries may limit upside.
Yuken Kogyo competes in the hydraulic equipment and environmental machinery markets, where differentiation hinges on technological innovation, reliability, and cost efficiency. The company's strengths lie in its diversified product portfolio, spanning hydraulic components (pumps, valves, motors) and systems for industrial and marine use. Its environmental machinery segment, including compactors, aligns with growing waste management demands. However, Yuken Kogyo faces intense competition from global hydraulic giants like Kawasaki Heavy Industries and Bosch Rexroth, which benefit from larger R&D budgets and broader distribution networks. Domestically, Yuken's smaller scale compared to peers like Nabtesco limits its pricing power. The company's competitive edge stems from its long-standing reputation in Japan and specialized hydraulic solutions, but it must invest in automation and sustainability to maintain relevance. Its financials indicate constrained profitability, suggesting a need for operational efficiency improvements to compete effectively against multinational rivals.