| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3071.89 | -6 |
| Intrinsic value (DCF) | 77308.50 | 2257 |
| Graham-Dodd Method | 2048.54 | -38 |
| Graham Formula | 2718.09 | -17 |
Suido Kiko Kaisha, Ltd. (6403.T) is a leading Japanese water treatment company specializing in sewage and industrial wastewater solutions. Operating since 1936 and headquartered in Tokyo, the company provides a comprehensive range of water treatment equipment, including purifiers, controllers, valves, and measurement devices. Suido Kiko Kaisha also designs, constructs, and maintains water treatment plants, offering end-to-end solutions for municipal and industrial clients. As a subsidiary of Toray Industries, Inc., it benefits from strong technical expertise and financial backing. The company serves both domestic and international markets, positioning itself as a key player in Japan's water infrastructure sector. With increasing global focus on sustainable water management, Suido Kiko Kaisha is well-placed to capitalize on growing demand for efficient and environmentally friendly water treatment technologies.
Suido Kiko Kaisha presents a stable investment opportunity with moderate growth potential in Japan's essential water treatment sector. The company's low beta (0.13) suggests lower volatility compared to the broader market, appealing to conservative investors. While revenue stands at ¥21.6 billion, net income of ¥367 million indicates thin margins, possibly due to high operational costs in the capital-intensive water treatment industry. Negative operating cash flow (-¥2.05 billion) raises concerns about short-term liquidity, though ¥1.9 billion in cash reserves provides some buffer. The company pays a dividend (¥55 per share), offering yield appeal. Long-term prospects are tied to Japan's aging water infrastructure needs and global wastewater treatment demands, but investors should monitor cash flow improvements and margin expansion.
Suido Kiko Kaisha occupies a niche position in Japan's water treatment market, combining equipment manufacturing with full-service plant operations - a vertically integrated approach that differentiates it from pure-play competitors. Its affiliation with Toray Industries provides access to advanced materials science and filtration technologies. The company's strength lies in small-scale and specialized treatment solutions, particularly for rural communities and industrial applications where larger players may lack focus. However, its domestic orientation (despite some international operations) limits growth potential compared to global water treatment firms. Competitive pressures come from both large multinationals with broader technological portfolios and smaller local operators with cost advantages. Suido Kiko's R&D capabilities in measurement and control devices offer some proprietary advantages, but the sector's price sensitivity and long sales cycles challenge profitability. Its maintenance and operation services provide recurring revenue streams that help stabilize earnings amidst cyclical construction projects.