| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 6945.78 | 90 |
| Intrinsic value (DCF) | 2207.94 | -40 |
| Graham-Dodd Method | 14971.19 | 310 |
| Graham Formula | 7056.89 | 93 |
Ogura Clutch Co., Ltd. (6408.T) is a Japan-based industrial machinery company specializing in the manufacturing and sale of clutches and brakes for office automation equipment, automotive race cars, and general industrial applications. Founded in 1938 and headquartered in Kiryu, Japan, the company serves both domestic and international markets with a diverse product portfolio, including clutch brakes for machine tools, construction machinery, automotive A/C clutches, superchargers, and disaster prevention systems. Ogura Clutch is known for its precision engineering and reliability in high-performance applications, particularly in the automotive and industrial sectors. Despite recent financial challenges, the company maintains a strong niche presence in specialized mechanical components. With a market capitalization of approximately ¥5.1 billion, Ogura Clutch operates in the competitive industrial machinery sector, leveraging decades of expertise in clutch and brake technology.
Ogura Clutch presents a mixed investment profile. The company operates in a specialized niche with established expertise in industrial and automotive clutches, which provides some resilience. However, its recent financial performance raises concerns, with a net loss of ¥598 million in FY 2024 and negative diluted EPS (-¥399.73). The company’s low beta (0.098) suggests minimal correlation with broader market movements, which could appeal to risk-averse investors. Positive operating cash flow (¥2.93 billion) and a modest dividend (¥50 per share) offer some stability, but high total debt (¥20.52 billion) relative to cash reserves (¥8.67 billion) poses liquidity risks. Investors should weigh Ogura’s niche market positioning against its financial challenges before considering exposure.
Ogura Clutch competes in the industrial machinery sector with a focus on high-precision clutch and brake systems. Its competitive advantage lies in its long-standing reputation for reliability in demanding applications, particularly in automotive racing and industrial automation. The company’s diversified product range—spanning office equipment, construction machinery, and automotive components—provides some insulation against sector-specific downturns. However, Ogura faces intense competition from larger global players with greater R&D budgets and economies of scale. Its financial struggles (negative net income) may limit its ability to invest in next-generation technologies, putting it at a disadvantage against more capitalized rivals. Additionally, the company’s heavy reliance on the Japanese market (despite some international presence) exposes it to regional economic fluctuations. While Ogura’s specialized expertise offers differentiation, its competitive positioning is hampered by financial constraints and the need to modernize its product offerings to keep pace with industry advancements in electrification and automation.