| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1647.66 | 62 |
| Intrinsic value (DCF) | 437.55 | -57 |
| Graham-Dodd Method | 1385.58 | 37 |
| Graham Formula | 3789.24 | 273 |
Japan Cash Machine Co., Ltd. (JCM) is a leading manufacturer of money-handling and amusement center machines, headquartered in Osaka, Japan. Founded in 1955, the company specializes in bill validator units, ATMs, automatic ticketing machines, fare adjustment machines, vending machines, depositing machines, and kiosk terminals under the JCM brand. Serving diverse markets including casinos, banking, transportation, retail, and amusement, JCM has established a strong presence both domestically and internationally. As part of the industrials sector, JCM plays a critical role in the business equipment and supplies industry, providing innovative solutions for cash handling and automation. With a market capitalization of approximately ¥25.3 billion, JCM continues to expand its product portfolio and technological capabilities to meet the evolving demands of global markets.
Japan Cash Machine Co., Ltd. presents a mixed investment profile. On the positive side, the company reported solid net income of ¥3.28 billion and an EPS of ¥112.59 for FY 2024, alongside a dividend payout of ¥40 per share, indicating profitability and shareholder returns. However, the negative operating cash flow of ¥4.93 billion raises concerns about liquidity and operational efficiency. The company's beta of 0.781 suggests lower volatility compared to the broader market, which may appeal to risk-averse investors. Key risks include high total debt of ¥11.09 billion and significant capital expenditures, which could strain financial flexibility. Investors should weigh JCM's established market position against these financial challenges.
Japan Cash Machine Co., Ltd. (JCM) operates in a niche but competitive segment of the business equipment and supplies industry. Its competitive advantage lies in its long-standing reputation, diversified product portfolio, and strong presence in both domestic and international markets, particularly in casino and gaming sectors. JCM's ability to provide specialized cash-handling solutions for various industries enhances its market positioning. However, the company faces competition from global players with larger R&D budgets and broader distribution networks. JCM's reliance on the Japanese market (though it operates internationally) could limit growth compared to competitors with more extensive global footprints. The company’s technological innovation in ATMs and kiosk terminals is a strength, but it must continuously invest in R&D to stay ahead of competitors offering more advanced digital payment solutions. Financial constraints, evidenced by negative operating cash flow, may hinder JCM's ability to compete aggressively in innovation and market expansion.