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Stock Analysis & ValuationOIZUMI Corporation (6428.T)

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Previous Close
¥339.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)331.24-2
Intrinsic value (DCF)167.66-51
Graham-Dodd Method603.3478
Graham Formula26.18-92

Strategic Investment Analysis

Company Overview

OIZUMI Corporation is a leading Japanese manufacturer specializing in gaming machines and related equipment, primarily catering to the domestic market. Headquartered in Atsugi, Japan, the company was founded in 1974 and operates in the Electronic Gaming & Multimedia sector under the broader Technology industry. OIZUMI's product portfolio includes Pachislot machines, peripheral equipment, WICA series products, eco equipment, and medal supply collect products. Additionally, the company engages in real estate leasing and management, diversifying its revenue streams. With a market capitalization of approximately ¥7.09 billion, OIZUMI plays a significant role in Japan's gaming industry, which is known for its unique blend of entertainment and technology. The company's focus on innovation and compliance with Japan's strict gaming regulations positions it as a key player in the niche market of Pachislot and gaming peripherals.

Investment Summary

OIZUMI Corporation presents a mixed investment profile. On the positive side, the company operates in a niche market with relatively stable demand in Japan, supported by a ¥21.39 billion revenue and a net income of ¥528.95 million. The company also maintains a strong cash position of ¥8 billion, which provides financial flexibility. However, the high total debt of ¥17.64 billion raises concerns about leverage, and the modest operating cash flow of ¥90.24 million may limit growth initiatives. The beta of 0.498 suggests lower volatility compared to the broader market, which could appeal to risk-averse investors. The dividend yield, with a dividend per share of ¥12, adds some income appeal. Investors should weigh the company's stable niche market position against its financial leverage and limited growth prospects.

Competitive Analysis

OIZUMI Corporation competes in Japan's highly regulated gaming machine market, where it differentiates itself through specialized products like Pachislot machines and WICA series offerings. The company's competitive advantage lies in its deep understanding of local regulations and customer preferences, which are critical in Japan's unique gaming landscape. However, OIZUMI faces intense competition from larger domestic and international players with greater financial resources and broader product portfolios. The company's focus on peripheral equipment and real estate leasing provides some diversification but may not be sufficient to offset competitive pressures in the core gaming segment. OIZUMI's relatively small scale compared to global gaming giants limits its ability to invest heavily in R&D or expand internationally. The company's strength lies in its established domestic presence and compliance expertise, but its long-term competitiveness may be challenged by shifting consumer preferences and regulatory changes in Japan's gaming industry.

Major Competitors

  • Hoshizaki Corporation (6465.T): Hoshizaki is a major player in Japan's commercial equipment sector, including gaming-related refrigeration units. While not a direct competitor in gaming machines, its broader product range and stronger financial position (higher revenue and market cap) give it an edge in related peripherals. Hoshizaki's international presence also contrasts with OIZUMI's domestic focus.
  • DTS Corporation (9682.T): DTS operates in IT and gaming solutions, overlapping with OIZUMI in some gaming peripherals. DTS has a more diversified tech portfolio and stronger financials, but OIZUMI's specialized focus on Pachislot machines gives it an advantage in that niche segment. DTS's broader IT services could pose a long-term threat as gaming becomes more digitized.
  • GungHo Online Entertainment (3765.T): GungHo is a leader in digital gaming and mobile platforms, representing a shift away from traditional gaming machines. While operating in different segments, GungHo's success in digital gaming highlights the potential disruption to OIZUMI's traditional machine business. GungHo's stronger growth prospects and digital expertise contrast with OIZUMI's physical machine focus.
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