| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2229.77 | 315 |
| Intrinsic value (DCF) | 174.80 | -67 |
| Graham-Dodd Method | 283.30 | -47 |
| Graham Formula | n/a |
Juki Corporation (6440.T) is a leading Japanese manufacturer specializing in industrial and household sewing machines, as well as surface mount technology (SMT) systems. Founded in 1938 and headquartered in Tama, Japan, Juki serves global markets with its high-quality sewing solutions for apparel, sportswear, footwear, automotive interiors, and electronic circuit board fabrication. The company's product portfolio includes industrial sewing machines for heavy-duty applications, household sewing machines for personal and professional use, and advanced SMT systems for electronics manufacturing. Additionally, Juki offers innovative safety devices like the 'sleep buster' to prevent driver fatigue, along with maintenance services and parts sales. Operating in the Industrials sector, Juki plays a critical role in textile and electronics manufacturing supply chains, leveraging decades of engineering expertise to maintain its competitive edge. Despite recent financial challenges, the company remains a key player in industrial machinery, with a strong presence in Asia and international markets.
Juki Corporation presents a mixed investment profile. The company operates in niche markets with established demand for industrial sewing machines and SMT systems, supported by a long-standing reputation for quality. However, recent financials show a net loss of ¥3.24 billion and negative diluted EPS (-¥109), raising concerns about profitability. Positive operating cash flow (¥9.37 billion) suggests operational efficiency, but high total debt (¥81.63 billion) and modest cash reserves (¥13.17 billion) indicate financial strain. The company pays a modest dividend (¥20 per share), which may appeal to income-focused investors, but its low beta (0.195) suggests limited volatility correlation with broader markets. Investors should weigh Juki's strong industry positioning against its financial challenges and exposure to cyclical manufacturing demand.
Juki Corporation competes in two primary segments: industrial sewing machines and SMT systems. In industrial sewing, its competitive advantage lies in precision engineering, durability, and a broad product range catering to apparel, automotive, and footwear industries. The company's long history (since 1938) reinforces its brand trust, particularly in Asian markets. However, competition from lower-cost manufacturers in China and Southeast Asia pressures margins. In SMT systems, Juki faces stiff rivalry from global leaders like ASM Pacific Technology and Yamaha Motor, which have greater R&D budgets and broader distribution networks. Juki's dual focus on sewing and electronics manufacturing provides diversification but may dilute resource allocation compared to specialized competitors. The company’s maintenance services and parts business add recurring revenue streams, enhancing customer retention. Despite financial struggles, Juki’s technological expertise and established market presence position it as a resilient player, though it must address debt levels and profitability to sustain long-term competitiveness.