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Stock Analysis & ValuationJANOME Corporation (6445.T)

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¥1,198.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1476.0323
Intrinsic value (DCF)444.61-63
Graham-Dodd Method1789.3949
Graham Formula765.52-36

Strategic Investment Analysis

Company Overview

JANOME Corporation (6445.T) is a leading Japanese manufacturer of sewing machines and related products, with a rich history dating back to 1921. Headquartered in Hachioji, Japan, the company operates in the consumer cyclical sector, specializing in household and industrial sewing machines, robotics (including SCARA and Cartesian robots), and 24-hour bath products. JANOME also distributes school education materials and maintains a retail presence with 79 sewing machine stores across Japan. The company rebranded from Janome Sewing Machine Co., Ltd. to JANOME Corporation in 2021, reflecting its diversified product portfolio beyond traditional sewing machines. With a market capitalization of approximately ¥20.98 billion, JANOME serves both domestic and international markets, leveraging its expertise in precision engineering and automation. The company’s industrial equipment division, including servo presses and robotics, positions it as a niche player in Japan’s manufacturing automation space. JANOME’s strong brand recognition in household sewing machines and its expansion into industrial applications make it a unique player in the furnishings, fixtures, and appliances industry.

Investment Summary

JANOME Corporation presents a mixed investment profile. On the positive side, the company maintains a stable revenue base (¥36.48 billion in FY 2024) with modest profitability (net income of ¥1.13 billion) and a healthy dividend yield (¥40 per share). Its strong cash position (¥7.51 billion) and manageable debt (¥3.88 billion) provide financial flexibility. However, the company operates in a mature market for household sewing machines, with limited growth prospects. Its expansion into industrial robotics and automation could offer upside but faces intense competition from larger global players. The stock’s beta of 1.013 suggests market-average volatility. Investors may find value in JANOME’s dividend stability and niche industrial segment, but growth-oriented investors might seek higher potential elsewhere.

Competitive Analysis

JANOME Corporation competes in two distinct markets: consumer sewing machines and industrial automation. In the household sewing machine segment, it faces competition from global brands like Brother Industries and Singer, as well as low-cost Asian manufacturers. JANOME’s competitive advantage lies in its strong brand reputation in Japan, direct retail presence (79 stores), and a legacy of precision engineering. However, the global sewing machine market is declining due to reduced demand in developed economies, pressuring margins. In industrial automation, JANOME’s servo presses and robotics (SCARA, Cartesian) compete with giants like Fanuc and Yaskawa Electric. Here, JANOME’s smaller scale limits its R&D budget and global distribution compared to these leaders, though it may carve out niches in specialized Japanese manufacturing applications. The company’s dual focus provides diversification but also dilutes its ability to dominate either market. Its competitive positioning is strongest domestically, where its brand and retail network provide a moat, but international growth remains challenging against entrenched competitors.

Major Competitors

  • Brother Industries, Ltd. (6448.T): Brother Industries is a global leader in sewing machines and office equipment, with a stronger international presence than JANOME. Its diversified product lineup (printers, label makers) provides revenue stability, but it faces stiff competition in sewing machines from Asian manufacturers. Brother’s scale gives it cost advantages over JANOME, but JANOME retains stronger brand loyalty in Japan’s household segment.
  • Fanuc Corporation (6954.T): Fanuc dominates industrial robotics globally, far surpassing JANOME’s niche offerings in servo presses and tabletop robots. Fanuc’s technological edge and vast R&D budget make it a formidable competitor in automation. JANOME cannot match Fanuc’s scale but may compete on customization for smaller Japanese manufacturers.
  • Yaskawa Electric Corporation (6506.T): Yaskawa is another Japanese industrial robotics giant, specializing in motion control and servo systems. Like Fanuc, it outscales JANOME in automation. JANOME’s robotics are limited to smaller applications, but Yaskawa’s global reach and advanced solutions overshadow JANOME’s capabilities in this segment.
  • SVP Worldwide (SVP.WA): SVP Worldwide owns the Singer, Husqvarna, and Pfaff sewing machine brands, competing directly with JANOME in consumer markets. SVP’s global distribution and iconic Singer brand give it an edge in international markets, but JANOME holds stronger domestic (Japanese) brand recognition and retail control.
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