Stock Analysis & Valuation Glory Ltd. (6457.T)

• Previous Close: ¥4,021.00
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, ¥	Upside, %
Artificial intelligence (AI)	5927.75	47
Intrinsic value (DCF)	1313.93	-67
Graham-Dodd Method	2665.21	-34
Graham Formula	2064.22	-49

Strategic Investment Analysis

Company Overview

Glory Ltd. (6457.T) is a leading Japanese manufacturer of cash handling machines and systems, serving financial, retail, transportation, and amusement industries globally. Founded in 1918 and headquartered in Himeji, Japan, the company specializes in teller cash recyclers, banknote and coin processing machines, self-service kiosks, and software solutions for cash management. Glory operates across multiple segments, including Financial, Retail & Transportation, Amusement, and Overseas Markets, providing end-to-end cash automation solutions. With a strong presence in Japan and expanding global operations, the company serves CIT (cash-in-transit), banking, gaming, and retail sectors. Glory’s product portfolio includes advanced cash recycling systems, payment stations, and digital menu boards, supported by proprietary software for business intelligence and device management. The company’s long-standing expertise in cash automation, combined with its focus on innovation, positions it as a key player in the industrial machinery sector. As cash handling remains critical in many industries despite digital payment trends, Glory continues to benefit from demand for secure, efficient cash management solutions.

Investment Summary

Glory Ltd. presents a stable investment opportunity with a strong niche in cash handling automation, supported by consistent revenue (¥372.5B in FY2024) and net income (¥29.7B). The company’s low beta (0.075) suggests resilience to market volatility, making it a defensive play in the industrials sector. However, reliance on cash-dependent industries poses a long-term risk as digital payments grow. Glory’s dividend yield (~2.1% based on ¥108/share) and solid operating cash flow (¥41.9B) provide income appeal, but high total debt (¥97.5B) relative to cash reserves (¥35.2B) warrants caution. Investors should monitor the company’s ability to expand in overseas markets and diversify into digital payment integration.

Competitive Analysis

Glory Ltd. holds a competitive advantage as a vertically integrated manufacturer of cash handling systems, with deep expertise in hardware and software solutions. Its strong brand reputation in Japan and partnerships with financial institutions provide a moat in its domestic market. The company’s focus on cash recyclers (e.g., UW-F series, WR-90/500) differentiates it from pure-play currency counting machine vendors. However, Glory faces intensifying competition from global players offering broader fintech solutions, including hybrid cash-digital systems. Its overseas growth is constrained by entrenched competitors like Diebold Nixdorf and Crane Holdings. While Glory’s R&D investments in automation (e.g., Ubiqular managed services) enhance efficiency, its slower pivot to cloud-based cash management compared to Western rivals could limit scalability. The company’s competitive positioning remains strongest in Asia, where cash usage persists, but it must accelerate innovation to counter digital payment disruption.

Major Competitors

• Diebold Nixdorf (DBD): Diebold Nixdorf is a global leader in ATM and retail self-service solutions, with a broader fintech portfolio than Glory. Its strength lies in integrated software platforms like Vynamic® and extensive service networks. However, the company has faced financial instability, including a 2023 bankruptcy restructuring, weakening its competitive edge against Glory’s stable balance sheet.
• Crane Holdings (CR): Crane’s Payment & Merchandising Technologies segment competes with Glory in cash handling and vending systems. Its Crane Currency division provides advanced banknote security features, but lacks Glory’s focus on recyclers. Crane’s diversified industrial portfolio reduces reliance on cash automation, unlike Glory’s specialized approach.
• G4S (now part of Allied Universal) (G4S.L): G4S’s cash solutions division (now under Allied Universal) competes in CIT and cash management services. While stronger in logistics, it lacks Glory’s manufacturing capabilities. Glory’s hardware-software integration gives it an advantage in end-to-end automation, though G4S has wider geographic reach.
• Iwatsu Electric (6727.T): A domestic competitor in Japan, Iwatsu focuses on compact cash handling machines for retail. It is smaller than Glory but competes aggressively in coin processing systems. Glory’s broader product range and international presence give it an edge, though Iwatsu is more agile in niche segments.
• NCR Corporation (NCR): NCR’s self-service banking and retail solutions overlap with Glory’s kiosks and recyclers. Its Aloha POS platform gives it strength in restaurant tech, but NCR’s 2023 spin-off of its ATM business (now ATLeisure) reduced its cash automation focus compared to Glory’s dedicated strategy.