| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1586.64 | 88 |
| Intrinsic value (DCF) | 227.72 | -73 |
| Graham-Dodd Method | 1359.35 | 61 |
| Graham Formula | n/a |
Taiho Kogyo Co., Ltd. (6470.T) is a Japanese manufacturer specializing in high-precision bearings and related automotive components. Founded in 1944 and headquartered in Toyota, Japan, the company produces engine bearings, bushings, thrust washers, and specialized bearings for applications in air conditioning compressors, turbochargers, and steering systems. Additionally, Taiho Kogyo offers aluminum die-cast products, plastic components, and precision dies for industrial use. Operating in the Auto - Parts sector, the company serves both domestic and international automotive markets, contributing to vehicle performance and efficiency. With a strong focus on engineering excellence, Taiho Kogyo plays a critical role in Japan's automotive supply chain, supporting major automakers with reliable, high-quality components. Despite recent financial challenges, the company maintains a solid reputation for innovation and precision manufacturing in the competitive auto parts industry.
Taiho Kogyo presents a mixed investment case. The company operates in a stable but highly competitive industry, with a market cap of ¥18.6 billion (JPY) and a low beta (0.633), indicating lower volatility relative to the market. However, FY 2025 financials reveal a net loss of ¥4.19 billion and negative EPS (-¥145.67), signaling operational challenges. Positive operating cash flow (¥6.25 billion) suggests some liquidity, but high capital expenditures (¥10.07 billion) and total debt (¥26.12 billion) raise concerns about financial flexibility. The modest dividend (¥20 per share) may appeal to income-focused investors, but profitability risks and industry competition warrant caution. Investors should monitor cost management and demand recovery in the automotive sector.
Taiho Kogyo competes in the precision automotive bearings market, where differentiation hinges on technological expertise, manufacturing efficiency, and customer relationships. The company’s strengths lie in its long-standing presence in Japan’s automotive hub (Toyota) and its specialization in niche bearing applications, such as turbochargers and EGR systems. However, its financial struggles (recent net losses) suggest inefficiencies or pricing pressures compared to larger global peers. The company’s focus on Japan may limit growth compared to multinational competitors, but it benefits from strong ties to domestic automakers. Its ability to invest in R&D and automation will be critical to maintaining competitiveness against low-cost producers and technologically advanced rivals. While Taiho Kogyo has a reputable brand in Japan, it lacks the scale of global leaders, making it vulnerable to supply chain disruptions and shifts in automotive demand.