| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3971.85 | -26 |
| Intrinsic value (DCF) | 1754.31 | -67 |
| Graham-Dodd Method | 3911.52 | -27 |
| Graham Formula | 2849.01 | -47 |
Makita Corporation (6586.T) is a leading global manufacturer of electric power tools, pneumatic tools, and gardening and household equipment, headquartered in Anjo, Japan. Founded in 1915, Makita operates across key markets including Japan, Europe, North America, Asia, and other regions, offering a diverse product portfolio under its Makita brand. The company specializes in cordless tools, drilling/fastening equipment, sawing and grinding tools, outdoor power equipment, and accessories, catering to both professional and consumer markets. As a key player in the industrial tools sector, Makita is known for its innovation in battery-powered tools and commitment to sustainability. With a strong distribution network and brand recognition, Makita competes in the highly competitive global power tools industry, serving construction, manufacturing, and DIY segments. The company's financial stability and R&D focus position it as a resilient contender in the Industrials sector.
Makita Corporation presents a stable investment opportunity with its strong brand reputation, global market presence, and consistent financial performance. The company's revenue of ¥753.13 billion (FY 2025) and net income of ¥79.34 billion reflect steady profitability, supported by a healthy operating cash flow of ¥129.87 billion. Makita's low beta (0.739) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, competition from larger players like Stanley Black & Decker and Techtronic Industries poses challenges. Makita's dividend yield (~0.7%) is modest, but its strong cash position (¥253.28 billion) and manageable debt (¥10.15 billion) provide financial flexibility. Investors should monitor the company's ability to innovate in cordless technology and expand in emerging markets to sustain growth.
Makita Corporation holds a strong position in the global power tools market, competing primarily on product quality, innovation, and brand loyalty. The company's competitive advantage lies in its extensive R&D focus, particularly in lithium-ion battery technology, which has strengthened its cordless tool segment. Makita's vertically integrated manufacturing allows for cost control and quality assurance, differentiating it from competitors reliant on outsourcing. However, the company faces intense competition from larger rivals like Stanley Black & Decker (SWK) and Techtronic Industries (TTI), which have greater scale and broader product portfolios. Makita's regional strength in Japan and Europe provides stability, but its North American market share lags behind market leaders. The company's niche in professional-grade tools gives it an edge in durability and performance, though it must continuously innovate to counter cheaper alternatives from emerging-market manufacturers. Makita's financial health and conservative debt profile provide resilience, but its growth depends on expanding in high-demand regions and maintaining technological leadership in sustainable tool solutions.