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Stock Analysis & ValuationSuzuki Co.,Ltd. (6785.T)

Professional Stock Screener
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¥2,505.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)2535.631
Intrinsic value (DCF)4494.4779
Graham-Dodd Method1582.73-37
Graham Formula5281.00111

Strategic Investment Analysis

Company Overview

Suzuki Co., Ltd. (6785.T) is a Japanese precision manufacturing company specializing in connectors for automotive electronics and other high-precision components. Founded in 1933 and headquartered in Suzaka, Japan, the company operates in the Technology sector's Hardware, Equipment & Parts industry. Suzuki Co. produces a range of products, including precision press and mold dies, connector contacts and housings for automotive wire harnesses, semiconductor machines, customized machinery, and medical instrument assemblies. With a strong focus on automotive applications, the company serves Japan's robust automotive supply chain, benefiting from the country's leadership in vehicle manufacturing and electronics. Suzuki Co. maintains a solid financial position, supported by steady revenue growth and profitability, making it a key player in Japan's precision engineering and automotive components market.

Investment Summary

Suzuki Co., Ltd. presents a stable investment opportunity within Japan's automotive and precision engineering sectors. The company benefits from consistent demand for automotive connectors and precision components, supported by Japan's strong automotive industry. With a market capitalization of ¥24.5 billion, Suzuki Co. demonstrates financial resilience, reporting ¥27.7 billion in revenue and ¥2.3 billion in net income for the latest fiscal year. The company's low beta (0.555) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, reliance on Japan's domestic automotive sector could pose risks if the industry faces downturns. The dividend yield, supported by a ¥86 per share payout, adds income appeal. Investors should weigh Suzuki Co.'s steady cash flow and profitability against potential exposure to cyclical automotive demand.

Competitive Analysis

Suzuki Co., Ltd. competes in the niche market of automotive connectors and precision components, leveraging its long-standing expertise in Japanese manufacturing. The company's competitive advantage lies in its specialization in high-precision dies and connectors, which are critical for automotive electronics. Its proximity to Japan's automotive OEMs and suppliers strengthens its supply chain integration. However, Suzuki Co. faces competition from larger global players with broader product portfolios and greater R&D capabilities. The company's focus on Japan may limit its growth compared to multinational competitors, but it benefits from strong domestic relationships and quality reputation. Suzuki Co.'s financial stability, with ¥6 billion in cash and manageable debt (¥2.9 billion), provides a solid foundation for sustaining operations and investing in niche applications like medical instruments and semiconductor machinery. While not a market leader in scale, its precision engineering capabilities and automotive specialization offer resilience in its core market.

Major Competitors

  • TDK Corporation (6762.T): TDK is a global leader in electronic components, including connectors and sensors, with a much broader product range than Suzuki Co. Its strong R&D and international presence give it an edge in innovation, but Suzuki Co. competes effectively in specialized automotive applications with localized Japanese manufacturing.
  • Sharp Corporation (6753.T): Sharp produces a wide array of electronic components, including automotive parts, but its focus is more diversified (e.g., displays, IoT). Suzuki Co. has deeper specialization in precision connectors, though Sharp's larger scale provides cost advantages in some overlapping segments.
  • Tokyo Electron Limited (8035.T): Tokyo Electron dominates semiconductor manufacturing equipment, a segment Suzuki Co. serves on a smaller scale. While Tokyo Electron has superior tech in semiconductors, Suzuki Co. retains an advantage in automotive-specific precision components and dies.
  • Mitsubishi Heavy Industries, Ltd. (7011.T): Mitsubishi Heavy is a conglomerate with a vast industrial footprint, including automotive and machinery divisions. Suzuki Co. competes indirectly in precision components but lacks Mitsubishi's diversified revenue streams and global reach.
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