| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1466.92 | 24 |
| Intrinsic value (DCF) | 382.92 | -68 |
| Graham-Dodd Method | 890.75 | -25 |
| Graham Formula | 101.21 | -91 |
Sumida Corporation (6817.T) is a leading Japanese manufacturer of electronic components and modules, serving diverse industries such as consumer electronics, automotive, and industrial applications. Headquartered in Tokyo and founded in 1956, Sumida specializes in power and signal magnetics, sensors, actuators, and automotive modules, including inductors, transformers, and wireless power transfer coils. The company operates globally, with a strong presence in Asia, Europe, and the Americas. Sumida's product portfolio includes high-performance components for digital amplifiers, switching power supplies, RF communication, and medical equipment, positioning it as a critical supplier in the electronics value chain. With a focus on innovation and reliability, Sumida supports next-generation technologies in automotive electrification, IoT, and energy-efficient solutions. The company's expertise in passive electronic components and modular systems makes it a key player in the rapidly evolving hardware and equipment sector.
Sumida Corporation presents a mixed investment profile. With a market cap of ¥31.57 billion and a beta of 0.92, it exhibits moderate volatility relative to the broader market. Revenue stands at ¥143.98 billion, but net income is relatively low at ¥590 million, reflecting thin margins in the competitive electronic components industry. The company generates positive operating cash flow (¥14.93 billion), though capital expenditures (¥-7.86 billion) suggest ongoing reinvestment needs. High total debt (¥57.98 billion) and limited cash reserves (¥4.29 billion) raise liquidity concerns. However, Sumida’s diversified customer base and exposure to growth sectors like automotive electrification and industrial IoT provide long-term potential. Investors should weigh its established market position against margin pressures and debt levels.
Sumida Corporation competes in the highly fragmented electronic components market, where differentiation hinges on technological expertise, cost efficiency, and supply chain reliability. The company’s strengths lie in its diversified product portfolio, spanning inductors, transformers, and automotive modules, which cater to high-growth applications like electric vehicles and wireless power. Its long-standing relationships with global manufacturers provide stable demand, though pricing pressure from low-cost Asian competitors remains a challenge. Sumida’s focus on R&D allows it to maintain relevance in advanced applications, but its profitability lags behind larger rivals with greater economies of scale. The company’s debt-heavy balance sheet could constrain its ability to invest in next-generation technologies, putting it at a disadvantage against better-capitalized peers. However, its specialization in niche segments, such as medical equipment components, offers some insulation from broader competitive pressures. To sustain growth, Sumida must enhance operational efficiency and expand its footprint in high-margin automotive and industrial markets.