| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1261.14 | -3 |
| Intrinsic value (DCF) | 358.52 | -72 |
| Graham-Dodd Method | 2450.15 | 88 |
| Graham Formula | n/a |
Sawafuji Electric Co., Ltd. (6901.T) is a Japanese manufacturer specializing in electronic components for trucks, buses, and portable equipment, as well as portable refrigerators. Headquartered in Ota, Japan, the company operates in the Auto - Parts sector under the Consumer Cyclical industry. Sawafuji Electric offers a diverse product portfolio, including automotive electrical equipment like starters, alternators, hybrid (HV) motors, and control devices, alongside portable refrigerators under the ENGEL brand and generators under the Elemax brand. With a history dating back to 1908, the company exports its products to approximately 100 countries, demonstrating a global footprint. Sawafuji Electric also engages in transportation and freightage businesses, adding diversification to its revenue streams. The company’s focus on automotive electrification and portable power solutions positions it strategically in evolving markets, including hybrid and electric vehicle components. With a market capitalization of ¥3.91 billion, Sawafuji Electric remains a niche player with specialized expertise in automotive and portable power applications.
Sawafuji Electric presents a mixed investment profile. The company operates in a competitive niche within the auto parts and portable power sectors, with a modest market cap of ¥3.91 billion. Its beta of 0.595 suggests lower volatility compared to the broader market, which may appeal to risk-averse investors. However, the company’s financials indicate thin margins, with net income of ¥517 million on ¥26.74 billion in revenue, reflecting operational challenges. While its dividend yield (¥32 per share) provides some income appeal, high total debt (¥3.8 billion) relative to cash reserves (¥1.58 billion) raises liquidity concerns. Investors should weigh Sawafuji’s specialization in hybrid vehicle components and portable refrigeration against its limited scale and financial leverage. The company’s exposure to Japan’s automotive supply chain could benefit from regional manufacturing trends, but global competition remains a risk.
Sawafuji Electric competes in specialized segments of the auto parts and portable power markets. Its competitive advantage lies in its long-standing expertise in automotive electrical components, particularly for commercial vehicles (trucks and buses), and its ENGEL and Elemax branded products. The company’s focus on hybrid (HV) motors and battery packs aligns with growing demand for electrification in transportation. However, Sawafuji’s small scale limits its ability to compete with larger global suppliers in pricing and R&D investment. Unlike multinational competitors, Sawafuji’s operations are heavily concentrated in Japan, exposing it to domestic economic fluctuations. Its portable refrigeration and generator businesses face competition from both specialized manufacturers and broader consumer electronics firms. While the company’s diversified product range mitigates some sector-specific risks, its lack of a dominant market position in any single category makes it vulnerable to pricing pressures and supply chain disruptions. Sawafuji’s export-driven model (shipping to ~100 countries) provides geographic diversification but also introduces currency and logistics risks. The company’s competitive positioning hinges on its ability to maintain technological relevance in hybrid components while optimizing costs in its portable equipment divisions.