| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 135.35 | -32 |
| Intrinsic value (DCF) | 81.60 | -59 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 1786.58 | 802 |
Okaya Electric Industries Co., Ltd. (6926.T) is a Tokyo-based manufacturer specializing in electrical components and equipment, serving both domestic and international markets. Founded in 1939, the company produces a diverse range of products, including noise suppression capacitors, surge protective devices, LED displays, and sensors, which are integral to industries such as HVAC, communications, and consumer electronics. With a strong focus on innovation, Okaya Electric caters to high-demand applications in air conditioners, rapid chargers, security cameras, and LED lighting. The company operates in the competitive Technology sector, specifically within Hardware, Equipment & Parts, leveraging its decades of expertise to maintain a solid market presence. Okaya Electric’s commitment to quality and technological advancement positions it as a key player in Japan’s electronics manufacturing landscape.
Okaya Electric Industries presents a mixed investment profile. The company’s stable revenue (¥14.3 billion in FY 2024) and positive net income (¥121 million) indicate operational viability, supported by strong operating cash flow (¥2.1 billion). However, its high total debt (¥4.76 billion) relative to cash reserves (¥4.89 billion) raises liquidity concerns. The low beta (0.459) suggests lower volatility compared to the broader market, appealing to risk-averse investors. The dividend yield (¥8 per share) adds modest income appeal. Investors should weigh Okaya’s niche expertise in electrical components against its debt burden and the competitive pressures in the global electronics market.
Okaya Electric Industries competes in the highly fragmented electrical components sector, where differentiation hinges on technological specialization and cost efficiency. The company’s competitive advantage lies in its diversified product portfolio, particularly in noise suppression and surge protection, which are critical for industrial and consumer electronics. Its long-standing relationships with Japanese manufacturers provide a stable revenue base, though international expansion remains limited. Okaya’s R&D focus on LED and sensor technologies aligns with growing demand for energy-efficient solutions. However, it faces stiff competition from larger global players with superior scale and supply chain advantages. While Okaya’s debt levels are manageable, they constrain aggressive capital investments compared to cash-rich rivals. The company’s niche positioning shields it from direct competition with broad-line electronics firms, but reliance on the Japanese market exposes it to regional economic fluctuations.