| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2254.92 | -7 |
| Intrinsic value (DCF) | 531.21 | -78 |
| Graham-Dodd Method | 2609.54 | 7 |
| Graham Formula | 976.45 | -60 |
Enomoto Co., Ltd. is a Japanese precision manufacturing company specializing in LED lead frames and semiconductor components. Founded in 1962 and headquartered in Uenohara, Japan, the company designs, develops, and manufactures high-precision lead frames for ICs, transistors, LEDs, and other electronic parts. Additionally, Enomoto produces pressed parts for connectors, molded products, and precision automotive components. Operating in the Technology sector under Hardware, Equipment & Parts, Enomoto serves both domestic and international markets. With a market capitalization of approximately ¥8.9 billion, the company plays a critical role in the semiconductor supply chain, supporting advancements in electronics and automotive automation. Enomoto’s expertise in precision engineering and its diversified product portfolio position it as a key player in Japan’s industrial manufacturing landscape.
Enomoto Co., Ltd. presents a niche investment opportunity in the semiconductor components sector, with stable revenue of ¥25.2 billion and net income of ¥121 million in FY 2024. The company maintains a conservative financial profile, with ¥5 billion in cash and equivalents and moderate debt of ¥3.1 billion. However, its diluted EPS of ¥18.11 and dividend yield (based on a ¥71 per share dividend) may appeal to income-focused investors. The low beta (0.781) suggests lower volatility compared to the broader market, but growth prospects may be limited by its specialized focus and competitive industry. Investors should weigh its steady cash flow (¥3.1 billion operating cash flow) against capital expenditures (¥1.96 billion) and global semiconductor demand cycles.
Enomoto Co., Ltd. competes in the precision lead frame and semiconductor components market, leveraging its long-standing expertise in Japanese manufacturing. Its competitive advantage lies in its specialized product lineup, including LED lead frames and automotive precision parts, which cater to high-demand niches. However, the company faces intense competition from larger global players with broader R&D capabilities and economies of scale. Enomoto’s domestic focus (Japan) may limit its growth compared to multinational competitors, but its strong cash position and low debt provide stability. The company’s ability to maintain profitability in a cyclical industry reflects operational efficiency, but reliance on semiconductor industry trends poses risks. Its competitive positioning is further challenged by rapid technological advancements in semiconductor packaging, where larger rivals may outpace innovation.