| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1305.52 | -6 |
| Intrinsic value (DCF) | 553.20 | -60 |
| Graham-Dodd Method | 1242.59 | -11 |
| Graham Formula | 1368.63 | -2 |
The Furukawa Battery Co., Ltd. (6937.T) is a leading Japanese manufacturer of storage batteries, specializing in lead-acid and alkaline batteries for diverse applications, including automotive, industrial, and renewable energy sectors. Founded in 1905 and headquartered in Yokohama, Japan, the company operates as a subsidiary of Furukawa Electric Co., Ltd. Furukawa Battery serves both domestic and international markets, offering a broad product portfolio that includes power supply systems, converters, and battery testing equipment. The company plays a critical role in Japan's industrial and energy storage sectors, supporting infrastructure, transportation, and emergency power systems. With a strong legacy in battery technology, Furukawa Battery is positioned to benefit from growing demand for reliable energy storage solutions, particularly in electric vehicles (EVs) and renewable energy integration. Its diversified product line and technological expertise make it a key player in the global battery industry.
Furukawa Battery presents a stable investment opportunity with steady revenue growth (JPY 75.5 billion in FY 2024) and profitability (net income of JPY 2.57 billion). The company benefits from its strong market position in Japan and its diversified battery applications, including automotive and industrial sectors. However, investors should consider risks such as exposure to raw material price fluctuations (e.g., lead) and competition from lithium-ion battery manufacturers. The company's beta of 1.232 suggests moderate volatility relative to the market. Furukawa Battery's dividend yield (JPY 21 per share) and solid cash position (JPY 4.06 billion) provide some downside protection, but long-term growth may depend on its ability to innovate in emerging battery technologies.
Furukawa Battery holds a competitive advantage in lead-acid battery manufacturing, leveraging decades of expertise and a strong supply chain in Japan. Its subsidiary relationship with Furukawa Electric Co., Ltd. provides stability and potential synergies in R&D and distribution. The company's diversified product range—from automotive batteries to emergency power systems—helps mitigate sector-specific risks. However, Furukawa faces intensifying competition from lithium-ion battery producers, which dominate the EV and renewable energy storage markets. While Furukawa's alkaline and lead-acid batteries remain cost-effective for certain applications, the shift toward lithium-ion technology in high-growth sectors could pressure margins. The company's focus on niche markets (e.g., railway and aerospace batteries) provides some insulation, but its long-term competitiveness will hinge on adapting to technological shifts and expanding into higher-value segments.