| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2841.43 | -6 |
| Intrinsic value (DCF) | 1101.09 | -63 |
| Graham-Dodd Method | 3250.69 | 8 |
| Graham Formula | 3702.50 | 23 |
Hokuriku Electric Industry Co., Ltd. is a leading Japanese manufacturer of electronic components, specializing in sensors, resistors, and circuit modules. Established in 1943 and headquartered in Toyama, Japan, the company serves diverse industries, including mobile communications, automotive electronics, and home electronics. Hokuriku Electric's product portfolio includes pressure sensors, DC/DC converters, piezoelectric speakers, and printed circuit boards, catering to high-demand applications in digital and industrial markets. With a strong presence in Japan and international markets, the company leverages its expertise in precision engineering to deliver reliable electronic solutions. As part of the Technology sector's Hardware, Equipment & Parts industry, Hokuriku Electric plays a crucial role in enabling advanced electronic systems. Investors and industry stakeholders recognize the company for its innovation and quality in electronic component manufacturing.
Hokuriku Electric Industry presents a stable investment opportunity with a low beta (0.348), indicating lower volatility compared to the broader market. The company reported solid financials for FY 2024, with revenue of ¥40.81 billion and net income of ¥2.54 billion, supported by strong operating cash flow of ¥4.52 billion. Its dividend yield is attractive, with a dividend per share of ¥80. However, investors should note the company's moderate debt levels (¥9.74 billion) and capital expenditures (¥698 million), which may impact future liquidity. Given its niche focus on electronic components, Hokuriku Electric benefits from steady demand in automotive and industrial applications, but competition and supply chain risks remain key considerations.
Hokuriku Electric Industry competes in the electronic components market by specializing in high-precision sensors and resistors, differentiating itself through reliability and technical expertise. The company's competitive advantage lies in its diversified product range, serving multiple high-growth sectors such as automotive electronics and IoT devices. However, it faces intense competition from larger global players with broader R&D budgets and economies of scale. Hokuriku Electric's domestic focus provides stability in the Japanese market but may limit its growth potential compared to multinational rivals. The company's ability to innovate in piezoelectric and sensor technologies strengthens its position, but pricing pressure from low-cost manufacturers could erode margins. Strategic partnerships and continued investment in automation could enhance its competitiveness in the long term.