| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 977.39 | 7 |
| Intrinsic value (DCF) | 163.24 | -82 |
| Graham-Dodd Method | 1034.92 | 13 |
| Graham Formula | 565.59 | -38 |
Shizuki Electric Company Inc. is a leading Japanese manufacturer specializing in capacitors and related electrical equipment, serving both domestic and international markets. Founded in 1939 and headquartered in Nishinomiya, Japan, the company produces a diverse range of products, including power factor correction systems, harmonic filters, voltage sag compensators, and capacitors for automotive inverters, power electronics, and home appliances. Operating in the Electrical Equipment & Parts sector under Industrials, Shizuki Electric plays a critical role in enhancing energy efficiency and power quality across industries. With a market capitalization of approximately ¥10.23 billion, the company maintains a strong presence in Japan while expanding globally. Its product portfolio caters to high-growth segments like automotive electrification and renewable energy infrastructure, positioning it as a key player in the evolving industrial electronics landscape.
Shizuki Electric presents a mixed investment profile. The company's low beta (0.47) suggests relative stability compared to broader markets, and its dividend yield (¥14 per share) may appeal to income-focused investors. However, concerning financial metrics include negative operating cash flow (-¥271.7 million) and significant capital expenditures (-¥1.6 billion), indicating potential liquidity constraints. While the company maintains a solid cash position (¥4.53 billion), its substantial debt (¥8.1 billion) warrants caution. The niche focus on capacitors provides specialization benefits, but investors should monitor the company's ability to improve profitability (net income of ¥182.1 million on ¥26.3 billion revenue) and cash generation amid competitive pressures in the electrical components sector.
Shizuki Electric competes in the specialized capacitor and electrical equipment market, where technological expertise and manufacturing precision are critical differentiators. The company's competitive advantage stems from its long-standing reputation (founded 1939) in Japan's exacting industrial market and its diversified capacitor applications spanning power correction, automotive, and consumer electronics. However, its relatively small scale (¥26.3 billion revenue) compared to global competitors may limit R&D spending and pricing power. Shizuki's focus on power quality solutions (harmonic filters, voltage compensators) provides niche differentiation, but it faces pressure from larger Asian capacitor manufacturers with broader product lines and stronger international distribution. The company's ¥8.1 billion debt load could constrain competitiveness against cash-rich rivals. Its positioning in automotive inverter capacitors aligns with EV growth trends, but requires sustained technological advancement to maintain relevance against specialized automotive electronics suppliers. While domestic relationships provide stable demand, international expansion remains challenging against entrenched competitors with global supply chains.