| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2510.28 | -17 |
| Intrinsic value (DCF) | 821.85 | -73 |
| Graham-Dodd Method | 2770.47 | -8 |
| Graham Formula | 1735.61 | -42 |
Pacific Industrial Co., Ltd. (7250.T) is a leading Japanese manufacturer specializing in automotive and electronic components, serving global markets. Established in 1930 and headquartered in Ogaki, Japan, the company produces a diverse range of products, including tire pressure monitoring systems (TPMS), precision stamping and molding parts for vehicle bodies, engine peripherals, and interior/exterior components. Its TPMS technology enhances vehicle safety by monitoring tire conditions in real time. The company also supplies tire valves, control devices, and electronic mechanical products like fishing reel controllers. With a strong presence in Japan and international markets, Pacific Industrial caters to automobile manufacturers, tire producers, and home electrical product makers. Its expertise in high-precision manufacturing and innovation in automotive electronics positions it as a key player in the consumer cyclical sector, particularly in auto parts.
Pacific Industrial Co., Ltd. presents a stable investment opportunity with a low beta (0.384), indicating lower volatility compared to the broader market. The company reported solid FY2025 revenue of ¥206.1 billion and net income of ¥13.2 billion, with a diluted EPS of ¥229.2. Its operating cash flow of ¥23.4 billion supports financial stability, though capital expenditures (-¥24.6 billion) suggest ongoing investments in production capabilities. The company maintains a healthy cash position (¥35.6 billion) but carries significant total debt (¥60.9 billion). A dividend of ¥52 per share reflects shareholder returns. Given its niche in automotive safety and precision components, Pacific Industrial is well-positioned in the auto parts sector, though exposure to cyclical demand and supply chain risks warrants caution.
Pacific Industrial Co., Ltd. competes in the highly specialized automotive parts sector, with a competitive edge in tire pressure monitoring systems (TPMS) and precision stamping/molding components. Its TPMS technology differentiates it by enhancing vehicle safety—a growing priority for automakers. The company’s long-standing relationships with Japanese and global automotive manufacturers provide stability, but it faces pricing pressure from lower-cost competitors in emerging markets. Its diversified product portfolio, spanning body parts, engine components, and electronic devices, mitigates reliance on any single segment. However, Pacific Industrial’s heavy debt load (¥60.9 billion) could constrain financial flexibility compared to peers. The company’s focus on R&D and high-precision manufacturing supports its reputation for quality, but it must navigate supply chain disruptions and fluctuating raw material costs. Competitors with larger scale or stronger balance sheets may have advantages in pricing and global distribution.