| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2804.36 | -22 |
| Intrinsic value (DCF) | 1196.71 | -67 |
| Graham-Dodd Method | 5129.19 | 42 |
| Graham Formula | 3216.31 | -11 |
Eiken Industries Co., Ltd. (7265.T) is a Japanese industrial company specializing in the manufacturing and sale of filtration products for internal combustion engines and industrial applications. Headquartered in Omaezaki, Japan, the company produces a diverse range of filters, including oil, air, fuel, air conditioner, and cabin filters, catering primarily to the domestic market. Additionally, Eiken Industries supplies kitchen equipment parts, burners (Bunsen, infrared, ceramic, and blast), and precision press molds, jigs, and press parts. Founded in 1967 and formerly known as Ehken Kogyo Corporation, the company rebranded in 1972. Operating in the Pollution & Treatment Controls industry under the Industrials sector, Eiken Industries plays a critical role in enhancing engine efficiency and industrial safety through its high-quality filtration solutions. With a market capitalization of approximately ¥3.52 billion, the company maintains a stable financial position, supported by consistent revenue streams and a strong domestic presence.
Eiken Industries presents a niche investment opportunity within Japan's industrial filtration market. The company's stable revenue (¥7.28 billion in FY 2024) and modest net income (¥217.8 million) reflect its steady but low-growth profile. Its low beta (0.137) suggests minimal volatility, appealing to conservative investors. However, the company's heavy reliance on the Japanese market and limited international exposure may constrain growth potential. Positive aspects include a healthy cash position (¥1.49 billion) and manageable debt (¥474.3 million), alongside a dividend yield supported by a ¥110 per share payout. Investors should weigh its defensive positioning against limited scalability and competitive pressures in the industrial components sector.
Eiken Industries competes in the specialized industrial filtration market, where its primary advantage lies in its deep-rooted domestic presence and diversified product portfolio. The company's focus on engine and industrial filters positions it as a reliable supplier for Japan's automotive and manufacturing sectors. However, its competitive edge is tempered by its small scale compared to global filtration leaders, limiting R&D and distribution capabilities. Eiken's strength in precision press molds and burners adds niche diversification but does not significantly offset its reliance on the stagnant domestic industrial market. The company's low beta indicates resilience to market fluctuations, yet its lack of technological differentiation or international expansion strategy leaves it vulnerable to larger competitors with broader geographic and product reach. Its financial stability (positive operating cash flow of ¥464.7 million) provides a buffer, but long-term growth depends on capturing higher-margin opportunities or expanding beyond Japan.