| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 630.75 | 78 |
| Graham Formula | 667.09 | 88 |
TATSUMI Corporation (7268.T) is a Japan-based precision automotive parts manufacturer specializing in critical components for vehicles and industrial machinery. A subsidiary of Mitsuba Corporation, the company produces electrical systems (wiper, power window, and sunroof motors), braking components (disc/drum brake parts, ABS/ESC systems), and transmission parts, serving Japan, the Americas, and Asia. Founded in 1951 and headquartered in Ashikaga, TATSUMI operates in the cyclical auto parts sector, leveraging its technical expertise to supply OEMs and aftermarkets. With a JPY 7.4B revenue (FY2024), the company focuses on high-precision manufacturing for reliability-driven automotive applications. Its integration within Mitsuba’s supply chain provides stability, while its diversified product portfolio mitigates reliance on single segments. TATSUMI’s niche in brake and motor systems positions it as a key player in Japan’s automotive ecosystem, though exposure to global supply chain risks and regional demand fluctuations remains a challenge.
TATSUMI Corporation presents a mixed investment profile. Its low beta (0.34) suggests relative stability compared to the broader market, and its JPY 173M net income (FY2024) reflects modest profitability in a competitive sector. However, the lack of dividends and high total debt (JPY 3.3B, nearly 1.5x market cap) raise liquidity concerns. Positive operating cash flow (JPY 424M) and disciplined CapEx (JPY -158M) indicate operational efficiency, but reliance on the cyclical auto industry and dependence on Mitsuba’s ecosystem limit upside. Investors may value its niche precision manufacturing capabilities, but broader sector headwinds (EV transition, supply chain costs) and leveraged balance sheet temper attractiveness. Suitable for risk-tolerant investors seeking indirect exposure to Japan’s automotive supply chain.
TATSUMI Corporation competes in the fragmented auto parts manufacturing sector, where scale and technological specialization are critical. Its competitive advantage lies in precision component manufacturing for braking and electrical systems, supported by Mitsuba’s vertical integration. This relationship ensures stable demand but also creates dependency risks. TATSUMI’s JPY 7.4B revenue is modest compared to global peers, limiting R&D and geographic diversification capabilities. The company’s focus on ICE (internal combustion engine) components, such as brake systems and transmission parts, exposes it to long-term obsolescence risks as EVs gain market share. However, its ABS/ESC and motor parts retain relevance in hybrid vehicles. Regional concentration (Japan-centric revenue) shields it from currency volatility but increases exposure to domestic auto production cycles. Competitors with global footprints or EV-focused portfolios (e.g., Denso, Aisin) outperform in innovation, while TATSUMI’s cost leadership in precision machining for legacy systems remains its differentiator. Its subsidiary status under Mitsuba provides supply chain stability but may restrict independent growth initiatives.