| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1143.96 | -2 |
| Intrinsic value (DCF) | 5149641.43 | 443071 |
| Graham-Dodd Method | 1381.51 | 19 |
| Graham Formula | 5665.17 | 388 |
Odawara Auto-Machine Mfg. Co., Ltd. (7314.T) is a Japanese industrial company specializing in the design, manufacture, and sale of fare collection equipment for buses and railways. Founded in 1950 and headquartered in Odawara, Japan, the company provides a comprehensive range of products including fare boxes, IC card systems, thermal ticket machines, LED indicators, and data management systems. Additionally, Odawara Auto-Machine offers system development, engineering, and software design services, catering to the evolving needs of public transportation operators. Operating in the Business Equipment & Supplies sector under Industrials, the company plays a critical role in modernizing fare collection and passenger information systems. With a market capitalization of approximately ¥3.22 billion, Odawara Auto-Machine serves both domestic and international markets, leveraging its expertise in transit automation solutions. The company’s diversified product portfolio and focus on innovation position it as a key player in Japan’s transportation infrastructure ecosystem.
Odawara Auto-Machine presents a niche investment opportunity in Japan’s transportation equipment sector, with a focus on fare collection systems. The company’s negative beta (-0.427) suggests low correlation with broader market movements, potentially offering defensive characteristics. However, investors should note the negative operating cash flow (-¥1.14 billion) despite positive net income (¥293 million), indicating potential working capital challenges. The company maintains a solid cash position (¥2.55 billion) but carries significant debt (¥3.72 billion). With a modest dividend yield (¥28 per share) and stable revenue (¥6.11 billion), Odawara Auto-Machine may appeal to value-oriented investors seeking exposure to Japan’s industrial niche markets. Risks include reliance on public transportation infrastructure spending and competitive pressures in fare system technology.
Odawara Auto-Machine competes in the specialized market of transit fare collection systems, where its long-standing presence (since 1950) and Japanese market expertise provide a competitive edge. The company’s integrated product portfolio—spanning hardware (fare boxes, ticket machines) and software (data management systems)—allows it to offer end-to-end solutions, differentiating it from pure hardware suppliers. Its focus on IC card systems aligns with Japan’s advanced cashless transit infrastructure. However, the company faces competition from larger multinational players with greater R&D resources for next-generation payment technologies (e.g., mobile fare systems). Odawara’s domestic focus (Japan headquarters) may limit international scalability compared to global competitors. The negative operating cash flow suggests potential inefficiencies in working capital management versus more streamlined peers. Its small market cap (¥3.22B) indicates it is a minor player compared to industrial conglomerates in adjacent markets. The company’s strength lies in deep domain knowledge of Japanese transit operators’ needs, but it must innovate to maintain relevance amid digital payment disruption.