| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2317.97 | 63 |
| Intrinsic value (DCF) | 550.33 | -61 |
| Graham-Dodd Method | 3780.62 | 166 |
| Graham Formula | 901.98 | -37 |
Onoken Co., Ltd. (7414.T) is a leading Japanese steel fabrication and distribution company headquartered in Kitakyushu, Japan. Established in 1925, Onoken specializes in the sale, fabrication, and import/export of steel products, including steel plates, hot-rolled coils, H-beams, and construction materials. The company serves key industries such as shipbuilding, construction, and equipment manufacturing, positioning itself as a critical supplier in Japan's industrial supply chain. With a diversified product portfolio that includes expanded metals, wire rods, and versatile steel boards, Onoken plays a vital role in infrastructure and industrial development. The company's strong domestic presence and expertise in steel processing make it a reliable partner for fabrication and construction projects. Onoken's financial stability, reflected in its JPY 281.9 billion revenue (FY 2024), underscores its resilience in the cyclical steel industry.
Onoken Co., Ltd. presents a stable investment opportunity within Japan's steel fabrication sector, supported by consistent revenue streams and a diversified industrial customer base. The company's low beta (0.236) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, exposure to cyclical steel demand and high total debt (JPY 46.8 billion) relative to cash reserves (JPY 6.7 billion) pose risks. Positive net income (JPY 5.8 billion) and a dividend yield (~2.5% based on JPY 69/share) enhance its attractiveness, but investors should monitor raw material cost fluctuations and Japan's construction sector health.
Onoken Co., Ltd. competes in Japan's fragmented steel distribution and fabrication market, leveraging its long-standing relationships and localized supply chain. Its competitive advantage lies in product diversification (e.g., construction materials, specialty steel shapes) and vertical integration in fabrication services. However, the company faces stiff competition from larger steel trading houses with global networks and economies of scale. Onoken's regional focus limits international exposure but provides stability in domestic demand. The company's moderate market cap (JPY 35.1 billion) suggests it is a mid-tier player, lacking the pricing power of industry giants. Its strength in niche steel products (e.g., checker plates, deformed bars) helps differentiate from generic distributors, but reliance on Japan's industrial activity makes it vulnerable to macroeconomic downturns. Capital expenditures (JPY -18.3 billion) indicate ongoing investments in capacity, though debt levels could constrain growth compared to cash-rich peers.