| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2330.76 | 6 |
| Intrinsic value (DCF) | 790.72 | -64 |
| Graham-Dodd Method | 1503.08 | -32 |
| Graham Formula | n/a |
Star Micronics Co., Ltd. (7718.T) is a leading Japanese manufacturer specializing in point-of-sale (POS) printers, machine tools, and precision products. Founded in 1947 and headquartered in Shizuoka, Japan, the company serves global markets with its diverse portfolio, including thermal, dot matrix, and hybrid printers, printer mechanisms, cash drawers, and CNC automatic lathes. Star Micronics is renowned for its innovation in POS solutions, catering to retail, hospitality, and financial sectors. The company also offers software development kits like StarXpand SDK for React Native, enhancing printer control and integration. With a strong emphasis on precision engineering and technological advancement, Star Micronics maintains a competitive edge in the industrial machinery sector. Its global footprint and diversified product line position it as a key player in the POS and machine tools industries.
Star Micronics presents a stable investment opportunity with its niche focus on POS printers and precision machine tools. The company's low beta (0.365) suggests lower volatility compared to the broader market, appealing to risk-averse investors. With a market cap of ¥52.99 billion and revenue of ¥64.99 billion, Star Micronics demonstrates steady financial performance. However, net income of ¥1.86 billion and diluted EPS of ¥53.78 indicate modest profitability. The company's strong cash position (¥23.62 billion) and manageable debt (¥2.07 billion) provide financial stability. A dividend per share of ¥60 offers income potential, but investors should monitor competitive pressures and global demand fluctuations in the POS and machine tools sectors.
Star Micronics competes in the highly specialized markets of POS printers and precision machine tools, where technological innovation and reliability are critical. The company's competitive advantage lies in its long-standing expertise, diversified product portfolio, and global distribution network. Its focus on thermal and dot matrix printers for retail and hospitality sectors differentiates it from broader industrial machinery players. However, the company faces intense competition from larger multinational corporations with greater R&D budgets and economies of scale. Star Micronics' ability to innovate, such as with its StarXpand SDK, helps maintain its market position. The company's precision machine tools segment also competes with specialized manufacturers, where quality and after-sales service are key differentiators. While Star Micronics has a solid reputation, it must continuously invest in R&D and expand its market reach to sustain growth amid rising competition.