| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2799.21 | -58 |
| Intrinsic value (DCF) | 9101.58 | 37 |
| Graham-Dodd Method | 3128.66 | -53 |
| Graham Formula | 6788.90 | 2 |
TOKYO KEIKI Inc. is a leading Japanese manufacturer of precision measuring instruments and control systems, serving diverse industries such as marine, aerospace, railway, and construction. Founded in 1896 and headquartered in Tokyo, the company specializes in marine systems, hydraulic equipment, flow meters, inertial sensors, and microwave devices. With a strong focus on innovation, TOKYO KEIKI provides critical solutions for maritime traffic management, printing inspection, and aerospace electronics. The company operates both domestically and internationally, leveraging its long-standing expertise in fluid power systems and RF components. As a key player in Japan's technology-driven hardware sector, TOKYO KEIKI supports infrastructure development and industrial automation with high-precision instruments. Its diversified product portfolio positions it as a reliable supplier for defense, transportation, and industrial applications.
TOKYO KEIKI presents a stable investment opportunity with a market cap of ¥52.9 billion and a low beta of 0.37, indicating lower volatility compared to the broader market. The company reported ¥47.2 billion in revenue and ¥2.3 billion in net income for FY 2024, with a diluted EPS of ¥138.66. However, negative operating cash flow (-¥2.8 billion) and high capital expenditures (-¥2.6 billion) raise concerns about short-term liquidity. The company maintains a modest dividend yield with ¥35 per share. Investors may find value in its niche market positioning and long-term contracts in defense and infrastructure sectors, but should monitor debt levels (¥14.8 billion) and cash flow improvements.
TOKYO KEIKI holds a competitive edge in specialized measuring instruments and control systems, particularly in marine and aerospace applications where precision and reliability are critical. Its long history (founded in 1896) provides brand trust and deep industry relationships, especially in Japan's defense and transportation sectors. The company's diversified product range mitigates sector-specific risks, though it faces challenges in scaling internationally against larger global players. Its focus on inertial sensors and maritime systems differentiates it from generalist competitors, but R&D spending may lag behind tech giants. TOKYO KEIKI's competitive advantage lies in customized solutions for Japanese industrial clients, though dependence on domestic markets (despite some international presence) could limit growth compared to multinational rivals. The negative operating cash flow suggests inefficiencies that competitors with stronger balance sheets might exploit.