| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 835.33 | -12 |
| Intrinsic value (DCF) | 12913.38 | 1266 |
| Graham-Dodd Method | 868.60 | -8 |
| Graham Formula | 2477.94 | 162 |
Kokusai Co., Ltd. (7722.T) is a Japan-based industrial machinery company specializing in the manufacture and sale of precision testing and measurement equipment for motors and rotating machinery. Founded in 1969 and headquartered in Tama, Japan, Kokusai serves key industries such as automotive, home appliances, office equipment, and digital devices. The company’s product portfolio includes balancing machines, tire uniformity testers, motor testers, gear testers, and vibration testing systems, catering to high-precision quality control needs in manufacturing. With a strong domestic presence and international operations, Kokusai plays a critical role in industrial automation and quality assurance. Despite recent financial challenges, the company maintains a niche position in Japan’s industrial machinery sector, supported by its technological expertise in electromechanical testing solutions. Investors should note its exposure to cyclical manufacturing demand and competition from global industrial automation leaders.
Kokusai Co., Ltd. presents a mixed investment profile. The company operates in a specialized industrial niche with steady demand from automotive and electronics manufacturers, but its recent financial performance shows a net loss of ¥258 million (JPY) in FY 2024, alongside negative diluted EPS (-¥18.78). Positives include a solid operating cash flow of ¥1.34 billion and a strong cash position (¥5.23 billion), which may provide stability. However, high total debt (¥4.02 billion) and a low beta (0.015) suggest limited volatility but also muted growth potential. The dividend yield (¥30 per share) offers some income appeal, but investors should weigh this against sector competition and reliance on Japan’s manufacturing sector. A turnaround hinges on cost management and export growth.
Kokusai Co., Ltd. competes in the industrial testing equipment market with a focus on Japan and selective international markets. Its competitive advantage lies in specialized balancing and vibration testing systems, particularly for automotive applications, where precision and reliability are critical. However, the company faces intense competition from larger global players with broader R&D budgets and integrated automation solutions. Kokusai’s smaller scale limits its ability to compete on price or innovation speed, but its deep expertise in motor and rotating equipment testing provides differentiation. The company’s reliance on Japan’s automotive sector (a strength domestically) also exposes it to regional economic fluctuations. To strengthen its position, Kokusai could leverage partnerships or niche customization, though its financial constraints may hinder aggressive expansion. Competitors with stronger global distribution and digital integration (e.g., AI-driven predictive maintenance tools) pose a long-term threat.