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Japan Material Co Ltd
TSE:6055

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Japan Material Co Ltd
TSE:6055
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Price: 1 872 JPY 3.2% Market Closed
Market Cap: ¥196.8B

EV/OCF

11.8
Current
41%
Cheaper
vs 3-y average of 20.1

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
11.8
=
Enterprise Value
¥199B
/
Operating Cash Flow
¥14.7B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
11.8
=
Enterprise Value
¥199B
/
Operating Cash Flow
¥14.7B

Valuation Scenarios

Japan Material Co Ltd is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (20.1), the stock would be worth ¥3 186.92 (70% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-4%
Maximum Upside
+76%
Average Upside
43%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 11.8 ¥1 872
0%
3-Year Average 20.1 ¥3 186.92
+70%
5-Year Average 20.8 ¥3 300.22
+76%
Industry Average 15.4 ¥2 439.92
+30%
Country Average 11.4 ¥1 806.41
-4%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
JP
Japan Material Co Ltd
TSE:6055
192.4B JPY 11.8 19.1
NL
ASML Holding NV
AEX:ASML
467.4B EUR 33 45.8
US
Lam Research Corp
NASDAQ:LRCX
324.5B USD 46.5 48.4
US
Applied Materials Inc
NASDAQ:AMAT
321.3B USD 36.6 41
US
KLA Corp
NASDAQ:KLAC
249.2B USD 52.3 54.7
US
Brooks Automation Inc
LSE:0HQ1
224.1B USD 3 585.3 -3 874
JP
Advantest Corp
TSE:6857
22.9T JPY 67.5 79.3
JP
Tokyo Electron Ltd
TSE:8035
21.6T JPY 42.3 42.9
US
Teradyne Inc
NASDAQ:TER
62.7B USD 92.8 113.2
JP
Disco Corp
TSE:6146
8.2T JPY 59.6 60.8
CN
NAURA Technology Group Co Ltd
SZSE:002371
342.5B CNY 159.3 62

Market Distribution

In line with most companies in Japan
Percentile
52nd
Based on 4 586 companies
52nd percentile
11.8
Low
0 — 8.2
Typical Range
8.2 — 16.2
High
16.2 —
Distribution Statistics
Japan
Min 0
30th Percentile 8.2
Median 11.4
70th Percentile 16.2
Max 277 515 327.6

Japan Material Co Ltd
Glance View

Market Cap
196.8B JPY
Industry
Semiconductors

Japan Material Co., Ltd. is an intriguing player in the technological landscape, operating at the intersection of industrial innovation and material sciences. The company has carved a niche in providing high-purity gas and chemical supply systems, primarily to the semiconductor and flat panel display industries. This niche is both lucrative and strategically vital, as these sectors demand precision and reliability, qualities Japan Material has honed over years of expertise. Their business model thrives on the complexity and critical nature of these systems, ensuring a constant demand from manufacturers who require unerring quality to maintain their own competitive edges. By supplying the essential infrastructural backbone to these high-tech industries, Japan Material effectively positions itself as a crucial enabler of modern technology. As the technological landscape evolves, Japan Material weaves its way into the industry's fabric by deploying their considerable expertise in engineering and maintenance services, further bolstering their revenue streams. Their commitment does not end at installation; it extends through continuous support and operational maintenance, ensuring that their systems function with maximum efficiency. This end-to-end service offering not only secures ongoing business but also fortifies long-term customer relationships, establishing the company as a trusted partner rather than just a supplier. Through such strategic foresight, Japan Material Co., Ltd. remains a key figure in the advancement of semiconductor and display technologies, driving both its innovation and its growth in parallel with the burgeoning demands of the global tech market.

Intrinsic Value
2 029.19 JPY
Undervaluation 8%
Intrinsic Value
Price ¥1 872
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