Araya Industrial Co Ltd
TSE:7305
Intrinsic Value
Araya Industrial Co., Ltd. engages in manufacture and sale of steel pipes, precision parts for office automation (OA) equipment, and bicycle rims. [ Read More ]
The intrinsic value of one
Araya Industrial Co Ltd
stock under the Base Case scenario is
8 112.8
JPY.
Compared to the current market price of 3 785 JPY,
Araya Industrial Co Ltd
is
Undervalued by 53%.
Araya Industrial Co Ltd could be a value trap.A value trap occurs when a stock looks inexpensive based on fundamental analysis but fails to reach its intrinsic valuation over time, often due to underlying issues not reflected in quantitative data.
Scrutinize beyond numbers; assess long-term potential.
Araya Industrial Co Ltd's market capitalization is 21.1B JPY.
Araya Industrial Co Ltd stock price is 3 785 JPY.
Araya Industrial Co Ltd stock price (3785 JPY) is 53% less than its Intrinsic Value (8 112.8 JPY).
Araya Industrial Co Ltd stock price (3785 JPY) is 71% less than its DCF Value (13 239.73 JPY). Open DCF Valuation
Araya Industrial Co Ltd stock (2 985.87 JPY) is 21% less than its price (3785 JPY). Open Relative Valuation
Araya Industrial Co Ltd.
Araya Industrial Co Ltd's Revenue has dropped by 2% over the past 12 months.
Araya Industrial Co Ltd's ROE (Return on Equity) has increased in the last 3 years from 5% to 6%.
Araya Industrial Co Ltd's ROIC (Return on Invested Capital) has increased in the last 3 years from 2% to 5%.
Araya Industrial Co Ltd has positive Free Cash Flow for the last twelve months.
Araya Industrial Co Ltd's ROE (Return on Equity) for the past 12 months is positive and is equal to 6%.
Araya Industrial Co Ltd has positive Operating Income for the last twelve months.
Araya Industrial Co Ltd has positive three-year average ROE (Return on Equity): 8%. The company is efficient at transforming stockholders' equity into net income.
Araya Industrial Co Ltd's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 5%.
Araya Industrial Co Ltd's Revenue has been growing by 7% per year for the last 3 years.
Araya Industrial Co Ltd has positive Net Income for the last twelve months.
Araya Industrial Co Ltd has positive Gross Profit for the last twelve months.
Araya Industrial Co Ltd has positive three-year average ROIC (Return on Invested Capital): 6%. The company is efficient at using invested capital to generate operating income.
Araya Industrial Co Ltd's Altman Z-Score is equal to 2.19.
Araya Industrial Co Ltd has negative Net Debt. This means that the company has more cash and short-term investments (9B JPY) than debt (6B JPY).
Araya Industrial Co Ltd's short-term assets (34B JPY) exceed its short-term liabilties (17B JPY).
Araya Industrial Co Ltd's long-term assets (56B JPY) exceed its long-term liabilties (23B JPY).
Araya Industrial Co Ltd's D/E (Debt to Equity) is very low and is equal to 0.17.
Araya Industrial Co Ltd earns more than enough operating income (2B JPY) to safely cover interest payments on its debt (32m JPY).
Valuation Backtest
Araya Industrial Co Ltd
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Araya Industrial Co Ltd
stocks based on their intrinsic value.
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Fundamental Analysis
Araya Industrial Co Ltd
Balance Sheet Decomposition
Araya Industrial Co Ltd
| Current Assets | 34.1B |
| Cash & Short-Term Investments | 8.6B |
| Receivables | 14.3B |
| Other Current Assets | 11.2B |
| Non-Current Assets | 22.2B |
| Long-Term Investments | 9.2B |
| PP&E | 12.3B |
| Intangibles | 232m |
| Other Non-Current Assets | 464m |
| Current Liabilities | 17B |
| Accounts Payable | 11.5B |
| Accrued Liabilities | 198m |
| Short-Term Debt | 3.8B |
| Other Current Liabilities | 1.6B |
| Non-Current Liabilities | 5.5B |
| Long-Term Debt | 2B |
| Other Non-Current Liabilities | 3.5B |
Earnings Waterfall
Araya Industrial Co Ltd
|
Revenue
|
45.3B
JPY
|
|
Cost of Revenue
|
-37.1B
JPY
|
|
Gross Profit
|
8.2B
JPY
|
|
Operating Expenses
|
-5.8B
JPY
|
|
Operating Income
|
2.5B
JPY
|
|
Other Expenses
|
-396m
JPY
|
|
Net Income
|
2.1B
JPY
|
Free Cash Flow Analysis
Araya Industrial Co Ltd
Profitability Score
Profitability Due Diligence
Araya Industrial Co Ltd's profitability score is 49/100. The higher the profitability score, the more profitable the company is.
Score
Araya Industrial Co Ltd's profitability score is 49/100. The higher the profitability score, the more profitable the company is.
Solvency Score
Solvency Due Diligence
Araya Industrial Co Ltd's solvency score is 74/100. The higher the solvency score, the more solvent the company is.
Score
Araya Industrial Co Ltd's solvency score is 74/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
Price Targets Summary
Araya Industrial Co Ltd
Shareholder Return
Price
Araya Industrial Co Ltd
| Average Annual Return | 11.2% |
| Standard Deviation of Annual Returns | 27.45% |
| Max Drawdown | -40% |
| Market Capitalization | 21.1B JPY |
| Shares Outstanding | 5 565 700 |
| Percentage of Shares Shorted |
N/A
|
Company Profile
Araya Industrial Co Ltd
Country
Industry
Market Cap
Dividend Yield
Description
Araya Industrial Co., Ltd. engages in manufacture and sale of steel pipes, precision parts for office automation (OA) equipment, and bicycle rims. The company is headquartered in Osaka, Osaka-Fu and currently employs 505 full-time employees. The firm operates through three business segments. The Steel Pipe-related business is engaged in the manufacture and sale of ordinary steel pipes, stainless steel pipes, various types of steel, precision processed products, and other products. The company is also engaged in the manufacture and sale of agricultural houses, facility materials and agricultural foils. The Bicycle business is engaged in the manufacture and sale of bicycle rims and import and sale of completed bicycles. The Real Estate Rental business is engaged in the leasing of real estate such as land, buildings and warehouses. The company is also engaged in the manufacture and sale of mechanical parts and welfare equipment, and non-life insurance agency.
Contact
IPO
Employees
Officers
The intrinsic value of one
Araya Industrial Co Ltd
stock under the Base Case scenario is
8 112.8
JPY.
Compared to the current market price of 3 785 JPY,
Araya Industrial Co Ltd
is
Undervalued by 53%.
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