| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2118.30 | -55 |
| Intrinsic value (DCF) | 7254.85 | 56 |
| Graham-Dodd Method | 1036.60 | -78 |
| Graham Formula | 3357.23 | -28 |
Ebara Corporation (6361.T) is a leading Japanese industrial machinery manufacturer with a diversified portfolio spanning fluid machinery, environmental plants, and precision machinery. Founded in 1912 and headquartered in Tokyo, Ebara specializes in high-performance pumps, compressors, and turbines for water, energy, and petrochemical industries. The company also designs and operates waste-to-energy plants, recycling facilities, and biomass power generation systems, positioning itself as a key player in sustainable infrastructure. Additionally, Ebara supplies critical semiconductor manufacturing equipment, including chemical mechanical polishing (CMP) systems and vacuum pumps, catering to the global tech supply chain. With a market cap exceeding ¥1 trillion, Ebara combines engineering expertise with environmental solutions, serving industries where reliability and efficiency are paramount. Its three business segments—Fluid Machinery & Systems, Environmental Plants, and Precision Machinery—reflect a balanced exposure to industrial growth and green technology trends.
Ebara Corporation presents a compelling investment case with its diversified industrial machinery portfolio and strong positioning in environmental and semiconductor-related markets. The company's ¥86.7 billion revenue and ¥71.4 billion net income (FY 2024) reflect stable profitability, supported by a healthy operating cash flow of ¥100.9 billion. A modest beta of 0.835 suggests lower volatility than the broader market, while a ¥56 dividend per share indicates shareholder returns. Key risks include exposure to cyclical industrial capex and potential semiconductor demand fluctuations. However, Ebara's technological leadership in pumps/compressors and waste-to-energy systems provides competitive insulation. Investors should monitor JPY currency impacts on international operations (50%+ revenue overseas) and execution in high-growth segments like CMP equipment for chipmakers.
Ebara Corporation competes through technological specialization and vertical integration across niche industrial markets. In Fluid Machinery, its API-certified pumps and steam turbines compete on durability for extreme conditions (e.g., cryogenic applications), differentiating from volume-focused rivals. The Environmental Plants segment leverages Japan’s advanced waste management regulations, with incineration plants achieving 30%+ energy recovery rates—a benchmark few global peers match. Precision Machinery’s CMP systems hold ~25% global share (2nd after Applied Materials), benefiting from semiconductor miniaturization trends. However, Ebara faces pricing pressure in standard pumps from Chinese manufacturers and lacks the scale of conglomerates like Siemens Energy in turbines. Its strategic focus on aftermarket services (20% of revenue) creates sticky customer relationships but requires heavy R&D (5% of sales). While smaller than multinational peers, Ebara’s expertise in corrosive/abrasive fluid handling and Japan’s infrastructure export initiatives provide regional advantages. The company’s main challenge is balancing margin protection in traditional industries with growth investments in semiconductor and renewable energy adjacencies.