WATCH Elecom Co., Ltd. (6750.T)
Technology · Computer Hardware · JPX · Japan
63
Final Score
-64.8%
Margin of Safety
85
Quality Score
¥2,030
Current Price
¥163.5B
Market Cap
Key Metrics
Pe Ratio
7.84
Forward Pe
16.29
Pb Ratio
1.49
Ev Ebitda
5.01
Roe
22.2%
Gross Margin
39.5%
Operating Margin
11.4%
Net Margin
15.5%
Dividend Yield
287.0%
Debt To Equity
0.45
Current Ratio
3.47
📈 Trend Charts
Revenue Trend
EPS Trend
Net Income Trend
Free Cash Flow Trend
Intrinsic Value Estimates
Low
¥985
Base
¥1,231
High
¥1,478
Pipeline Stage Details
Stage A — Hard Filters ✅
Pe Ratio
7.84
Eps Positive Years
4.00
Eps Lookback
4.00
Fcf Positive Years
4.00
Fcf Lookback
4.00
Debt To Equity
0.45
Current Ratio
3.47
Dilution Cagr
-0.02
Stage B — Quality Score: 85/100
Stage C — Cyclicality: LOW
Normalized EPS
¥148.36
Stage F — Final Score Breakdown
| Component | Weighted Score |
|---|---|
| Valuation | 3.0 |
| Earnings Quality | 21.2 |
| Balance Sheet | 18.0 |
| Stability | 12.0 |
| Moat Proxies | 9.0 |
Top Drivers
- Exceptional business quality (score 85/100): consistent profitability, strong returns on capital, and stable margins — hallmarks of a Buffett-style competitive moat.
- Low P/E of 7.8x — classic Graham deep-value territory. The market is pricing in pessimism, yet the business continues to generate positive earnings.
- High ROIC of 25.2% — the business earns well above its cost of capital, indicating a strong competitive advantage and efficient capital allocation (Buffett seeks ROIC > 12%).
- Fortress balance sheet: D/E of 0.45x (conservative) and current ratio of 3.47x — ample liquidity and low financial risk. Graham emphasis on capital preservation.
- Low cyclicality: earnings are relatively stable and predictable, making intrinsic value estimates more reliable.
Top Risks
- No significant risks identified in this analysis.
Financial History
| Year | Revenue | Gross Profit | Operating Income | Net Income | EPS |
|---|---|---|---|---|---|
| 2023 | ¥103.7B | ¥38.3B | ¥11.3B | ¥8.1B | ¥95.32 |
| 2024 | ¥110.2B | ¥42.6B | ¥12.4B | ¥10.0B | ¥119.93 |
| 2025 | ¥118.0B | ¥46.2B | ¥13.5B | ¥9.3B | ¥119.24 |
| 2026 | ¥132.1B | ¥52.4B | ¥15.5B | ¥20.2B | ¥258.96 |
Cash Flow History
| Year | Operating CF | CapEx | Free Cash Flow |
|---|---|---|---|
| 2022 | N/A | N/A | N/A |
| 2023 | ¥9.2B | ¥-6.7B | ¥2.4B |
| 2024 | ¥9.7B | ¥-3.1B | ¥6.6B |
| 2025 | ¥17.4B | ¥-3.6B | ¥13.7B |
| 2026 | ¥9.9B | ¥-4.8B | ¥5.1B |