1D·

Keyence 🇯🇵 Automation worth a look?

Good morning,


I find Japanese companies and culture extremely exciting 🧐. During my research I came across Keyence $6861 (+1.08%) as there isn't much about it here yet, so I thought I'd summarize the points I found.


I hope that one or the other will be interested.


Activity:


  • Globally positioned
  • 250 offices worldwide in 46 countries
  • More than 60% of sales are generated outside Japan.


Industry:


  • Automation through integrated imaging in industry
  • They are suppliers in the industry
  • The business competes software with direct sales


product:


  • You do not simply sell hardware but: "High end precision, fast integration, technical support"
  • You produce your own products, leaving you with high margins of over 80%.


Customers:


  • Chip manufacturers
  • car manufacturers
  • Medical and pharmaceutical industry
  • Consumer goods
  • Mechanical engineering
  • Logistics


The P/E ratio is around 35, historically it is lower than in the past, the company is not valued favorably but rather fairly.


Anyone interested in a profitable company from Japan with high margins and a broad range of customers in almost every sector should take a look at the company.


This is not investment advice. I would like to hear your opinions and assessments.

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7 Comments

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Thank you very much. I will definitely have a look! :)
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Build good cameras and flow sensors for us
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Landing in the depot today.👍🏻
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@Get_Rich_or_Die_Tryin aren't they quite highly valued?
I mean, according to Marketscreener, the peg 2026 is 4.99, and the other valuation multiples are also pretty high.
A lot is already priced in
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@capital_captain_2693 I tend to arrive at ~3.3, but yes, Keyence's valuation is generally high because it is a first-class company with quality, stability and moat. You always pay a premium there, the 10-year average is a PEG of 2.5-3.5, so not much more expensive than the long-term average, so that suits me.

And the growth estimates of 8-10% are also rather conservative.
Incidentally, they are also included in $ROBE
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Have the products in use. Camera-installed production stations for process reliability. Works very, very well. I work in the medical technology/pharma group.
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