Added to YB: 2024-06-12
Pitch date: 2024-06-11
6923.T [bullish]
Stanley Electric Co., Ltd.
+13.75%
current return
Author Info
Slow Turtle is an investment manager who invests in moats, special sits, commodities, deep value, and all caps. Sign up for the newsletter.
Company Info
Stanley Electric Co., Ltd., together with its subsidiaries, manufacture, sells, and import/export of automotive and other light bulbs in Japan and internationally.
Market Cap
JPY 452.4B
Pitch Price
JPY 2.7K
Price Target
6.0K (+93%)
Dividend
N/A
EV/EBITDA
4.36
P/E
17.37
EV/Sales
0.70
Sector
Automobile Components
Category
value
Stanley Electric (6923.T)
Stanley Electric (6923.T): Japanese auto lighting co aligned w/ Honda. Industry oligopoly seeing vol decline & cost pressure. Stanley maintains profitability edge vs peers & superior OCF margins. Sits on large net cash vs levered Euro peers. No corp gov issues, 90% FCF conversion, 20% buyback since '02, 50% total payout. Trades at 15% FCF yield on EV w/ 3% growth. Near historical cheapest on EV/NGV & P/TTA. Strong value zone of 2350-3350 for 10yrs. 15% underlying return w/ significant upside potential.
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