Risk factor
Low price volatility
Profitability factor
Decent dividends
About
Established in 1949 and headquartered in Osaka, Japan, Wakita & Co., LTD. is a multifaceted trading company specializing in the manufacture, lease, and sale of civil engineering and construction equipment. Its extensive product catalog, offered under the MEIHO brand, features a wide array of machinery such as excavators, bulldozers, generators, wheel-loaders, rollers, and pumps, alongside specialized components like diamond blades and rubber crawlers. Beyond new sales, Wakita is also a prominent player in the market for pre-owned construction equipment, hosting online auctions and actively exporting these machines to key international markets across Asia, the United States, Europe, Oceania, and the Middle East. The company's diverse operations extend significantly beyond heavy machinery. Wakita provides comprehensive services for commercial facilities, including store planning, construction (interior and exterior), facility support, and financial services. It further offers construction and financing solutions for various industrial facilities and equipment, catering to sectors such as manufacturing, transportation, communications, agriculture, medical, and information communications. Complementing these offerings, Wakita deals in audiovisual equipment like karaoke machines and other entertainment devices, sells game machines, manages the lease and rental of real estate properties (including commercial buildings and condominiums), and supplies stone materials for construction purposes.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. In particular, the stock is overpriced on P/E, 'cheap' on EV/EBITD.