Noritsu Koki Co., Ltd. engages in manufacturing and healthcare businesses in Japan and internationally. The company provides DJ equipment; pen tips and brush bristles; medical database, remote image diagnosis, preventive medicine, and factoring services, as well as consulting for medical care and nursing care business providers; and systems to manage insurance pharmacies. It also offers its products through internet. The company was formerly known as Noritsu Optical Machinery Works Limited and changed its name to Noritsu Koki Co., Ltd. in 1961. Noritsu Koki Co., Ltd. was founded in 1951 and is headquartered in Tokyo, Japan.
Strategy: Beat the Nikkei 225
Return at exit: Live
Undervalued Growth With Exceptional Dividends
• Our ML engine identified Noritsu Koki as a compelling buy based on impressive market performance, attractive valuation, and strong profitability metrics.
• The stock has demonstrated consistent positive momentum with a 23% price return over six months and trades at just 0.88x book value despite robust financial performance.
• Profitability metrics are exceptional with nearly 50% gross margins and 18% operating margins, supported by 18.5% EBITDA growth and 18.6% quarterly revenue growth.
• The combination of growth and value is remarkable – a modest P/E of 12 paired with an extraordinary 7.9% dividend yield that grew 143% year-over-year.
• Analyst confidence is high, with Nomura/Instinet recently raising their price target to ¥2,600, suggesting ~40% upside potential from current levels.