[Stock-Analysis] EIZO (6737 JP): Japan's Last Monitor Maker with an Incredible Turnaround Story
EIZO has done an incredible pivot from gambling monitors to becoming the gold standard for professionals. The question is, should you buy its stock?
Disclaimer: The information in this article represents my opinions and should not be construed as personalized or individualized investment advice and are subject to change.
You might not have heard of EIZO, but it's considered the gold standard in the professional monitor world.
If you work in digital design, healthcare, finance or the security industry, chances are that you or your company has paid multiple times the price of a regular monitor to get your hands on an EIZO screen.
With the demand for professional monitors increasing and a manufacturing renaissance in Japan, could EIZO be a great stock to invest in?
EIZO is the Japanese word for 'image' and is also the name of the most-respected high-end monitor manufacturer.
Since 1968, the brand has developed high-quality monitors and display solutions for use in gambling, finance, healthcare, the graphic industry, air-traffic control and shipping.
The company is one of the only monitor companies with a 100% in-house manufacturing and most of the manufacturing and quality control is performed in Japan.
An extremely agile company
EIZO has shown that it is capable to adapt to a quickly changing market. In fact, of all monitor manufacturers in Japan, once the world’s largest monitor producer, EIZO is the only one left standing.
In 2006, EIZO shifted part of its structure away from its most profitable area, Amusement (Pachinko, or Japanese gambling machines), to high-end office monitors (B&P) and healthcare. Amusement stood for over 50% of all revenue in 2006, but now stands for less than 15%. Yet, revenue has largely recovered and since 2012 EIZO’s revenue has increased by more than 50%.
This is indeed a good sign that the company's leadership is well-equipped to deal with changing markets and new challenges.
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0. Konichi-Value Score
🤩 = Amazing
🙂 = Good
😑 = Acceptable