Ebara Corporation (6361.T) fair value

ACCE thesis

Ebara makes the vacuum pumps, precision pumps and abatement systems that semiconductor fabs and general industry rely on, and its precision machinery and dry vacuum business have given it a durable position in chipmaking supply chains. Its 32.1% gross margin and 15.7% ROE point to pricing power that a plain pump maker would not usually have. Revenue growth of 3.5% is modest, so the investment case rests on whether semiconductor capex and the mix shift toward higher-margin dry pumps and services lift earnings faster than sales. The stock trades at 23.3 times trailing earnings and 25.0 times forward, a small premium that implies the market already expects some of that improvement. At a 9.8% operating margin the room for upside depends on operating leverage, which is worth testing against order trends and fab spending plans before committing further research time.