Intrinsic Value ALBIS Co.,Ltd. (7475.T)

• Previous Close: ¥2,618.00
• Intrinsic Value: ¥1,668.09
• Upside potential: -36%

Stock Valuation Context

Business Model And Market Position

ALBIS Co., Ltd. operates in Japan's packaged foods sector, specializing in the production and retail of prepared foods, tofu, and processed meat products. The company has established a vertically integrated model, controlling production, processing, and distribution to ensure quality and efficiency. Beyond food retailing, ALBIS engages in sustainability initiatives, including PET bottle volume reduction and cleaning services for transport equipment, reinforcing its commitment to environmental responsibility. As a regional player, ALBIS maintains a steady presence in Japan's competitive consumer defensive sector, leveraging its long-standing reputation since its founding in 1968. The company’s diversified operations, from food production to waste management, provide resilience against market fluctuations while catering to domestic demand for convenience and sustainable practices.

Revenue Profitability And Efficiency

ALBIS reported revenue of JPY 98.2 billion for FY2025, with net income of JPY 1.6 billion, reflecting a modest but stable profitability margin. Operating cash flow stood at JPY 3.1 billion, though capital expenditures of JPY -3.6 billion indicate ongoing investments in operations. The company’s ability to maintain positive cash flow despite high capex suggests disciplined financial management.

Earnings Power And Capital Efficiency

With diluted EPS of JPY 187.62, ALBIS demonstrates consistent earnings power. The company’s capital efficiency is supported by its integrated business model, which optimizes production and distribution costs. However, the relatively low beta of 0.255 indicates lower volatility but also limited growth momentum compared to peers.

Balance Sheet And Financial Health

ALBIS holds JPY 6.2 billion in cash and equivalents against total debt of JPY 8.2 billion, reflecting a manageable leverage position. The balance sheet appears stable, with sufficient liquidity to cover short-term obligations and support ongoing operational needs.

Growth Trends And Dividend Policy

The company’s growth appears steady rather than explosive, aligned with its mature market position. ALBIS pays a dividend of JPY 70 per share, signaling a commitment to shareholder returns, though the yield may be modest given its market capitalization of JPY 24.9 billion.

Valuation And Market Expectations

Trading at a market cap of JPY 24.9 billion, ALBIS is valued as a stable, low-beta player in Japan’s consumer defensive sector. Investors likely view the company as a conservative holding, with expectations aligned to steady, incremental growth rather than rapid expansion.

Strategic Advantages And Outlook

ALBIS benefits from its integrated operations and regional market familiarity, providing a defensive posture in economic downturns. The company’s focus on sustainability and operational efficiency positions it well for long-term stability, though its growth prospects may be limited by Japan’s stagnant demographic trends.

Sources

Company filings, market data