investorscraft@gmail.com

Stock Analysis & ValuationCROOZ, Inc. (2138.T)

Professional Stock Screener
Previous Close
¥588.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1714.32192
Intrinsic value (DCF)448.64-24
Graham-Dodd Method663.5913
Graham Formulan/a

Strategic Investment Analysis

Company Overview

CROOZ, Inc. is a diversified Japanese technology company operating in e-commerce, media and advertising, gaming, and investment sectors. Headquartered in Tokyo, the company is best known for its fashion e-commerce platform SHOPLIST.com, which offers a comprehensive mail-order service. Additionally, CROOZ provides EC site system construction, fulfillment solutions, and advertising services. The company also develops and manages smartphone games and engages in private equity investments. Founded in 2001, CROOZ has established itself as a niche player in Japan's competitive digital landscape. With a market capitalization of approximately ¥6.02 billion, the company serves a growing demand for integrated digital commerce and entertainment solutions. Its diversified business model allows it to mitigate risks across different segments of the technology and consumer sectors.

Investment Summary

CROOZ, Inc. presents a mixed investment profile. On the positive side, the company reported a net income of ¥1.01 billion in the latest fiscal year, with diluted EPS of ¥89.3, indicating profitability. However, its operating cash flow was negative at -¥385 million, raising concerns about short-term liquidity. The company holds a substantial cash reserve of ¥12.86 billion against total debt of ¥11.66 billion, suggesting a manageable leverage position. With a beta of -0.162, CROOZ exhibits low correlation with the broader market, which could appeal to investors seeking diversification. The lack of dividend payouts may deter income-focused investors, but growth-oriented stakeholders might find value in its diversified tech-driven business model. Risks include competitive pressures in e-commerce and gaming, as well as reliance on the Japanese market.

Competitive Analysis

CROOZ, Inc. operates in highly competitive segments, including e-commerce, digital advertising, and mobile gaming. Its primary competitive advantage lies in its diversified portfolio, which allows it to cross-sell services and mitigate sector-specific risks. The company's SHOPLIST.com platform benefits from a niche focus on fashion e-commerce in Japan, differentiating it from broader marketplaces. However, CROOZ faces intense competition from larger e-commerce players and global gaming studios. Its advertising business competes with both domestic agencies and global tech giants. The company's relatively small scale limits its ability to invest heavily in R&D or marketing compared to industry leaders. Strengths include local market expertise and a multi-pronged revenue stream, while weaknesses include limited international presence and dependence on Japan's consumer spending trends. The negative operating cash flow indicates potential challenges in sustaining growth without further financing.

Major Competitors

  • Rakuten Group, Inc. (4755.T): Rakuten is a dominant force in Japanese e-commerce with its Rakuten Ichiba marketplace, overshadowing CROOZ's SHOPLIST in scale and brand recognition. Rakuten's strengths include a comprehensive ecosystem spanning fintech, mobile, and loyalty programs. However, its recent financial struggles and international expansion challenges present vulnerabilities. Compared to CROOZ, Rakuten has significantly greater resources but also more complex operational challenges.
  • Nexon Co., Ltd. (3659.T): Nexon is a major player in mobile and online gaming, competing with CROOZ's gaming segment. The company boasts hit titles and strong international presence, particularly in South Korea and China. Nexon's weakness includes dependence on a few blockbuster games. Compared to CROOZ, Nexon has superior gaming industry expertise but lacks CROOZ's diversified business model.
  • CyberAgent, Inc. (4751.T): CyberAgent operates in similar segments to CROOZ, including internet advertising and gaming. Its strength lies in popular media properties like AbemaTV and strong mobile game development. Weaknesses include intense competition in digital advertising. CyberAgent's scale gives it an advantage over CROOZ in marketing and content production budgets.
  • mixi, Inc. (2121.T): mixi is known for its social networking services and mobile games, competing with CROOZ in the gaming segment. The company's strength is its Monster Strike franchise, one of Japan's top-grossing mobile games. However, reliance on this single title is a significant risk. mixi's gaming focus is narrower than CROOZ's diversified approach but more established in hit game development.
HomeMenuAccount