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Stock Analysis & ValuationKakaku.com, Inc. (2371.T)

Professional Stock Screener
Previous Close
¥2,110.00
Sector Valuation Confidence Level
High
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)2379.8313
Intrinsic value (DCF)4402.98109
Graham-Dodd Method81.65-96
Graham Formula2490.9918

Strategic Investment Analysis

Company Overview

Kakaku.com, Inc. is a leading Japanese internet services company specializing in price comparison, restaurant reviews, and lifestyle media. Operating flagship platforms like kakaku.com and tabelog.com, the company provides consumers with comprehensive purchasing support, restaurant search and reservation services, and travel-related content. Founded in 1997 and headquartered in Tokyo, Kakaku.com has established itself as a trusted digital intermediary in Japan's e-commerce and hospitality sectors. The company's diversified portfolio includes real estate portals, job classifieds, FX market insights, and entertainment media, catering to a broad range of consumer needs. With a market capitalization of approximately ¥492 billion, Kakaku.com plays a pivotal role in Japan's digital economy, bridging the gap between consumers and service providers. Its strong cash position and consistent profitability underscore its resilience in the competitive internet content and information industry.

Investment Summary

Kakaku.com presents an attractive investment opportunity due to its dominant position in Japan's price comparison and restaurant review markets, coupled with strong financials. The company boasts a healthy net income of ¥18.1 billion and robust operating cash flow of ¥19.5 billion for FY2024, supported by its asset-light business model. With ¥37.7 billion in cash and equivalents against modest debt of ¥5.2 billion, Kakaku.com maintains a solid balance sheet. The stock offers a dividend yield of approximately 1.1% (based on a ¥55 per share dividend). However, investors should consider Japan's mature internet market and potential saturation in core services as growth constraints. The company's beta of 0.833 suggests lower volatility than the broader market, appealing to risk-averse investors.

Competitive Analysis

Kakaku.com enjoys significant competitive advantages through its first-mover position and network effects in Japan's price comparison and restaurant review segments. The company's kakaku.com platform benefits from strong brand recognition and user loyalty, creating high switching costs for both consumers and merchants. Its tabelog.com service maintains leadership in restaurant reviews through comprehensive coverage and a sophisticated rating system. Kakaku.com's multi-platform strategy diversifies revenue streams while reinforcing its ecosystem. The company's deep understanding of Japanese consumer behavior and local market dynamics presents a barrier to foreign competitors. However, it faces increasing competition from mobile-native platforms and vertical specialists. Kakaku.com's financial strength allows for continued investment in technology and user experience, but it must innovate to maintain its edge against agile startups and expanding services from tech giants. The company's ability to monetize its user base through advertising and lead generation remains a key differentiator in Japan's crowded digital marketplace.

Major Competitors

  • Z Holdings Corporation (4689.T): Z Holdings operates Japan's dominant search engine (Yahoo! Japan) and messaging platform (LINE), giving it superior scale in digital advertising. Its restaurant review service competes with tabelog.com, though with less specialized focus. Strengths include massive user base and financial resources, but it lacks Kakaku.com's depth in price comparison services. The company's broader internet ecosystem presents both competitive pressure and potential partnership opportunities.
  • Rakuten Group, Inc. (4755.T): Rakuten's e-commerce marketplace and cashback programs compete indirectly with kakaku.com's price comparison service. The company's scale in online retail and financial services creates a formidable ecosystem. However, Rakuten's recent financial struggles and lack of specialized comparison tools leave room for Kakaku.com's focused offerings. Rakuten's international presence contrasts with Kakaku.com's Japan-centric strategy.
  • Gurunavi, Inc. (3765.T): Gurunavi is a pure-play competitor in restaurant discovery and reservations, directly challenging tabelog.com. The company specializes in gourmet content and has strong restaurant relationships. However, it lacks Kakaku.com's diversified revenue streams and financial stability. Gurunavi's narrower focus makes it vulnerable to shifts in dining trends and competition from larger platforms.
  • GMO Internet, Inc. (3903.T): GMO Internet offers competing price comparison services through its subsidiaries, particularly in financial products and travel. The company's strength lies in its internet infrastructure services and cryptocurrency operations. While not a direct competitor across all segments, GMO's financial comparison tools compete with Kakaku.com's insurance and FX information services. Its broader tech focus dilutes its competitive threat in Kakaku.com's core markets.
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