| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 1182.34 | -10 |
| Graham Formula | 890.66 | -32 |
CDG Co., Ltd. (2487.T) is a Japan-based marketing communication services provider specializing in sales promotion, business operation solutions, and pocket tissue manufacturing. Founded in 1974 and headquartered in Osaka, the company serves a diverse clientele across industries such as energy, real estate, food, pharmaceuticals, retail, finance, automotive, and tourism. CDG’s integrated marketing solutions help clients enhance brand visibility and operational efficiency. With a market cap of ¥7.4 billion (as of latest data), the company operates in Japan’s competitive advertising sector, leveraging localized expertise to cater to domestic and niche markets. Its dual focus on marketing services and tissue product sales provides diversified revenue streams. CDG’s strong cash position (¥4 billion) and debt-free balance sheet underscore financial stability, while its low beta (0.152) suggests resilience to market volatility. The company’s sector (Communication Services) and industry (Advertising Agencies) position it as a key player in Japan’s business-to-business marketing landscape.
CDG Co., Ltd. presents a stable but low-growth investment profile. Strengths include a debt-free balance sheet, strong cash reserves (¥4 billion), and consistent profitability (net income of ¥379 million in FY2023). The company’s low beta (0.152) indicates lower volatility compared to the broader market, appealing to risk-averse investors. However, revenue growth appears stagnant (¥11.3 billion in FY2023), and operating cash flow (¥205 million) is modest relative to market cap. The dividend yield (~2.5% based on a ¥37/share payout) adds income appeal, but limited international exposure and reliance on Japan’s mature advertising market may cap upside potential. Investors should weigh its financial stability against sector headwinds like digital disruption in traditional marketing services.
CDG Co., Ltd. competes in Japan’s fragmented advertising sector with a niche focus on sales promotion and operational solutions for domestic clients. Its competitive advantage lies in deep local market expertise, long-standing client relationships (since 1974), and a diversified industry footprint. Unlike global agencies, CDG’s hyper-localized approach allows tailored campaigns for Japanese businesses, particularly in non-digital marketing. The company’s secondary revenue stream from pocket tissue sales provides modest diversification but lacks scalability. Financially, CDG’s zero debt and high cash reserves (56% of market cap) offer flexibility but may indicate underutilized capital. Its main challenges include competing with larger agencies (e.g., Dentsu) in digital transformation and overcoming Japan’s shrinking traditional advertising spend. While CDG’s profitability (3.3% net margin) is respectable, it lags behind global peers in scale and technological capabilities. The company’s regional focus limits exposure to international economic cycles but also constrains growth opportunities beyond Japan’s saturated market.