| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2028.29 | -52 |
| Intrinsic value (DCF) | 1303.90 | -69 |
| Graham-Dodd Method | 2898.58 | -32 |
| Graham Formula | 295.75 | -93 |
Yomeishu Seizo Co., Ltd. is a Tokyo-based Japanese company specializing in the production and sale of herbal liqueurs, pharmaceutical products, and health beverages. Founded in 1923, the company is best known for its flagship product, Yomeishu, an herbal liqueur with a rich heritage in traditional Japanese medicine. Beyond alcoholic beverages, Yomeishu Seizo offers a diverse product portfolio, including quasi-pharmaceutical health products, vinegar-based drinks, and craft gin cocktails. The company operates in Japan, Hong Kong, Malaysia, Singapore, and Taiwan, leveraging its brand recognition in herbal wellness. Additionally, Yomeishu Seizo engages in real estate leasing, restaurant management, and renewable energy generation, diversifying its revenue streams. As a player in the Consumer Defensive sector, the company benefits from steady demand for its health-oriented beverages and quasi-pharmaceutical products. With a market capitalization of ¥42.3 billion, Yomeishu Seizo maintains a niche yet stable position in Japan’s beverage and wellness industry.
Yomeishu Seizo presents a stable but low-growth investment opportunity, primarily due to its niche market focus and conservative financials. The company’s zero-debt balance sheet and consistent dividend payout (¥45 per share) suggest financial prudence, while its modest beta (0.013) indicates low volatility relative to the broader market. However, revenue growth appears stagnant (¥10.2 billion in FY2024), and net income (¥952 million) remains constrained by high capital expenditures (¥-2.49 billion). The company’s reliance on traditional herbal liqueurs limits exposure to global spirits trends, though diversification into quasi-pharmaceuticals and energy could provide long-term stability. Investors seeking defensive exposure to Japan’s beverage and wellness sector may find Yomeishu Seizo appealing, but those prioritizing growth should weigh its limited international expansion and competitive pressures.
Yomeishu Seizo operates in a specialized segment of Japan’s beverage industry, blending traditional herbal liqueurs with quasi-pharmaceutical products. Its competitive advantage lies in brand heritage—Yomeishu has been a household name in Japan for a century, particularly among older demographics seeking health-oriented alcoholic beverages. The company’s direct-to-consumer sales via www.yomeishu-online.jp further strengthen its distribution. However, Yomeishu Seizo faces challenges from larger global distillers (e.g., Suntory, Kirin) that dominate premium spirits and have stronger export capabilities. Its craft gin offerings compete with Japan’s burgeoning artisanal spirits market, where smaller distilleries like Kyoto Distillery (makers of Ki No Bi Gin) excel in premiumization. The quasi-pharmaceutical segment pits Yomeishu against OTC health brands like Taisho Pharmaceutical. While Yomeishu Seizo’s real estate and energy ventures provide diversification, they lack scale compared to specialized competitors. The company’s lack of debt is a strength, but limited R&D spending (~2.4% of revenue) risks stagnation in innovation-driven markets.