| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3998.75 | 0 |
| Intrinsic value (DCF) | 1444.00 | -64 |
| Graham-Dodd Method | 3611.22 | -10 |
| Graham Formula | 4678.92 | 17 |
Kadoya Sesame Mills Incorporated (2612.T) is a leading Japanese company specializing in the development, manufacturing, and sale of sesame oil and related products. Founded in 1858 and headquartered in Tokyo, the company has a long-standing reputation for high-quality sesame-based products, including pure, hot, and white sesame oils, sesame paste, roasted sesame seeds, and sesame seed meal. These products cater to both retail consumers and food service/industrial clients, serving households, restaurants, and processed food manufacturers. Operating in the Packaged Foods sector under the Consumer Defensive industry, Kadoya Sesame Mills benefits from stable demand due to the essential nature of its products. With a market capitalization of approximately ¥33.1 billion, the company maintains a strong presence in Japan's sesame oil market, leveraging its heritage and expertise to sustain growth in a competitive industry.
Kadoya Sesame Mills presents a stable investment opportunity within the Consumer Defensive sector, supported by consistent demand for its sesame-based products. The company's strong financials, including ¥35.68 billion in revenue and ¥2.26 billion in net income for FY 2024, reflect its profitability. With a low beta of 0.018, the stock exhibits low volatility, making it a defensive play. However, its growth prospects may be limited by its niche market focus and domestic concentration in Japan. The dividend yield, supported by a ¥85 per share payout, adds appeal for income-focused investors. Risks include potential commodity price fluctuations in sesame seeds and limited international diversification.
Kadoya Sesame Mills holds a competitive advantage through its long-established brand reputation and expertise in sesame oil production, dating back to 1858. Its product quality and consistency have solidified its position in Japan's packaged foods market. The company's vertically integrated operations—from sourcing to manufacturing—allow for cost control and quality assurance. However, its domestic focus may limit growth compared to global competitors. The sesame oil market is relatively niche, with competition from both specialized producers and larger diversified food companies. Kadoya's competitive positioning relies on brand loyalty and product differentiation, but it faces challenges from cheaper imported alternatives and shifting consumer preferences toward healthier oils. Its ability to innovate within the sesame product category will be crucial for maintaining market share.