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Stock Analysis & ValuationASKUL Corporation (2678.T)

Professional Stock Screener
Previous Close
¥1,365.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)2190.6160
Intrinsic value (DCF)804.59-41
Graham-Dodd Method687.96-50
Graham Formula961.21-30

Strategic Investment Analysis

Company Overview

ASKUL Corporation (2678.T) is a leading Japanese provider of office supplies mail-order services, catering primarily to small and medium-sized offices. Founded in 1963 and headquartered in Tokyo, ASKUL operates in the Specialty Retail sector under the broader Consumer Cyclical industry. The company has established a strong presence in Japan's B2B office supply market, leveraging its efficient logistics and e-commerce platform to deliver a wide range of products, including stationery, furniture, and IT equipment. ASKUL's business model focuses on convenience, reliability, and cost-effectiveness, making it a trusted partner for businesses seeking streamlined procurement solutions. With a market capitalization of approximately ¥140.2 billion, ASKUL continues to innovate in digital transformation and supply chain optimization to maintain its competitive edge in Japan's evolving office supply landscape.

Investment Summary

ASKUL Corporation presents a stable investment opportunity with moderate growth potential in Japan's niche office supply market. The company's low beta (0.349) suggests lower volatility compared to the broader market, appealing to risk-averse investors. With a revenue of ¥471.7 billion and net income of ¥19.1 billion, ASKUL demonstrates solid profitability, supported by a healthy operating cash flow of ¥16.9 billion. However, capital expenditures of ¥11.6 billion indicate ongoing investments in infrastructure, which may pressure short-term cash flows. The company's dividend yield, based on a ¥38 per share payout, adds income appeal. Risks include Japan's stagnant economic growth and potential competition from e-commerce giants expanding into B2B office supplies.

Competitive Analysis

ASKUL Corporation holds a strong position in Japan's office supply market, differentiating itself through specialized B2B services tailored for small and medium-sized offices. Its competitive advantage lies in its established logistics network, which ensures timely delivery—a critical factor for business customers. The company's focus on digital transformation enhances its e-commerce platform, providing a seamless ordering experience. However, ASKUL faces competition from both traditional office supply retailers and emerging e-commerce players. Its domestic focus limits exposure to international markets, unlike global competitors. The company's ability to maintain cost efficiency and customer loyalty through value-added services (such as bulk discounts and customized procurement solutions) strengthens its market position. Yet, it must continuously innovate to counter the threat of larger retailers and online platforms expanding into the B2B space.

Major Competitors

  • Marvelous Inc. (7844.T): Marvelous Inc. operates in Japan's retail sector, offering office supplies and consumer goods. While it lacks ASKUL's specialized B2B focus, its broader product range appeals to diverse customer segments. Marvelous has a weaker logistics network for office supply deliveries compared to ASKUL, but its strong brand recognition in retail gives it cross-selling opportunities.
  • Sekichu Corporation (9878.T): Sekichu is a direct competitor in Japan's office supply market, providing similar mail-order services. It competes closely with ASKUL in pricing and product variety but has a smaller market share. Sekichu's strength lies in its regional presence, though it lacks ASKUL's nationwide logistics efficiency and digital platform sophistication.
  • Amazon.com Inc. (AMZN): Amazon's B2B platform (Amazon Business) poses a long-term threat to ASKUL, offering global scale and competitive pricing. However, Amazon's limited localization in Japan and less specialized service for small offices give ASKUL an edge in customer relationships and tailored solutions. ASKUL's deep understanding of the Japanese market remains a key differentiator.
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