| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3011.68 | 21 |
| Intrinsic value (DCF) | 831.82 | -67 |
| Graham-Dodd Method | 2311.43 | -7 |
| Graham Formula | 1707.69 | -31 |
Alfresa Holdings Corporation is a leading Japanese healthcare company specializing in the wholesale, manufacturing, and distribution of pharmaceuticals, diagnostic reagents, and medical devices. Headquartered in Tokyo, Alfresa operates through multiple business segments, including ethical pharmaceuticals wholesaling, self-medication products, and medical-related services. The company serves hospitals, clinics, pharmacies, and drug stores across Japan and internationally. Alfresa also engages in contract manufacturing of pharmaceuticals and produces active pharmaceutical ingredients (APIs). With a strong market presence, the company plays a crucial role in Japan's healthcare supply chain, ensuring the efficient distribution of essential medical products. Its diversified business model, spanning both prescription and over-the-counter (OTC) drugs, positions it as a key player in the Medical Distribution sector. Alfresa’s commitment to quality and regulatory compliance reinforces its reputation in the industry.
Alfresa Holdings presents a stable investment opportunity within Japan's healthcare distribution sector, supported by consistent revenue streams and a strong market position. The company's low beta (-0.085) suggests defensive characteristics, making it less volatile compared to broader markets. With JPY 2.86 trillion in revenue and JPY 29.6 billion in net income, Alfresa demonstrates solid profitability. Its strong operating cash flow (JPY 86.4 billion) and healthy cash reserves (JPY 213.8 billion) provide financial flexibility. However, the company operates in a highly regulated and competitive industry, which may limit margin expansion. The dividend yield, supported by a JPY 63 per share payout, adds appeal for income-focused investors. Risks include regulatory pressures and potential supply chain disruptions in the pharmaceutical sector.
Alfresa Holdings holds a competitive advantage as one of Japan’s largest pharmaceutical wholesalers, benefiting from economies of scale and an extensive distribution network. Its diversified operations—spanning ethical pharmaceuticals, OTC drugs, and medical devices—reduce reliance on any single segment. The company’s strong relationships with hospitals and pharmacies enhance its market positioning. However, competition in Japan’s pharmaceutical distribution sector is intense, with rivals such as Toho Holdings and Suzuken dominating market share. Alfresa’s contract manufacturing and API production provide additional revenue streams but face competition from specialized global pharmaceutical manufacturers. The company’s financial stability and low debt (JPY 34.9 billion) strengthen its ability to navigate industry challenges. Nevertheless, pricing pressures from Japan’s national healthcare system and potential regulatory changes could impact profitability. Alfresa’s focus on operational efficiency and strategic partnerships will be key to maintaining its competitive edge.