| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2068.24 | -17 |
| Intrinsic value (DCF) | 1321.13 | -47 |
| Graham-Dodd Method | 1082.83 | -56 |
| Graham Formula | 1574.30 | -36 |
MatsukiyoCocokara & Co. is a leading Japanese drugstore and pharmacy chain, operating 1,726 stores across all 47 prefectures in Japan. Founded in 1932 and headquartered in Matsudo, the company specializes in pharmaceuticals, over-the-counter drugs, health and beauty products, and daily necessities. As a key player in Japan's healthcare sector, MatsukiyoCocokara benefits from Japan's aging population and growing demand for accessible healthcare services. The company's vertically integrated supply chain and strong brand recognition allow it to maintain competitive pricing and customer loyalty. With a market capitalization of ¥1.19 trillion (as of latest data), MatsukiyoCocokara is one of the largest drugstore operators in Japan, leveraging economies of scale to drive profitability. The company's omnichannel strategy, combining physical stores with online sales, positions it well in Japan's evolving retail landscape.
MatsukiyoCocokara presents a stable investment opportunity with defensive characteristics, supported by Japan's structural demand for pharmaceuticals and healthcare products. The company's low beta (0.15) indicates lower volatility compared to the broader market, appealing to risk-averse investors. With ¥117.7 billion in cash and modest debt (¥20.7 billion), the balance sheet is strong, supporting continued dividend payments (¥44 per share). However, growth may be constrained by Japan's stagnant population and intense competition in the drugstore sector. The company's ability to maintain margins through cost efficiencies and private label expansion will be key to future performance. Investors should monitor demographic trends and regulatory changes in Japan's healthcare sector.
MatsukiyoCocokara holds a strong position in Japan's fragmented drugstore market, competing primarily on scale, store network density, and private label offerings. The company's nationwide presence gives it superior distribution capabilities compared to regional players. Its vertically integrated operations provide cost advantages in procurement and logistics. However, the Japanese drugstore sector is highly competitive, with rivals aggressively expanding store counts and digital capabilities. MatsukiyoCocokara's strategy focuses on health-conscious consumers and elderly care products, differentiating from competitors that emphasize general merchandise. The company's scale allows for better bargaining power with suppliers, but it faces margin pressure from discount chains and online pharmacies. Its store locations in residential areas (rather than high-traffic urban centers) provide stability but may limit growth potential compared to more convenience-focused rivals. The company's private label products (about 30% of sales) help maintain margins in a price-sensitive market.