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Stock Analysis & ValuationFujisan Magazine Service Co., Ltd. (3138.T)

Professional Stock Screener
Previous Close
¥1,028.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1101.517
Intrinsic value (DCF)667.56-35
Graham-Dodd Method730.88-29
Graham Formula293.87-71

Strategic Investment Analysis

Company Overview

Fujisan Magazine Service Co., Ltd. (3138.T) is a leading Japanese online bookstore specializing in magazines, offering over 10,000 print and 2,500 digital magazines. Headquartered in Tokyo, the company serves a niche market in the Specialty Retail sector under the broader Consumer Cyclical industry. Fujisan Magazine Service provides multi-platform accessibility, ensuring compatibility with paper, PCs, tablets, and smartphones, catering to diverse reader preferences. Founded in 2002, the company has established itself as a key player in Japan's digital magazine distribution space. With a market capitalization of approximately ¥3.05 billion, Fujisan Magazine Service continues to leverage Japan's strong magazine culture while adapting to digital transformation trends. The company's focus on digital expansion and broad magazine selection positions it well in a competitive retail landscape.

Investment Summary

Fujisan Magazine Service presents a niche investment opportunity in Japan's digital and print magazine retail sector. The company's stable revenue (¥5.62 billion) and net income (¥171 million) reflect its established market position. However, its low beta (0.079) suggests minimal correlation with broader market movements, which may appeal to conservative investors. The company maintains a strong cash position (¥3.2 billion) with moderate debt (¥550 million), supporting financial stability. A dividend yield of approximately 1.7% (¥16 per share) adds income appeal. Risks include reliance on Japan's declining print magazine market and competition from global digital content platforms. Investors should weigh Fujisan's niche dominance against long-term industry headwinds.

Competitive Analysis

Fujisan Magazine Service holds a unique position as Japan's specialized online magazine retailer, differentiating itself through an extensive catalog (10,000+ magazines) and multi-platform accessibility. Its competitive advantage lies in deep relationships with Japanese publishers and a localized user experience tailored to domestic readers. However, the company faces pressure from broader e-commerce platforms like Amazon Japan and Rakuten, which offer magazine subscriptions alongside other products. Fujisan's focus solely on magazines limits diversification but enhances specialization. The shift to digital (2,500+ digital magazines) helps future-proof the business, though it competes with global digital newsstands like Apple's App Store and Google Play. Fujisan's smaller scale compared to international players restricts its bargaining power with publishers but allows agility in catering to niche magazine segments. The company's main challenge is sustaining growth as Japan's print magazine market contracts, requiring further digital adoption and potential expansion into adjacent content verticals.

Major Competitors

  • Rakuten Group, Inc. (4755.T): Rakuten operates a diversified e-commerce platform including magazine sales, competing with Fujisan through its broader product range and membership ecosystem. While Rakuten lacks Fujisan's magazine specialization, its scale and loyalty program pose a significant threat. Rakuten's weakness in this segment is less curated magazine discovery compared to Fujisan's focused platform.
  • Amazon.com, Inc. (AMZN): Amazon Japan's Kindle Newsstand competes directly with Fujisan's digital magazine offerings. Amazon's global scale and Prime membership integration give it superior distribution and pricing power. However, Fujisan maintains an edge in local magazine selection and publisher relationships. Amazon's weakness is less focus on niche Japanese magazines compared to Fujisan's dedicated inventory.
  • Z Holdings Corporation (Yahoo Japan) (4689.T): Yahoo Japan's digital content marketplace includes magazine sales, leveraging its large user base. While it offers convenience through ecosystem integration, it lacks Fujisan's depth in magazine specialization. Yahoo's strength is cross-selling to existing users; its weakness is less publisher-focused curation compared to Fujisan.
  • Digital Hearts Holdings Co., Ltd. (3652.T): Digital Hearts provides digital content services including some magazine distribution, competing indirectly with Fujisan. Its strength lies in technical digital platform services rather than content curation. Fujisan maintains superior magazine-specific expertise, while Digital Hearts has broader digital service capabilities beyond publishing.
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