| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 10995.55 | 193 |
| Intrinsic value (DCF) | 2080.03 | -45 |
| Graham-Dodd Method | 4110.93 | 10 |
| Graham Formula | 9136.52 | 144 |
Arigatou Services Company, Limited (3177.T) is a Japanese specialty retail company headquartered in Imabari, Japan. Founded in 2000, the company operates in the consumer cyclical sector, managing reuse stores, fast-food restaurants, and real estate rental properties. With a market capitalization of approximately ¥3.11 billion, Arigatou Services serves niche markets by offering second-hand goods and quick-service dining options, catering to cost-conscious consumers. The company's diversified business model—spanning retail and real estate—provides resilience against sector-specific downturns. Its operations are primarily concentrated in Japan, leveraging local market demand for affordable retail and dining solutions. Investors may find Arigatou Services appealing due to its steady revenue stream (¥10.61 billion in FY2025) and profitability (net income of ¥503.86 million). However, its small-cap status and limited international presence may pose growth constraints compared to larger retail players.
Arigatou Services presents a mixed investment profile. On the positive side, the company maintains stable profitability (EPS of ¥545.82) and generates consistent operating cash flow (¥858.03 million), supporting its dividend payout (¥125 per share). Its low beta (-0.014) suggests minimal correlation with broader market movements, potentially offering defensive characteristics. However, risks include modest revenue growth prospects due to its regional focus and competition from larger retail chains. The company’s debt-to-equity position (total debt of ¥1.70 billion against cash reserves of ¥1.73 billion) is manageable but warrants monitoring. Investors seeking exposure to Japan’s niche retail and dining sectors may find value here, though diversification limitations and small-scale operations could deter growth-focused portfolios.
Arigatou Services competes in Japan’s fragmented specialty retail and fast-food sectors, where its primary advantage lies in localized operations and cost-efficient reuse retailing. Unlike national retail giants, Arigatou’s smaller footprint allows agile adaptation to regional consumer preferences, particularly in secondary cities like Imabari. Its reuse stores benefit from Japan’s growing sustainability trends, differentiating it from conventional retailers. However, the company lacks the economies of scale and brand recognition of larger competitors, limiting pricing power and expansion potential. In fast food, Arigatou’s restaurants face intense competition from dominant chains like McDonald’s Japan (2702.T) and local players, necessitating reliance on niche markets. The real estate segment provides ancillary income but is not a core growth driver. Overall, Arigatou’s competitive positioning is mid-tier—its strengths in local market penetration are offset by limited scalability and reliance on cyclical consumer spending.