| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 8660.68 | 251 |
| Intrinsic value (DCF) | 829.98 | -66 |
| Graham-Dodd Method | 3472.68 | 41 |
| Graham Formula | 6203.27 | 152 |
Tsuruha Holdings Inc. is a leading Japanese drugstore chain specializing in pharmaceutical and cosmetic products. Founded in 1929 and headquartered in Sapporo, the company operates a vast network of 2,448 stores across Japan and 22 stores in Thailand, positioning itself as a key player in Japan's healthcare retail sector. Tsuruha Holdings caters to the growing demand for over-the-counter medicines, beauty products, and wellness items, benefiting from Japan's aging population and increasing health awareness. The company's vertically integrated supply chain and strong brand recognition enhance its competitive edge. With a market capitalization of approximately ¥565 billion, Tsuruha Holdings is a significant contributor to Japan's pharmaceutical retail industry, leveraging its extensive store footprint and customer loyalty to drive consistent revenue growth.
Tsuruha Holdings presents a stable investment opportunity within Japan's defensive healthcare retail sector. The company benefits from consistent demand for pharmaceuticals and cosmetics, supported by Japan's aging demographic and health-conscious consumer base. With a solid financial position—evidenced by ¥58.6 billion in cash and equivalents and manageable debt levels—Tsuruha demonstrates resilience. However, risks include intense competition in Japan's crowded drugstore market and potential margin pressures from regulatory changes or supply chain disruptions. The company's low beta (0.23) suggests lower volatility relative to the market, appealing to conservative investors. A dividend yield of approximately 2.1% (based on a ¥267 per share dividend) adds income appeal, though growth prospects may be tempered by market saturation.
Tsuruha Holdings competes in Japan's highly fragmented drugstore market, where scale and operational efficiency are critical. The company's competitive advantage lies in its extensive store network, strong regional presence (particularly in Hokkaido), and vertically integrated supply chain, which helps maintain cost controls and product availability. Unlike smaller regional players, Tsuruha benefits from economies of scale in procurement and distribution. However, it faces stiff competition from larger rivals like Matsumotokiyoshi (Sun Drug) and Welcia Holdings, which have broader national footprints and stronger private-label offerings. Tsuruha's expansion into Thailand provides modest diversification but remains a small contributor. The company's focus on health and beauty segments differentiates it from general merchandise-focused competitors, but it must continuously innovate in customer service and digital integration to retain market share amid rising e-commerce penetration in pharmaceutical retail.