| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1262.40 | 46 |
| Intrinsic value (DCF) | 337.20 | -61 |
| Graham-Dodd Method | 837.08 | -3 |
| Graham Formula | 706.57 | -18 |
Satudora Holdings Co., Ltd. is a leading Japanese drugstore and pharmacy operator headquartered in Sapporo. Founded in 1972, the company runs a network of 175 drugstores, 14 pharmacies, and 2 other stores, primarily serving the healthcare and pharmaceutical retail market in Japan. Satudora operates through two main segments: Retail Business, which includes drugstores and dispensing pharmacies, and IT Solution Business, which encompasses payment services (EZOCA), programming schools, and POS application sales. Additionally, the company engages in wholesale/product development and energy businesses. With a market cap of approximately ¥11.7 billion, Satudora plays a significant role in Japan's pharmaceutical retail sector, leveraging regional marketing and digital solutions to enhance customer engagement. Its diversified business model positions it as a key player in Japan's healthcare and retail landscape.
Satudora Holdings presents a mixed investment profile. The company operates in Japan's stable pharmaceutical retail sector, benefiting from consistent demand for healthcare products. However, its modest market cap (¥11.7B) and low beta (0.052) suggest limited volatility but also lower growth potential compared to larger peers. Revenue stands at ¥95.5B, with net income of ¥470M, reflecting thin margins. Operating cash flow (¥3.54B) and cash reserves (¥2.68B) provide some financial flexibility, but high total debt (¥17.4B) raises leverage concerns. The dividend yield (¥10 per share) may appeal to income-focused investors, but EPS dilution (34.02) indicates modest profitability. Investors should weigh Satudora's regional market presence against intensifying competition and debt levels.
Satudora Holdings competes in Japan's crowded drugstore and pharmacy market, where scale and regional penetration are critical. Its competitive advantage lies in its diversified business model, combining retail pharmacy operations with IT-driven solutions like EZOCA payment services and POS applications. This hybrid approach differentiates Satudora from pure-play pharmacy retailers. However, the company's regional focus (headquartered in Sapporo) limits its national footprint compared to industry giants like Matsumotokiyoshi or Welcia. Satudora's smaller store count (175 drugstores) restricts economies of scale, impacting pricing power and supplier negotiations. The IT Solution segment provides ancillary revenue streams but remains a minor contributor compared to core retail operations. While the company's debt load is manageable, it may constrain expansion against better-capitalized rivals. Satudora's niche lies in integrating digital services with pharmacy retail, but execution risks persist given the dominance of nationwide chains.