| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2061.48 | 91 |
| Intrinsic value (DCF) | 411.23 | -62 |
| Graham-Dodd Method | 749.33 | -31 |
| Graham Formula | 723.36 | -33 |
Alleanza Holdings Co., Ltd. (3546.T) is a Japanese consumer cyclical company specializing in home improvement, pet shops, and related businesses. Headquartered in Fukushima, Japan, the company operates in a niche segment of the retail sector, catering to homeowners and pet owners. With a market capitalization of approximately ¥30.17 billion, Alleanza Holdings has established itself as a regional player in Japan's home improvement and pet care markets. The company's diversified business model allows it to tap into multiple consumer needs, from DIY home projects to pet supplies, providing resilience against sector-specific downturns. Despite its relatively recent incorporation in 2016, Alleanza has demonstrated steady revenue growth, reporting ¥153.35 billion in revenue for the latest fiscal year. The company's low beta of 0.167 suggests lower volatility compared to the broader market, making it a potentially stable investment in the consumer cyclical space.
Alleanza Holdings presents a mixed investment profile. On the positive side, the company operates in stable consumer segments (home improvement and pet care) with consistent demand, reflected in its ¥2.09 billion net income and ¥69.29 diluted EPS. Its low beta indicates lower market risk, appealing to conservative investors. However, challenges include moderate leverage (¥27.09 billion total debt) and limited cash reserves (¥4.04 billion), which could constrain growth initiatives. The dividend yield, at ¥38 per share, may attract income-focused investors, but the company's regional focus in Japan limits diversification benefits. Investors should weigh its steady cash flow (¥7.17 billion operating cash flow) against its capital expenditure requirements (¥4.34 billion) and competitive pressures in Japan's crowded home improvement retail sector.
Alleanza Holdings competes in Japan's fragmented home improvement and pet retail markets, where differentiation is key. Its competitive advantage lies in its dual focus on home improvement and pet care, allowing cross-selling opportunities and diversified revenue streams. The company's regional presence in Fukushima provides localized expertise but limits national scale compared to larger rivals. Financially, Alleanza maintains operational efficiency, as seen in its positive net income and cash flow, but its smaller size restricts bargaining power with suppliers. The pet segment benefits from Japan's growing pet ownership trends, while the home improvement business faces stiff competition from DIY giants. Alleanza's modest market cap suggests it operates as a tier-2 player, relying on niche customer loyalty rather than price leadership. Its low beta indicates resilience but may also reflect lower growth expectations compared to more aggressive competitors. The company's ability to sustain profitability in a competitive, low-margin industry will depend on operational execution and potential regional expansion.