| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 6057.04 | 93 |
| Intrinsic value (DCF) | 10044.91 | 220 |
| Graham-Dodd Method | 1304.95 | -58 |
| Graham Formula | 3205.61 | 2 |
World Co., Ltd. (3612.T) is a leading Japanese fashion and lifestyle retail company headquartered in Kobe. Established in 1959, the company operates across multiple segments, including women's and men's apparel, accessories, interior products, and lifestyle goods under brands like adabat, HIROKO HAYASHI, and HIROFU. World Co. also engages in franchise operations, e-commerce, and select second-hand designer brand shops, catering to diverse consumer demographics from teenagers to professionals. The company has expanded internationally, notably with its TAKEO KIKUCHI men's brand in Thailand. Additionally, World Co. provides business solutions, consulting services, and administrative support for corporate clients, reinforcing its integrated supply chain and retail expertise. With a market cap of ¥85.7 billion, the company remains a key player in Japan's consumer cyclical sector, balancing traditional retail with digital and experiential commerce.
World Co., Ltd. presents a stable investment opportunity within Japan's consumer cyclical sector, supported by diversified revenue streams from apparel, lifestyle goods, and retail operations. The company's net income of ¥11.1 billion and diluted EPS of ¥319.17 reflect profitability, while its low beta (0.183) suggests lower volatility relative to the market. However, high total debt (¥131.9 billion) and modest operating cash flow (¥31.9 billion) warrant caution. The dividend yield (~2.5% based on an ¥80/share payout) adds appeal for income-focused investors. Risks include exposure to Japan's stagnant retail market and reliance on domestic demand, offset by niche international ventures like its Thai men's brand expansion.
World Co. competes in Japan's fragmented apparel and department store sector by leveraging vertical integration—spanning design, manufacturing, and retail—to control costs and maintain brand consistency. Its multi-brand strategy (e.g., adabat, HIROKO HAYASHI) targets diverse demographics, while off-price and e-commerce channels mitigate reliance on physical stores. Competitors like Fast Retailing (Uniqlo) dominate mass-market basics, but World Co. differentiates with mid-to-premium fashion and lifestyle curation. Weaknesses include limited global scale compared to rivals like Onward Holdings and a debt-heavy balance sheet. The company’s consulting and B2B services provide ancillary revenue but face competition from specialized firms. Its Thailand expansion signals growth potential, though execution risks persist.