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Stock Analysis & ValuationEnigmo Inc. (3665.T)

Professional Stock Screener
Previous Close
¥403.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)377.77-6
Intrinsic value (DCF)272.99-32
Graham-Dodd Method187.75-53
Graham Formula42.80-89

Strategic Investment Analysis

Company Overview

Enigmo Inc. (3665.T) is a Tokyo-based internet business company specializing in e-commerce and digital platforms. Founded in 2004, Enigmo operates BUYMA, a leading marketplace for fashion items sourced from personal shoppers, catering to global consumers. Additionally, the company runs BUYMA TRAVEL, offering private local tours for Japanese travelers abroad, and STYLE HAUS, a content-driven platform for fashion, lifestyle, and cosmetics recommendations. Operating in Japan's competitive e-commerce and software infrastructure sector, Enigmo leverages its niche market positioning to connect buyers with unique, curated products and experiences. With a market cap of approximately ¥11.6 billion, the company focuses on digital innovation and user engagement, capitalizing on Japan's strong e-commerce growth and global fashion demand. Enigmo's diversified platform strategy positions it as a key player in Japan's evolving digital marketplace landscape.

Investment Summary

Enigmo Inc. presents a niche investment opportunity in Japan's e-commerce and digital services sector. With a market cap of ¥11.6 billion and a beta of 0.799, the company exhibits lower volatility compared to broader markets. Revenue of ¥5.93 billion and net income of ¥433 million in FY 2025 reflect steady profitability, supported by a strong cash position (¥9.29 billion) and manageable debt (¥209.7 million). The company's dividend yield, though modest (¥10 per share), adds appeal for income-focused investors. However, risks include intense competition in Japan's e-commerce space and reliance on discretionary consumer spending. Enigmo's growth hinges on expanding its BUYMA and STYLE HAUS platforms internationally, but execution risks and currency fluctuations could impact performance. Investors should weigh its niche positioning against scalability challenges.

Competitive Analysis

Enigmo Inc. competes in Japan's crowded e-commerce and digital services market, differentiating itself through specialized platforms like BUYMA (fashion resale) and BUYMA TRAVEL (niche travel experiences). Its competitive advantage lies in curated, high-touch services that larger players like Rakuten or Mercari do not focus on. However, its smaller scale limits bargaining power with suppliers and advertisers compared to giants like Zozo (3092.T). STYLE HAUS competes with content-driven platforms such as @cosme but lacks the same brand recognition. Enigmo's asset-light model allows agility, but dependence on third-party sellers (BUYMA) introduces quality control risks. The company's ¥9.3 billion cash reserve provides a buffer but may not suffice for aggressive expansion against deep-pocketed rivals. Its main growth avenue is internationalizing BUYMA, though this faces challenges from global players like Vestiaire Collective. In summary, Enigmo's niche focus is both its strength and limitation—it avoids direct clashes with mega-platforms but struggles to achieve similar economies of scale.

Major Competitors

  • Rakuten Group, Inc. (4755.T): Rakuten dominates Japan's e-commerce with its integrated ecosystem (Rakuten Ichiba), far surpassing Enigmo in scale and user base. Strengths include loyalty program synergies and financial services integration. Weaknesses: less focus on curated fashion resale, where Enigmo's BUYMA excels.
  • Zozo, Inc. (3092.T): Zozo is a leader in Japan's online fashion retail (Zozotown), competing directly with Enigmo's BUYMA. Strengths: Strong private-label brands and logistics. Weaknesses: Less emphasis on peer-to-peer resale, giving Enigmo a niche edge in pre-owned luxury.
  • Mercari, Inc. (4385.T): Mercari operates Japan's largest C2C marketplace, overlapping with BUYMA's resale model. Strengths: Massive user base and brand recognition. Weaknesses: Generalist approach lacks Enigmo's fashion-focused curation and concierge services.
  • Yamada Holdings Co., Ltd. (9994.T): Yamada (LABI chains) competes indirectly via electronics/lifestyle e-commerce. Strengths: Offline-online integration. Weaknesses: No focus on high-end fashion resale, leaving BUYMA's niche intact.
  • Vestiaire Collective (): This global peer in luxury resale competes with BUYMA internationally. Strengths: Strong European/US presence. Weaknesses: Limited penetration in Japan, where Enigmo has local trust and logistics advantages.
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