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Stock Analysis & ValuationAucfan Co., Ltd. (3674.T)

Professional Stock Screener
Previous Close
¥338.00
Sector Valuation Confidence Level
High
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)271.53-20
Intrinsic value (DCF)342.411
Graham-Dodd Method517.4153
Graham Formula43.43-87

Strategic Investment Analysis

Company Overview

Aucfan Co., Ltd. (3674.T) is a Tokyo-based e-commerce support solutions provider specializing in market price comparison, B2B wholesale platforms, and business automation tools. Operating in Japan's dynamic e-commerce sector, Aucfan offers services like aucfan (price comparison for online shopping), aucfan Pro.Plus (professional market price search), and NETSEA (B2B wholesale purchasing). The company also provides tools like aucfan connect (Amazon product listing), aucfan robo (RPA automation), and TATEMPO GUIDE (multi-shop management). Aucfan serves both individual sellers and enterprises, positioning itself as a key enabler for Japan's growing digital commerce ecosystem. With a market cap of ¥3.72 billion, the company combines data-driven pricing insights with operational efficiency tools, catering to Japan's ¥27 trillion e-commerce market. Its advisory services for startups further diversify revenue streams in the Communication Services sector.

Investment Summary

Aucfan presents a niche play in Japan's e-commerce infrastructure with modest profitability (¥187M net income) and strong liquidity (¥4.5B cash). The stock's beta of 1.041 suggests market-aligned volatility. While revenue growth potential exists in B2B platforms like NETSEA, the zero dividend policy and ¥1.66B debt warrant caution. Operating cash flow (¥1B) covers debt service, but capex is minimal (-¥9M), possibly limiting innovation. Valuation appears reasonable at 0.77x P/S given sector peers, but competition from Rakuten and Mercari could pressure margins. Suitable for investors seeking Japan-focused digital commerce exposure with moderate risk tolerance.

Competitive Analysis

Aucfan occupies a specialized position between price comparison engines and B2B wholesale platforms, differentiating through integrated tools like aucfan robo (RPA) and TATEMPO GUIDE. Its competitive edge lies in deep pricing data aggregation from Japanese marketplaces, particularly valuable for small merchants. However, scale limitations are evident when compared to global competitors—while Aucfan's ¥4.8B revenue focuses narrowly on Japan, peers like Rakuten operate cross-border platforms. The NETSEA B2B wholesale platform competes with traditional trading companies but lacks their logistics integration. Aucfan's profitability (3.9% net margin) trails sector leaders, suggesting room for operational improvements. Strengths include cash reserves (94% of market cap) for strategic acquisitions and first-mover advantage in Japanese auction price analytics. Key risks are reliance on domestic market (100% Japan revenue) and potential disintermediation by marketplace-native tools from Amazon or Rakuten. The company's startup advisory services provide diversification but remain immaterial to financials.

Major Competitors

  • Rakuten Group, Inc. (4755.T): Rakuten dominates Japan's e-commerce with integrated payments/logistics (¥1.5T revenue). Its Rakuten Ichiba marketplace competes indirectly with Aucfan's price comparison tools. Strengths include brand recognition and fintech ecosystem. Weakness: chronic unprofitability (-¥339B net income).
  • Mercari, Inc. (4385.T): Mercari's C2C marketplace competes in auction analytics (¥159B market cap). Strengths: mobile-first UX and US expansion. Weaknesses: reliance on consumer discretionary spending and ¥9.6B net loss. Unlike Aucfan, lacks B2B wholesale capabilities.
  • Japan Post Holdings Co., Ltd. (6178.T): Japan Post's e-commerce logistics arm competes in last-mile delivery for NETSEA transactions. Strengths: unmatched domestic network. Weaknesses: bureaucratic inefficiencies (2.3% operating margin vs Aucfan's 6.1%).
  • Yamada Holdings Co., Ltd. (9994.T): Yamada's B2B electronics wholesale overlaps with NETSEA BULK MALL. Strengths: physical retail partnerships. Weaknesses: declining brick-and-mortar sales (-3.4% YoY). Aucfan's digital focus provides agility advantage.
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