| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1012.22 | 3 |
| Intrinsic value (DCF) | 376.00 | -62 |
| Graham-Dodd Method | 2551.70 | 160 |
| Graham Formula | 332.28 | -66 |
Katakura & Co-op Agri Corporation (4031.T) is a diversified Japanese company operating in agricultural inputs, cosmetics, chemicals, feed, and real estate. Founded in 1920 and headquartered in Tokyo, the company specializes in providing a wide range of agricultural materials, including chemical and organic fertilizers, soil cultivation products, and microbial materials. Additionally, Katakura supplies industrial and food-grade phosphoric acids, feed ingredients, and health-maintaining raw materials for livestock. The company also engages in cosmetic raw material development, manufacturing synthetic mica, collagen, and plant extracts, alongside offering freeze-dried cosmetics contract manufacturing. With services extending to soil and compost analysis, pesticide residue testing, and DNA analysis, Katakura serves both domestic and international markets. Despite its diversified operations, the company faces challenges in profitability, as reflected in its recent net loss. However, its long-standing industry presence and diversified business model position it as a key player in Japan's agricultural and chemical sectors.
Katakura & Co-op Agri Corporation presents a mixed investment profile. The company operates in stable industries like agricultural inputs and cosmetics, benefiting from Japan's strong agricultural and beauty sectors. However, its recent financial performance shows a net loss of ¥630 million, with negative diluted EPS of -¥70.29, raising concerns about profitability. The company maintains a moderate market cap of ¥7.87 billion and a low beta of 0.477, indicating lower volatility compared to the broader market. Positive operating cash flow of ¥1.52 billion suggests some operational resilience, but high capital expenditures (¥2.27 billion) and significant total debt (¥12.41 billion) pose financial risks. The dividend yield, at ¥20 per share, may appeal to income-focused investors, but sustainability is questionable given current losses. Investors should weigh its diversified business model against its financial challenges before considering an investment.
Katakura & Co-op Agri Corporation operates in highly competitive sectors, including agricultural inputs and cosmetics. In the agricultural segment, its strength lies in offering a broad portfolio of fertilizers and soil products, catering to both conventional and organic farming needs. However, it faces stiff competition from larger global players with stronger R&D capabilities and economies of scale. The company's cosmetic raw materials division competes with specialized chemical firms, where its synthetic mica and collagen products hold niche appeal but may lack the innovation pace of leading beauty ingredient suppliers. Katakura's real estate and feed businesses provide diversification but are not significant differentiators. The company's competitive advantage stems from its long-standing market presence in Japan and integrated supply chain, but its financial struggles limit its ability to invest in growth or technological advancements. To improve positioning, Katakura may need to streamline operations, reduce debt, and focus on higher-margin segments like premium cosmetic ingredients.