| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 468.56 | 127 |
| Intrinsic value (DCF) | 143.40 | -30 |
| Graham-Dodd Method | 174.47 | -15 |
| Graham Formula | 46.61 | -77 |
Chukyoiyakuhin Co., Ltd. is a diversified Japanese company operating primarily in the pharmaceuticals, health food, and consumer goods sectors. Founded in 1949 and headquartered in Handa, Japan, the company engages in a broad range of businesses, including the manufacture and sale of quasi-drugs, health food products, soft drinks, medical equipment, cosmetics, daily necessities, clothing, and food. Additionally, Chukyoiyakuhin provides life and non-life insurance services, reflecting its expansive business model. The company also produces sterilization alcohol products and water, further diversifying its revenue streams. Operating in the consumer cyclical sector, Chukyoiyakuhin serves a wide customer base through its department store-like approach to health and wellness products. With a market capitalization of approximately ¥2.14 billion, the company plays a niche but significant role in Japan's consumer and pharmaceutical markets. Its diversified portfolio allows it to mitigate risks associated with any single industry segment, though its financial performance has recently faced challenges, including a net loss in the latest fiscal year.
Chukyoiyakuhin Co., Ltd. presents a mixed investment profile. The company's diversified business model across pharmaceuticals, health foods, and consumer goods provides some resilience against sector-specific downturns. However, its recent financial performance raises concerns, with a net loss of ¥27.3 million and negative diluted EPS of -¥2.57 for FY 2024. The company maintains a modest operating cash flow of ¥171.9 million and a solid cash position of ¥1.1 billion, which could support short-term operations. Its low beta of 0.25 suggests lower volatility compared to the broader market, potentially appealing to risk-averse investors. The dividend yield, with a ¥5 per share payout, may attract income-focused investors, but the negative earnings cast doubt on sustainability. Investors should weigh the company's diversified revenue streams against its recent profitability challenges and high total debt of ¥1.19 billion.
Chukyoiyakuhin Co., Ltd. operates in a highly competitive landscape, competing with both specialized pharmaceutical firms and broader consumer goods companies. Its competitive advantage lies in its diversified product portfolio, which spans health foods, quasi-drugs, cosmetics, and insurance services. This diversification allows the company to cross-sell products and capture multiple consumer needs under one brand. However, its broad focus may also dilute its competitive edge against specialized players with deeper expertise in individual segments. The company's presence in sterilization alcohol and water production provides niche revenue streams but faces competition from larger, more established manufacturers. Financially, Chukyoiyakuhin's recent net loss and high debt levels (¥1.19 billion) weaken its competitive positioning compared to more profitable peers. Its small market cap (¥2.14 billion) limits its ability to invest aggressively in R&D or marketing, putting it at a disadvantage against larger competitors. The company's strength lies in its long-standing presence in Japan (founded in 1949) and its diversified approach, but it must address profitability and debt to strengthen its market position.