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Stock Analysis & ValuationPARK24 Co., Ltd. (4666.T)

Professional Stock Screener
Previous Close
¥2,154.50
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1985.85-8
Intrinsic value (DCF)1624.37-25
Graham-Dodd Method902.15-58
Graham Formula2182.911

Strategic Investment Analysis

Company Overview

PARK24 Co., Ltd. (4666.T) is a leading Japanese parking and mobility services provider, operating under the well-known 'Times' brand. Founded in 1971 and headquartered in Tokyo, the company manages a diversified portfolio of parking facilities across Japan and internationally, offering hourly, reserved, and monthly parking solutions for both passenger and non-passenger vehicles. Beyond traditional parking, PARK24 has expanded into mobility services, including Times CAR RENTAL, an unattended rent-a-car service, and Times PAY, a payment solution for restaurants and retailers. The company also provides road assistance and insurance agency services. PARK24's integrated approach to urban mobility and parking infrastructure positions it as a key player in Japan's transportation sector, addressing the growing demand for efficient parking solutions in densely populated urban areas. With a market capitalization of approximately ¥333 billion, PARK24 continues to innovate in smart parking and mobility services, leveraging technology to enhance customer convenience.

Investment Summary

PARK24 presents a stable investment opportunity with moderate growth potential, supported by its dominant position in Japan's parking industry and expansion into mobility services. The company's diversified revenue streams, including parking, car rental, and payment services, provide resilience against sector-specific downturns. However, investors should note the company's significant debt (¥144 billion) relative to its cash position (¥48.7 billion), which could pose risks in a rising interest rate environment. The stock's low beta (0.525) suggests lower volatility compared to the broader market, appealing to conservative investors. PARK24's dividend yield, though modest (¥5 per share), adds to its attractiveness. The company's ability to capitalize on urbanization trends and smart city initiatives will be critical for future growth.

Competitive Analysis

PARK24 holds a competitive edge in Japan's parking industry through its extensive network of parking facilities and strong brand recognition under the 'Times' name. The company's integration of mobility services (car rental, payment solutions) differentiates it from traditional parking operators, creating additional revenue streams and customer retention opportunities. PARK24's technological investments in unattended parking and digital payment systems enhance operational efficiency and customer convenience. However, the company faces competition from regional parking operators and emerging mobility-as-a-service (MaaS) providers. Internationally, PARK24's presence is limited compared to global parking giants, restricting its growth potential outside Japan. The company's reliance on Japan's urban parking demand makes it susceptible to local economic fluctuations and regulatory changes. PARK24's competitive advantage lies in its scale and diversification, but it must continue innovating to maintain its leadership in an evolving mobility landscape.

Major Competitors

  • Hulic Co., Ltd. (3284.T): Hulic operates parking facilities as part of its broader real estate portfolio, competing with PARK24 in urban parking markets. While Hulic has a strong presence in commercial real estate, its parking segment lacks the scale and brand recognition of PARK24's 'Times' network. Hulic's integrated property management approach provides synergies but limits its focus on parking innovation.
  • Japan Excellent, Inc. (8917.T): Japan Excellent invests in parking facilities and other real estate assets, offering stable returns but with less operational involvement than PARK24. The company's REIT structure provides financial flexibility but lacks PARK24's direct customer engagement and mobility service offerings. Japan Excellent's passive investment model contrasts with PARK24's active management approach.
  • RENOVA, Inc. (9695.T): RENOVA focuses on renewable energy but has interests in parking facility operations through subsidiaries. Its parking business is smaller and less centralized than PARK24's, with limited brand presence. RENOVA's diversification into energy reduces direct competition but also dilutes its focus on parking services.
  • Oriental Land Co., Ltd. (4661.T): Oriental Land operates parking facilities primarily for its theme parks (e.g., Tokyo Disney Resort), presenting niche competition in leisure destination parking. While its parking operations are sizable, they are tied to specific locations rather than a nationwide network like PARK24's. Oriental Land's focus on tourism limits direct competition in urban parking markets.
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