| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 121.35 | -65 |
| Intrinsic value (DCF) | 96.00 | -72 |
| Graham-Dodd Method | 20.99 | -94 |
| Graham Formula | n/a |
TAYA Co., Ltd. is a Japan-based company specializing in beauty salon operations, with a network of 120 salons and one retail shop as of March 2021. Founded in 1964 and headquartered in Tokyo, the company operates in the Personal Products & Services sector, catering to the consumer cyclical market. TAYA focuses on providing high-quality beauty and grooming services, leveraging Japan's strong beauty and wellness culture. Despite challenges in profitability, the company maintains a presence in a competitive industry where brand reputation and customer loyalty are key. With a market capitalization of approximately ¥1.25 billion, TAYA continues to navigate the evolving beauty services landscape, where trends such as personalized care and digital booking platforms are reshaping consumer expectations.
TAYA Co., Ltd. presents a mixed investment profile. The company operates in a stable but highly competitive industry, with a well-established presence in Japan's beauty salon market. However, recent financials indicate challenges, including a net loss of ¥158.8 million and negative operating cash flow of ¥25.4 million in the latest fiscal year. The lack of dividends and weak earnings per share (-¥31.78) may deter income-focused investors. On the positive side, the company's low beta (0.126) suggests lower volatility compared to the broader market, which could appeal to risk-averse investors. The beauty industry's resilience and Japan's aging population (which may drive demand for grooming services) offer long-term opportunities, but TAYA must improve operational efficiency and profitability to attract growth-oriented investors.
TAYA Co., Ltd. operates in Japan's fragmented beauty salon industry, competing with both independent salons and larger chains. The company's competitive advantage lies in its long-standing brand recognition (founded in 1964) and extensive network of 120 salons, which provide localized customer access. However, its financial struggles (negative net income and cash flow) indicate operational inefficiencies or pricing pressures. Unlike some competitors that have diversified into premium or specialized services (e.g., medical aesthetics or eco-friendly products), TAYA appears focused on traditional salon offerings, which may limit differentiation. The company's small market cap (¥1.25 billion) also restricts its ability to invest in digital transformation or aggressive expansion compared to larger rivals. Success in this industry depends on customer retention, stylist talent, and cost management—areas where TAYA must improve to regain competitiveness. The lack of an e-commerce or subscription-based revenue model further weakens its positioning against tech-savvy competitors.