| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1488.80 | -53 |
| Intrinsic value (DCF) | 593.00 | -81 |
| Graham-Dodd Method | 1097.29 | -65 |
| Graham Formula | 493.26 | -84 |
Mandom Corporation (4917.T) is a leading Japanese manufacturer of cosmetics, perfumes, and quasi-drugs, with a strong presence in Japan, Indonesia, and international markets. Founded in 1927 and headquartered in Osaka, the company operates under well-known brands such as Gatsby, Lúcido, Bifesta, Pixy, and Pucelle, catering to both men's and women's grooming needs. Mandom's product portfolio includes hair styling, skin care, body care, and hair coloring products, distributed primarily through drug stores and convenience stores. The company also provides professional-use products to hair salons and engages in insurance agency and travel services. With a market capitalization of approximately ¥60.3 billion, Mandom is a key player in the Household & Personal Products sector, known for its innovation and strong brand loyalty in the competitive Japanese consumer defensive market.
Mandom Corporation presents a stable investment opportunity within the consumer defensive sector, supported by its well-established brands and consistent revenue streams. The company's low beta of 0.104 indicates lower volatility compared to the broader market, appealing to risk-averse investors. With a net income of ¥2.6 billion and a diluted EPS of ¥57.84, Mandom demonstrates profitability, further bolstered by a healthy operating cash flow of ¥6.8 billion. The company's strong cash position (¥26.98 billion) and minimal total debt (¥102 million) provide financial flexibility. However, growth may be constrained by its heavy reliance on the Japanese market and intense competition from global and domestic players. The dividend yield, with a payout of ¥40 per share, adds to its attractiveness for income-focused investors.
Mandom Corporation competes in the highly competitive Japanese personal care market, where it differentiates itself through strong brand recognition and a diversified product portfolio. Its Gatsby and Lúcido brands are particularly dominant in men's grooming, while Bifesta and Pixy cater to women's beauty needs. The company's competitive advantage lies in its deep understanding of local consumer preferences and its extensive distribution network across drug and convenience stores. However, Mandom faces stiff competition from global giants like Shiseido and Kao, which have broader international reach and higher R&D budgets. Additionally, the rise of e-commerce and direct-to-consumer brands poses a challenge to Mandom's traditional distribution model. The company's focus on quasi-drugs and professional salon products provides niche opportunities, but its limited global presence compared to rivals may hinder long-term growth prospects. Strengthening its digital presence and expanding into emerging markets could be key to maintaining competitiveness.