| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 205.01 | -44 |
| Intrinsic value (DCF) | 937.03 | 156 |
| Graham-Dodd Method | 271.47 | -26 |
| Graham Formula | 71.68 | -80 |
Washhouse Co., Ltd. is a Japanese company specializing in the planning, development, and operation of remotely managed coin-operated laundry stores. Founded in 2001 and headquartered in Miyazaki, Japan, the company has established itself as a key player in Japan's personal services sector, operating 614 stores as of December 2022. Washhouse leverages technology to remotely manage its laundry facilities, ensuring efficiency and cost-effectiveness. The company operates in the consumer cyclical sector, catering to the demand for convenient and affordable laundry solutions in urban and suburban areas. With a market capitalization of approximately ¥2.65 billion, Washhouse focuses on scalability and operational efficiency, positioning itself as a leader in Japan's coin-operated laundry market. The company's business model capitalizes on the growing trend of automated, self-service laundry solutions, particularly in densely populated regions where space and time constraints drive demand for such services.
Washhouse Co., Ltd. presents a niche investment opportunity in Japan's consumer cyclical sector, with a focus on the coin-operated laundry market. The company's remotely managed model offers scalability and operational efficiency, supported by a network of 614 stores. However, the company's financials indicate modest profitability, with a net income of ¥30 million and diluted EPS of ¥4.48 for the fiscal year ending December 2024. The absence of dividends may deter income-focused investors, but the company's strong cash position (¥999 million) and manageable debt (¥778 million) provide financial stability. The low beta (0.738) suggests lower volatility compared to the broader market, making it a relatively stable investment. Investors should weigh the company's growth potential in a mature market against its limited profitability and competitive pressures.
Washhouse Co., Ltd. competes in Japan's coin-operated laundry market, where its primary competitive advantage lies in its remotely managed, technology-driven operational model. This approach reduces labor costs and enhances efficiency, allowing the company to scale its store network effectively. However, the market is fragmented, with numerous local operators and limited barriers to entry. Washhouse's scale (614 stores) provides a competitive edge in terms of brand recognition and operational leverage, but it faces competition from both traditional laundry services and newer, tech-enabled entrants. The company's focus on automation and remote management differentiates it from smaller, labor-intensive competitors, but it must continuously invest in technology to maintain this advantage. Additionally, the consumer cyclical nature of the business exposes Washhouse to economic downturns, which could reduce discretionary spending on laundry services. The company's ability to expand its store network and improve profitability will be critical in sustaining its competitive position.