| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3202.45 | 52 |
| Intrinsic value (DCF) | 60069.46 | 2746 |
| Graham-Dodd Method | 2119.45 | 0 |
| Graham Formula | 10812.13 | 412 |
Greens Co., Ltd. is a leading Japanese hospitality company specializing in mid-range and budget hotel accommodations. Founded in 1957 and headquartered in Yokkaichi, Japan, the company operates a diverse portfolio of approximately 7,000 hotels under well-known brands such as Comfort Hotel, Comfort Inn, Comfort Suites, Hotel Econo, Green Hotel, and Hotel Espul. Greens Co., Ltd. caters to both business and leisure travelers, offering cost-effective lodging solutions across Japan. The company's strong brand recognition and extensive network position it as a key player in Japan's competitive travel lodging sector. With a market capitalization of approximately ¥31.6 billion, Greens Co., Ltd. continues to expand its footprint, leveraging its operational efficiency and customer-centric approach to maintain a competitive edge in the consumer cyclical industry.
Greens Co., Ltd. presents a stable investment opportunity within Japan's hospitality sector, supported by its extensive hotel network and strong brand portfolio. The company's financials indicate steady revenue growth, with FY2024 revenue reaching ¥40.97 billion and net income of ¥4.89 billion. Its low beta of 0.4 suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, the company operates in a highly competitive industry with thin margins, and its reliance on domestic travel exposes it to fluctuations in Japan's economic conditions. The dividend yield, though modest at ¥23 per share, adds to its attractiveness for income-focused investors. Overall, Greens Co., Ltd. is a solid pick for those seeking exposure to Japan's resilient hospitality market.
Greens Co., Ltd. competes in Japan's crowded mid-range and budget hotel market, where differentiation is key. The company's competitive advantage lies in its extensive brand portfolio and operational scale, with approximately 7,000 properties under management. This allows for cost efficiencies and broad market coverage, appealing to both business and leisure travelers. However, the company faces intense competition from both domestic and international players, which may pressure pricing and occupancy rates. Greens Co., Ltd.'s focus on standardized, no-frills accommodations helps maintain consistent quality, but it may lack the premium appeal of higher-end competitors. The company's strong cash position (¥7.72 billion) and manageable debt (¥12.83 billion) provide financial flexibility, but capital expenditures remain a necessity to maintain and expand its property network. Its ability to adapt to post-pandemic travel trends, such as increased demand for flexible bookings and digital services, will be critical for long-term competitiveness.