| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1069.81 | -27 |
| Intrinsic value (DCF) | 628.00 | -57 |
| Graham-Dodd Method | 1350.39 | -7 |
| Graham Formula | 1450.77 | 0 |
Kaname Kogyo Co., Ltd. is a leading Japanese waste management company specializing in the collection, transportation, and disposal of general and industrial waste, along with recycling services. Founded in 1972 and headquartered in Tokyo, the company plays a crucial role in Japan's environmental sustainability efforts, addressing the growing demand for efficient waste disposal and recycling solutions. Operating in the Industrials sector, Kaname Kogyo serves both municipal and industrial clients, ensuring compliance with stringent environmental regulations. With a market capitalization of approximately ¥16.2 billion, the company has demonstrated steady financial performance, supported by a strong cash position and low debt levels. Kaname Kogyo's commitment to eco-friendly practices positions it as a key player in Japan's circular economy, making it an attractive option for investors focused on sustainable industrial solutions.
Kaname Kogyo presents a stable investment opportunity within Japan's waste management sector, characterized by consistent revenue streams and a strong balance sheet. The company's low beta (0.206) suggests lower volatility compared to the broader market, appealing to risk-averse investors. With a net income of ¥1.29 billion and an operating cash flow of ¥1.81 billion, Kaname Kogyo demonstrates solid profitability and cash generation. However, the company operates in a highly regulated and competitive industry, which may limit margin expansion. The dividend yield, supported by a ¥26 per share payout, adds income appeal. Investors should weigh the company's stable cash flows against potential regulatory risks and the capital-intensive nature of waste management operations.
Kaname Kogyo competes in Japan's waste management industry, where regulatory compliance and operational efficiency are critical. The company's competitive advantage lies in its established infrastructure and expertise in waste collection, disposal, and recycling, serving both industrial and municipal clients. Its strong cash position (¥5.78 billion) and manageable debt (¥1.46 billion) provide financial flexibility to invest in recycling technologies and expand service offerings. However, the industry is fragmented, with competition from larger players like Daiseki Co., Ltd. and smaller regional operators. Kaname Kogyo's focus on Tokyo and surrounding areas limits geographic diversification but allows for deep market penetration. The company's ability to maintain profitability in a low-margin industry highlights its operational efficiency, though it may face challenges scaling beyond its core regions without significant capital expenditure.