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Stock Analysis & ValuationFoodison, Inc. (7114.T)

Professional Stock Screener
Previous Close
¥858.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1198.6240
Intrinsic value (DCF)3991.21365
Graham-Dodd Method665.60-22
Graham Formula505.03-41

Strategic Investment Analysis

Company Overview

Foodison, Inc. (7114.T) is a Tokyo-based food e-commerce and distribution company specializing in restaurant-focused digital marketplaces and seafood retail. Operating primarily under its Uopochi platform, Foodison connects restaurants with suppliers, streamlining procurement for Japan's foodservice industry. The company also runs sakana bacca seafood stores and operates Food Talent Bank, a recruitment service for the food industry. Founded in 2013, Foodison capitalizes on Japan's digital transformation of food distribution, serving as a bridge between traditional food suppliers and modern e-commerce demand. With a market cap of ¥3.46 billion, the company plays in Japan's ¥30 trillion food service market, leveraging technology to improve supply chain efficiency. Its dual focus on B2B e-commerce (Uopochi) and specialty retail (sakana bacca) positions it uniquely in Japan's consumer defensive sector, combining digital innovation with essential food distribution.

Investment Summary

Foodison presents a niche play on Japan's digital transformation of food distribution, with modest scale (¥6.35B revenue) but profitable operations (¥191M net income). The zero dividend policy suggests reinvestment focus, supported by a strong cash position (¥2.34B) relative to debt (¥484M). While the beta of 0.918 indicates lower volatility than the market, investors should weigh Japan's shrinking restaurant sector against Foodison's e-commerce growth potential. Key attractions include the capital-light Uopochi platform and seafood retail diversification, though competition from larger distributors and Japan's demographic challenges pose risks. The 41.1 diluted EPS reflects efficient scaling, but further growth may require expanding beyond current restaurant-centric model.

Competitive Analysis

Foodison's competitive advantage stems from its specialized focus on restaurant food procurement through Uopochi, a niche underserved by Japan's traditional wholesale distributors. The platform's digital efficiency addresses pain points in a still-fragmented supplier market, though it lacks the scale of generalist food distributors. Its sakana bacca stores provide differentiation through premium seafood retailing, but face stiff competition from Japan's ubiquitous fish markets and supermarkets. The company's recruitment arm (Food Talent Bank) creates ecosystem stickiness but isn't a core revenue driver. Financially, Foodison's 3% net margin is respectable for food distribution but trails larger peers. Its true edge lies in tech-enabled SME restaurant servicing - a segment often overlooked by giants like Nissui but vulnerable if incumbents enhance digital capabilities. Geographic concentration in Japan limits risk but also growth potential unless overseas expansion occurs. The capital-light model (low CapEx) supports scalability, but dependence on Japan's shrinking foodservice industry requires either market share gains or vertical expansion to sustain growth.

Major Competitors

  • Nissui Corporation (1332.T): Nissui is a seafood processing giant (¥700B+ revenue) with entrenched relationships that dwarf Foodison's scale. Its weakness lies in slower digital adoption for SME customers, but superior cold chain infrastructure and global sourcing give it cost advantages. Nissui could easily replicate Uopochi's model if restaurant e-commerce gains traction.
  • Suntory Beverage & Food Limited (2587.T): While primarily a beverage company, Suntory's food distribution network overlaps with Foodison's target customers. Its strength is brand power and logistics scale, but lacks Foodison's specialized digital procurement focus. Suntory's B2B platforms are more ingredient-focused than restaurant-centric.
  • Rakuten Delivery (8179.T): Rakuten's food delivery arm competes indirectly by aggregating restaurant demand. Its strength is consumer traffic and tech infrastructure, but lacks Foodison's specialized procurement expertise. Rakuten poses a threat if it expands from meal delivery to ingredient supply chain solutions.
  • MonotaRO Co., Ltd. (3064.T): This B2B e-commerce player shows the scalability potential Foodison could achieve, though MonotaRO focuses on industrial supplies rather than food. Its strength is proven digital wholesale model, but sector specialization gives Foodison deeper restaurant relationships.
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