| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2692.85 | 77 |
| Intrinsic value (DCF) | 768.90 | -50 |
| Graham-Dodd Method | 1167.04 | -23 |
| Graham Formula | 1581.89 | 4 |
Global Style Co., Ltd. (7126.T) is a Japan-based specialty retailer and manufacturer of high-quality men's and women's apparel, including custom-made suits, shirts, coats, and accessories. Founded in 1928 and headquartered in Osaka, the company operates under brands such as TANGOYA and Global Style, offering premium fabrics and bespoke tailoring services. In addition to its core fashion business, Global Style has diversified into the café and restaurant segment, serving espresso coffee under the Borbone brand. The company, formerly known as Tangoya Co., Ltd., rebranded in November 2022 to reflect its broader market ambitions. With a strong heritage in craftsmanship and retail, Global Style caters to discerning consumers seeking personalized and ready-made fashion solutions. Its dual focus on apparel and hospitality positions it uniquely in Japan's competitive consumer cyclical sector.
Global Style Co., Ltd. presents a niche investment opportunity in Japan's apparel manufacturing and specialty retail sector. The company's diversified revenue streams—spanning custom tailoring, ready-made fashion, and café operations—provide some resilience against market fluctuations. With a market cap of ¥5.45 billion and a beta of 0.39, the stock exhibits lower volatility compared to broader markets. However, challenges include modest net income (¥443.8 million) and high total debt (¥3.04 billion), which could constrain growth. The dividend yield, at ¥30 per share, may appeal to income-focused investors, but the company's ability to sustain payouts amid competitive pressures remains a key consideration. Investors should weigh its strong brand heritage against sector-wide headwinds like declining demand for formalwear.
Global Style Co., Ltd. competes in Japan's fragmented apparel manufacturing and retail sector, where differentiation through craftsmanship and brand loyalty is critical. Its competitive advantage lies in its long-standing reputation for bespoke tailoring and premium fabrics, which appeals to a niche, high-end clientele. The company's dual retail and hospitality model (via Borbone cafés) provides cross-selling opportunities, though this diversification is relatively untested compared to peers. However, Global Style faces intense competition from larger apparel conglomerates with stronger economies of scale and digital retail capabilities. Its debt load (¥3.04 billion) could limit investments in e-commerce or expansion, areas where competitors are aggressively investing. While the TANGOYA brand has regional recognition, it lacks the global reach of luxury rivals. The company's focus on custom-made products insulates it somewhat from fast-fashion pressures but may cap growth in a market increasingly driven by casualization and online shopping trends.