| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1469.30 | 32 |
| Intrinsic value (DCF) | 638.77 | -42 |
| Graham-Dodd Method | 712.87 | -36 |
| Graham Formula | 1892.82 | 71 |
UP GARAGE GROUP Co., Ltd. (7134.T) is a leading Japanese company specializing in the purchase and sale of car and motorcycle supplies, operating under brands like Up Garage, Tire Distribution Center, and Croooober.com. Headquartered in Yokohama, the company serves both domestic and international markets through its physical stores and e-commerce platform. UP GARAGE GROUP focuses on the reuse and resale of automotive parts, including tires, tools, wheels, and even bicycles, while also providing recruitment services for the auto and motorcycle industry. With a strong digital presence via Croooober.com, the company connects global buyers and sellers of used automotive parts, enhancing its market reach. Operating in the consumer cyclical sector, UP GARAGE GROUP capitalizes on Japan’s robust used auto parts market, offering cost-effective and sustainable alternatives to new parts. The company’s diversified business model—spanning retail, wholesale, and e-commerce—positions it as a key player in Japan’s auto dealership industry.
UP GARAGE GROUP presents an intriguing investment opportunity due to its niche focus on the used auto and motorcycle parts market, which benefits from cost-conscious consumers and sustainability trends. The company’s diversified revenue streams—including e-commerce (Croooober.com), retail stores, and wholesale—provide stability. Financially, it maintains a solid cash position (¥2.28B) with manageable debt (¥380M) and consistent profitability (net income of ¥639M in FY2024). However, its low beta (0.32) suggests limited volatility but also lower growth correlation with broader markets. The dividend yield (implied by ¥73/share) may appeal to income-focused investors, though reliance on Japan’s domestic market and cyclical consumer demand poses risks. Investors should weigh its strong cash flow generation against potential challenges in scaling its e-commerce platform globally.
UP GARAGE GROUP’s competitive advantage lies in its vertically integrated model combining physical retail (Up Garage stores) with a global e-commerce platform (Croooober.com), creating a unique omnichannel presence in the used auto parts sector. Its specialization in reused parts differentiates it from traditional auto dealerships, appealing to budget-conscious and eco-friendly consumers. The company’s Tire Distribution Center brand further strengthens its foothold in the high-demand tire market. However, competition is intense in Japan’s auto aftermarket, where larger players like Autobacs Seven and Yellow Hat dominate with broader service offerings. UP GARAGE’s e-commerce expansion faces rivals like Mercari and Rakuten in the secondhand goods space, though its auto-specific focus provides niche defensibility. The company’s asset-light model (low capex at -¥223M) supports margins, but reliance on Japan’s aging vehicle fleet could limit long-term growth unless international e-commerce scales significantly. Its recruitment services for auto businesses add a sticky B2B revenue stream, though this segment is less scalable than core retail operations.