| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 238.17 | 61 |
| Intrinsic value (DCF) | 59.36 | -60 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Retty Inc. (7356.T) is a leading Japanese gourmet platform operator, specializing in restaurant and store discovery through its flagship platform, Retty. Founded in 2010 and headquartered in Tokyo, the company serves as a vital digital intermediary in Japan's highly competitive food and dining industry. Retty's platform aggregates user-generated reviews, reservations, and promotional content, catering to both consumers seeking dining recommendations and businesses aiming to enhance visibility. Operating in the Internet Content & Information sector under Communication Services, Retty competes in Japan's digital food discovery market, which is characterized by high user engagement and mobile adoption. Despite challenges in profitability, the company maintains a strong niche presence with a market cap of approximately ¥2.62 billion (as of latest data). Retty's business model leverages Japan's dense urban dining culture, positioning it as a key player in local discovery platforms.
Retty Inc. presents a mixed investment profile. The company operates in a high-growth niche—Japan's digital food discovery market—but faces profitability challenges, with a net loss of ¥79.9 million in the latest fiscal year and negative operating cash flow. Its modest market cap (¥2.62 billion) and low beta (0.847) suggest relative stability but limited upside potential. The lack of dividends and persistent losses may deter conservative investors, though its strong cash position (¥660.3 million) provides a buffer. Retty's competitive positioning in Japan's crowded restaurant discovery space—competing against giants like Tabelog (owned by Kakaku.com) and Gurunavi—requires careful monitoring of user growth and monetization strategies. Investors should weigh its niche market expertise against sector-wide margin pressures.
Retty Inc. competes in Japan's crowded restaurant discovery and reservation platform market, where differentiation is critical. Its primary competitive advantage lies in its localized user base and community-driven review system, which fosters trust among Japanese consumers. However, the company faces intense competition from well-capitalized rivals like Tabelog (owned by Kakaku.com) and Gurunavi, which benefit from stronger brand recognition and integrated reservation systems. Retty's smaller scale limits its ability to negotiate exclusive partnerships with high-demand restaurants, a key revenue driver in this sector. The platform's mobile-first approach aligns with Japan's high smartphone penetration, but it lacks the AI-driven personalization features increasingly adopted by global competitors. Retty's financials—particularly its negative EPS (-¥5.37) and operating cash flow—highlight challenges in scaling profitably. Its competitive positioning relies heavily on maintaining user engagement, as switching costs in this industry are low. The company's debt-to-cash ratio (¥596.3 million debt vs. ¥660.3 million cash) suggests manageable leverage but underscores the need for improved monetization of its existing user base.