| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 5151.60 | 53 |
| Intrinsic value (DCF) | 900.07 | -73 |
| Graham-Dodd Method | 5770.92 | 72 |
| Graham Formula | 2731.36 | -19 |
Yagi & Co., Ltd. is a leading Japanese fiber trading company with a rich history dating back to 1893. Headquartered in Osaka, the company specializes in the import, export, and sale of fiber and related products, serving diverse industries including automotive, apparel, and interiors. Yagi & Co. offers a broad product portfolio, encompassing cotton/synthetic yarn, textiles, sportswear, innerwear, bedding, and industrial fiber materials. The company also manufactures and sells raschel knits, twisted yarns, towels, and fashion accessories, while engaging in real estate rentals. With a strong presence in Japan, Yagi & Co. leverages its expertise in fiber trading and textile manufacturing to cater to both domestic and international markets. Its diversified business model and long-standing industry relationships position it as a key player in the consumer cyclical sector, particularly in apparel manufacturing and fiber-based industrial applications.
Yagi & Co. presents a stable investment opportunity with a market capitalization of approximately ¥19.3 billion and a diversified revenue stream of ¥82.8 billion. The company reported a net income of ¥2.08 billion and an EPS of ¥249.46, supported by solid operating cash flow of ¥2.12 billion. However, its high total debt of ¥12.3 billion relative to cash reserves of ¥10.1 billion raises liquidity concerns. The negative beta (-0.184) suggests low correlation with broader market movements, potentially offering defensive characteristics. The dividend yield, with a payout of ¥90 per share, may appeal to income-focused investors. Risks include exposure to cyclical demand in apparel and industrial sectors, as well as competitive pressures in fiber trading. Investors should weigh its established market position against its debt load and industry cyclicality.
Yagi & Co. operates in a competitive landscape dominated by both specialized fiber traders and integrated textile manufacturers. Its competitive advantage lies in its long-standing industry relationships, diversified product portfolio, and expertise in fiber trading across multiple applications (apparel, automotive, industrial). The company’s vertical integration—spanning trading, manufacturing, and real estate—provides resilience against supply chain disruptions. However, its reliance on the Japanese market limits geographic diversification compared to global peers. Competitors with larger scales may benefit from economies of scale in procurement and distribution, while smaller niche players could outperform in specialized segments like high-performance textiles. Yagi’s strength in raschel knits and industrial materials differentiates it from pure-play apparel fabric suppliers. The company’s ability to adapt to trends like sustainable fibers and Femtech products will be critical in maintaining its position against innovators in the textile space.