| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3749.05 | 327 |
| Intrinsic value (DCF) | 331.62 | -62 |
| Graham-Dodd Method | 1033.52 | 18 |
| Graham Formula | 91.24 | -90 |
HIMARAYA Co., Ltd. is a leading Japanese specialty retailer of sporting goods, headquartered in Gifu, Japan. Founded in 1976, the company operates in the consumer cyclical sector, offering a diverse range of products including sports apparel, footwear, outdoor gear, and equipment for activities such as tennis, baseball, soccer, golf, and marine sports. HIMARAYA caters to both casual and professional athletes, with a strong presence in fitness, hiking, skiing, and snowboarding segments. The company’s retail strategy focuses on providing high-quality, performance-driven products, positioning it as a key player in Japan’s sporting goods market. With a market capitalization of approximately ¥10.25 billion, HIMARAYA continues to leverage its brand recognition and extensive product portfolio to serve Japan’s active consumer base. The company’s financial stability, reflected in its ¥58.5 billion revenue and ¥206 million net income (FY 2024), underscores its resilience in a competitive retail landscape.
HIMARAYA Co., Ltd. presents a moderate investment opportunity with stable revenue streams and a niche focus on Japan’s sporting goods retail sector. The company’s low beta (0.325) suggests lower volatility compared to the broader market, making it a relatively defensive play in consumer cyclicals. However, its modest net income margin (~0.35%) and high debt-to-equity ratio (¥5.15 billion total debt vs. ¥4.12 billion cash) raise concerns about profitability and financial leverage. The dividend yield (~2.5% based on ¥26/share) provides income appeal, but growth prospects may be limited due to Japan’s aging population and stagnant retail spending. Investors should weigh its established market presence against structural challenges in Japan’s retail sector.
HIMARAYA Co., Ltd. competes in Japan’s fragmented sporting goods retail market, where differentiation is driven by product assortment, pricing, and customer experience. The company’s competitive advantage lies in its specialized focus on diverse sports categories, including niche segments like marine sports and outdoor equipment, which larger general retailers may not prioritize. However, its scale is dwarfed by global giants like Alpen Group and domestic broadline retailers like Aeon. HIMARAYA’s regional store footprint (primarily in Gifu and surrounding areas) limits national reach compared to nationwide chains. Its financials indicate thin margins, likely due to pricing pressure from e-commerce players and discount retailers. The company’s reliance on brick-and-mortar sales also exposes it to shifting consumer preferences toward online shopping. While its product expertise and loyal customer base provide stability, HIMARAYA lacks the omnichannel capabilities and brand partnerships of larger rivals, constraining its ability to capitalize on Japan’s growing fitness and outdoor trends.