| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1343.34 | 63 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | 1085.13 | 31 |
| Graham Formula | 1014.45 | 23 |
Handsman Co., Ltd. (7636.T) is a leading Japanese specialty retailer operating DIY home centers under the Handsman brand. Founded in 1914 and headquartered in Miyakonojo, Japan, the company provides a wide range of tools, hardware, and home improvement products catering to both professional contractors and DIY enthusiasts. As part of the consumer cyclical sector, Handsman plays a vital role in Japan's home improvement and construction markets, offering essential products for maintenance, renovation, and small-scale construction projects. The company's retail model focuses on accessibility and product variety, serving regional markets across Japan. With a market capitalization of approximately ¥11.2 billion, Handsman maintains a stable presence in Japan's competitive DIY retail landscape. The company's long history and specialized focus position it as a trusted brand among Japanese consumers seeking quality home improvement solutions.
Handsman Co., Ltd. presents a stable investment opportunity within Japan's niche DIY retail market, supported by its long-standing brand presence and regional focus. The company's low beta (0.56) suggests relative stability compared to broader market movements, potentially appealing to risk-averse investors. Financial metrics show modest profitability with ¥789 million net income on ¥34.1 billion revenue, though capital expenditures (-¥2.01 billion) currently outweigh operating cash flow (¥1.23 billion), indicating ongoing investment needs. The dividend yield appears reasonable with ¥30 per share payout. While not a high-growth opportunity, Handsman's established market position and consistent demand for home improvement products in Japan's aging housing stock provide defensive characteristics. Investors should monitor the company's ability to maintain margins amid competitive pressures and Japan's demographic challenges.
Handsman operates in Japan's competitive DIY retail sector, competing against both specialized home center chains and general merchandise retailers. The company's primary competitive advantage lies in its regional focus and specialized product assortment tailored to Japanese consumers' needs. Unlike larger national chains, Handsman's smaller scale allows for localized merchandising and potentially stronger community relationships. However, this regional focus also limits its economies of scale compared to nationwide competitors. The company's 109-year history contributes to brand recognition in its operating regions. Handsman's product mix appears more concentrated on core DIY categories compared to competitors who may carry broader home goods assortments. Financially, the company maintains moderate leverage (¥4.05 billion debt against ¥1.63 billion cash), suggesting a balanced capital structure. The competitive landscape is intensifying as larger players expand their private label offerings and digital capabilities—areas where Handsman may need to invest to maintain competitiveness. The company's ability to differentiate through service expertise and localized product selection will be crucial against larger rivals with greater purchasing power.