| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2701.16 | -42 |
| Intrinsic value (DCF) | 9413.20 | 101 |
| Graham-Dodd Method | 1112.40 | -76 |
| Graham Formula | 2484.55 | -47 |
Asakuma Co., Ltd. is a Japan-based restaurant management and franchise company specializing in diverse culinary experiences. Operating under brands like Steak no Asakuma, Ebisu San (Motsuyaki Izakaya), Surabaya (Indonesian cuisine), and Wayambari (Indonesian-style Izakaya), the company caters to varied dining preferences in Japan. Founded in 1948 and headquartered in Nagoya, Asakuma is a subsidiary of Tempos Holdings Co., Ltd. With a market cap of ¥22.45 billion, the company focuses on mid-market dining, blending traditional Japanese and international flavors. Its asset-light franchise model allows for scalability while maintaining localized culinary authenticity. Asakuma operates in Japan's competitive ¥30 trillion+ food service industry, leveraging regional brand recognition and operational efficiency to sustain growth in the post-pandemic recovery phase.
Asakuma presents a niche investment opportunity in Japan’s cyclical restaurant sector, with modest growth potential. Strengths include a diversified brand portfolio (steak, izakaya, and Indonesian cuisine), low debt (¥80.3 million), and a solid cash position (¥2.06 billion). However, the lack of dividends and a negative beta (-0.138) suggest low correlation with market trends, potentially limiting upside. Revenue (¥8.35 billion) and net income (¥567 million) reflect steady but unspectacular performance. Risks include Japan’s aging population reducing dining demand and intense competition from larger chains. The capital-light franchise model is a positive, but reliance on domestic markets and zero dividend policy may deter income-focused investors.
Asakuma competes in Japan’s fragmented restaurant industry by focusing on mid-priced, thematic dining experiences. Its competitive advantage lies in brand diversification (steak, izakaya, and Indonesian cuisine) and regional penetration, avoiding direct competition with mass-market giants like Saizeriya. The franchise model reduces capital intensity, but scale is limited compared to nationwide chains. Asakuma’s negative beta indicates resilience to market swings, possibly due to its niche positioning. However, it lacks international exposure and digital-first strategies (e.g., delivery integration) seen in peers. The subsidiary structure under Tempos Holdings provides stability but may limit aggressive expansion. Competitors range from global QSR brands to local izakaya chains, pressuring Asakuma to differentiate through cuisine authenticity and localized marketing.