| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 647.93 | 32 |
| Intrinsic value (DCF) | 6072.05 | 1139 |
| Graham-Dodd Method | 299.99 | -39 |
| Graham Formula | 849.61 | 73 |
MICREED Co., Ltd. is a Tokyo-based company specializing in the mail-order sale of commercial ingredients to small and medium-sized restaurants across Japan. Founded in 1995, MICREED offers a diverse product range, including meat, fish, vegetables, skewers, fried foods, and desserts, catering to the needs of food service businesses. Operating in the Food Distribution sector under the Consumer Defensive industry, the company plays a crucial role in Japan's food supply chain by providing high-quality ingredients efficiently. With a market capitalization of approximately ¥3.07 billion, MICREED has established itself as a reliable supplier in a competitive market. The company's direct-to-business model ensures streamlined logistics and cost-effective solutions for its clients, reinforcing its position in Japan's growing foodservice industry. Investors looking for exposure to Japan's resilient food distribution sector may find MICREED an interesting opportunity due to its niche focus and stable financial performance.
MICREED Co., Ltd. presents a stable investment opportunity within Japan's food distribution sector, supported by its consistent revenue of ¥5.94 billion and net income of ¥222 million in FY 2024. The company's low beta of 0.183 suggests lower volatility compared to the broader market, appealing to risk-averse investors. With no debt and a healthy cash position of ¥842 million, MICREED demonstrates strong financial health. However, its small market cap and niche focus on small and medium restaurants may limit growth scalability compared to larger distributors. The dividend yield, though modest (¥8.2 per share), adds to its defensive appeal. Investors should weigh its stable cash flows against potential challenges from rising food costs and competition in Japan's crowded food distribution market.
MICREED Co., Ltd. competes in Japan's fragmented food distribution industry by focusing exclusively on small and medium-sized restaurants through a mail-order model, which differentiates it from larger broadline distributors. Its competitive advantage lies in its targeted supply chain efficiency and personalized service for smaller clients, who may be underserved by giants like Nissui or Itochu. However, the company's scale is limited compared to industry leaders, restricting its bargaining power with suppliers. MICREED's zero-debt balance sheet and positive operating cash flow (¥378 million in FY 2024) underscore operational stability, but its growth potential may be capped without expansion into adjacent markets or digital commerce enhancements. The lack of international exposure also contrasts with multinational competitors, though this insulates it from global supply chain risks. Its main challenges include competing on price with larger distributors and adapting to Japan's declining restaurant sector amid demographic shifts.