| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4003.01 | 58 |
| Intrinsic value (DCF) | 1061.41 | -58 |
| Graham-Dodd Method | 1325.29 | -48 |
| Graham Formula | 1995.72 | -21 |
Iceco Inc. (7698.T) is a leading Japanese wholesale distributor specializing in ice creams and frozen foods for commercial use in retail stores, including drugstores and supermarkets. Founded in 1948 and headquartered in Yokohama, the company also operates its own retail outlets under the Super Senkan TAIGA brand, focusing on fresh produce such as fruits, vegetables, fish, and meat. Operating in the Consumer Defensive sector, Iceco plays a critical role in Japan's food distribution industry by ensuring high-quality frozen and fresh food products reach consumers efficiently. With a market capitalization of ¥7.14 billion, Iceco leverages its long-standing industry expertise to maintain a stable presence in Japan's competitive food retail and wholesale market. The company's dual focus on wholesale distribution and retail operations provides diversified revenue streams, making it a resilient player in the sector.
Iceco Inc. presents a stable investment opportunity within Japan's food distribution sector, supported by its established wholesale and retail operations. The company's modest net income of ¥318.87 million and diluted EPS of ¥162.23 reflect steady but conservative financial performance. With a negative beta of -0.35, Iceco exhibits low correlation with broader market movements, potentially offering defensive characteristics. However, investors should note the company's thin operating cash flow (¥1.67 billion) relative to its revenue (¥50.5 billion), which may indicate margin pressures. The dividend yield, based on a ¥19.5 per share payout, could appeal to income-focused investors, but the company's growth prospects appear limited given its niche focus and modest capital expenditures (¥1.14 billion).
Iceco Inc. operates in a highly competitive segment of Japan's food distribution industry, where scale and supply chain efficiency are critical. The company's competitive advantage lies in its long-standing relationships with retail clients and its vertically integrated retail operations under the Super Senkan TAIGA brand. However, Iceco faces intense competition from larger food wholesalers and retail chains that benefit from economies of scale and broader product portfolios. The company's specialization in frozen foods and ice cream provides differentiation but also limits diversification. While its negative beta suggests resilience during market downturns, Iceco's relatively small market cap (¥7.14 billion) may hinder its ability to compete aggressively with industry giants. The company's capital expenditures are modest, indicating a focus on maintaining rather than expanding its market share. To sustain competitiveness, Iceco must continue optimizing its supply chain and potentially explore strategic partnerships or niche market expansions.