| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 406.58 | 213 |
| Graham Formula | 206.24 | 59 |
Kyoritsu Printing Co., Ltd. (7838.T) is a leading Japanese printing company specializing in a diverse range of commercial and promotional printing services. Headquartered in Tokyo and founded in 1980, the company serves businesses across Japan with high-quality printing solutions, including flyers, catalogs, publishing materials, direct mail, and packaging. Kyoritsu Printing operates in the Specialty Business Services sector, catering to industries such as retail, publishing, advertising, and corporate communications. The company’s expertise in producing promotional materials like New Year’s cards, banners, and POP displays positions it as a key player in Japan’s commercial printing market. With a strong focus on traditional and digital printing services, Kyoritsu Printing leverages its decades of experience to meet the evolving needs of clients in a competitive industry. The company also engages in real estate leasing and bookbinding, diversifying its revenue streams. As businesses continue to rely on printed marketing materials despite digital trends, Kyoritsu Printing remains a relevant and trusted provider in Japan’s industrial printing landscape.
Kyoritsu Printing presents a stable but low-growth investment opportunity, primarily due to its niche position in Japan’s mature printing industry. The company reported revenue of ¥37.8 billion and net income of ¥866 million in FY 2022, with a diluted EPS of ¥19.08. While its beta of 0.61 suggests lower volatility compared to the broader market, the printing industry faces structural challenges from digitalization, which may limit long-term growth. The company maintains a solid cash position (¥12.9 billion) but carries significant debt (¥15.8 billion), which could constrain financial flexibility. Dividend investors may find the ¥115.5 per share payout attractive, but overall, Kyoritsu Printing is best suited for conservative investors seeking exposure to a stable, domestically focused industrial business with moderate profitability.
Kyoritsu Printing operates in a highly competitive and fragmented Japanese printing industry, where differentiation is often based on service quality, turnaround time, and cost efficiency. The company’s competitive advantage lies in its broad service portfolio, which includes promotional materials, publishing, and packaging—allowing it to serve diverse client needs under one roof. However, the industry is under pressure from digital alternatives, reducing demand for traditional print media. Kyoritsu’s regional focus in Japan limits its exposure to international markets, unlike larger global competitors. Its financials indicate stable but modest profitability, with operating cash flow of ¥2.97 billion in FY 2022, supporting ongoing operations but offering limited room for aggressive expansion. The company’s real estate leasing segment provides ancillary revenue, but its core printing business remains susceptible to economic cycles and advertising budget fluctuations. While Kyoritsu benefits from long-standing client relationships, it must continuously invest in technology to remain competitive against both traditional rivals and digital marketing platforms.