| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1754.49 | 101 |
| Intrinsic value (DCF) | 292.67 | -67 |
| Graham-Dodd Method | 1356.49 | 55 |
| Graham Formula | 460.47 | -47 |
Cleanup Corporation (7955.T) is a leading Japanese manufacturer and retailer of high-quality kitchen and bath equipment, commercial kitchen solutions, and household fixtures. Founded in 1949 and headquartered in Tokyo, the company operates primarily under its CENTRO and STEDIA brands, offering a comprehensive range of products including kitchen systems, sinks, gas stoves, bathroom fixtures, and commercial-grade appliances. With approximately 102 showrooms across Japan and international markets, Cleanup serves both residential and commercial customers, emphasizing functionality, durability, and modern design. As part of the Consumer Cyclical sector and Furnishings, Fixtures & Appliances industry, Cleanup benefits from Japan's strong housing market and demand for premium home improvement products. The company's vertically integrated operations and strong brand recognition position it as a key player in Japan's domestic market while expanding its footprint in global markets.
Cleanup Corporation presents a stable investment opportunity with moderate growth potential, supported by its strong brand presence in Japan's home fixtures market. The company's low beta (0.384) suggests relative resilience to market volatility, while its dividend yield (approximately 1.8% based on current share price) offers income appeal. However, investors should note the modest net income margin (~1.1%) and significant capital expenditures (JPY -6.05 billion), which may pressure short-term profitability. The company's solid cash position (JPY 18.08 billion) and manageable debt (JPY 5.76 billion) provide financial flexibility. Growth prospects depend on international expansion and premium product adoption, but competition in Japan's mature home fixtures market could limit upside.
Cleanup Corporation competes in Japan's highly fragmented home fixtures market by leveraging its strong brand equity (CENTRO/STEDIA) and vertically integrated manufacturing-distribution model. Its primary competitive advantage lies in product durability and after-sales service—critical factors in Japan's quality-conscious market. The company's showroom-centric retail strategy enables superior customer experience compared to purely online competitors, though this results in higher fixed costs. In commercial kitchen equipment, Cleanup faces intense competition from industrial suppliers but maintains niche strength in small-to-medium business solutions. While lacking the global scale of multinational rivals, Cleanup's deep understanding of Japanese housing specifications (e.g., compact space optimization) provides localization advantages. The main competitive vulnerability is limited product innovation compared to tech-forward appliance manufacturers, potentially ceding smart-home integration opportunities. Financially, Cleanup's operating cash flow (JPY 2.43 billion) suggests adequate but not exceptional operational efficiency versus peers.