| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1631.35 | 248 |
| Intrinsic value (DCF) | 331.71 | -29 |
| Graham-Dodd Method | 716.39 | 53 |
| Graham Formula | n/a |
Olympic Group Corporation is a leading Japanese specialty retailer operating under the Olympic brand, offering a diverse range of products including food, daily necessities, sports and leisure goods, pet supplies, bicycles, footwear, and apparel. Founded in 1962 and headquartered in Tokyo, the company operates 68 Olympic stores and 28 specialty stores, catering to Japan's consumer cyclical sector. Olympic Group also engages in insurance agency services, store development, facility management, and the wholesale of side dishes. With additional ventures in veterinary hospitals and food court operations, the company maintains a broad retail footprint. Despite challenges in profitability, Olympic Group remains a key player in Japan's retail landscape, leveraging its multi-category approach and strong regional presence. Its market capitalization of approximately ¥9.33 billion underscores its mid-tier position in the competitive Japanese retail market.
Olympic Group Corporation presents a mixed investment profile. The company operates in Japan's competitive retail sector, with a diversified product range and a stable store footprint. However, its recent financial performance shows a net loss of ¥67 million (diluted EPS of -¥2.92), raising concerns about profitability. Positive operating cash flow of ¥649 million is offset by significant capital expenditures (¥1.62 billion), indicating ongoing investments in store operations. The company's low beta (0.152) suggests lower volatility relative to the market, which may appeal to risk-averse investors. Dividend payments (¥20 per share) provide some income appeal, but high total debt (¥31.83 billion) against cash reserves (¥4.18 billion) warrants caution. Investors should monitor the company's ability to improve margins and manage leverage in a challenging retail environment.
Olympic Group Corporation competes in Japan's fragmented specialty retail sector, where differentiation through product assortment and store experience is critical. The company's multi-category approach (spanning food, DIY, pet supplies, and sports goods) provides some diversification but also exposes it to competition from specialized retailers in each segment. Its mid-sized store footprint (68 Olympic stores + 28 specialty stores) limits economies of scale compared to national giants like Aeon or Don Quijote. Olympic's strength lies in its regional brand recognition and integrated services (including veterinary hospitals and food courts), which enhance customer retention. However, the lack of a strong e-commerce presence compared to rivals like Rakuten or Amazon Japan is a structural weakness. The company's negative net income suggests it struggles with pricing power and operational efficiency in a deflationary retail environment. Its competitive positioning is further pressured by Japan's demographic challenges (aging population, stagnant consumption) and the rise of discount retailers. Olympic's niche in mid-range specialty retail may help it avoid direct competition with value-focused chains, but sustained profitability improvements are needed to justify long-term competitiveness.