| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 3401.90 | -42 |
| Graham Formula | 18381.48 | 212 |
Raysum Co., Ltd. (8890.T) is a Tokyo-based real estate investment company with diversified operations in Japan. Established in 1992 and formerly known as Recrm Research Co., Ltd., Raysum specializes in real estate services while also managing community hostels and a specialized surgery center catering to elderly care. The company operates in Japan's dynamic real estate sector, leveraging its expertise in property investment and healthcare-related services. With a market capitalization of ¥162.26 billion, Raysum demonstrates a balanced portfolio combining stable real estate income with niche healthcare operations. The company's dual focus on property assets and medical services positions it uniquely in Japan's aging society, where demand for both quality real estate and elderly care continues to grow. Raysum's financials reflect a profitable operation with ¥94.27 billion in revenue and ¥11.51 billion net income in its latest fiscal year, supported by strong cash reserves of ¥35.71 billion.
Raysum presents an intriguing investment case with its hybrid real estate and healthcare business model in Japan. The company's negative beta (-0.134) suggests low correlation with broader market movements, potentially offering defensive characteristics. Financial metrics appear solid with ¥406.28 diluted EPS and manageable debt levels (¥54.82 billion) against substantial cash reserves. However, investors should note the relatively low operating cash flow (¥1.49 billion) compared to net income, possibly indicating significant non-cash items in earnings. The real estate focus provides asset-backed security, while the healthcare operations offer growth potential in Japan's aging demographic. Key risks include Japan's stagnant property market and operational challenges in elderly care services. The dividend payout appears substantial but requires verification of sustainability given the cash flow position.
Raysum occupies a unique position in Japan's real estate services sector by combining traditional property investment with healthcare operations. This diversification provides revenue stability but may lack the focus of pure-play competitors. In real estate, the company competes with mid-sized Japanese REITs and property managers, differentiating through its operational assets like hostels. The healthcare segment is small compared to specialized providers but benefits from integration with real estate holdings. Raysum's competitive advantage lies in its niche positioning - its surgery center and hostel operations provide steady cash flows that complement its property investments. However, this hybrid model may lack the scale advantages of larger, specialized competitors in either segment. The company's financial strength (¥35.71 billion cash) provides flexibility for acquisitions or development, but its relatively small market cap limits bargaining power against industry giants. Raysum's challenge is to demonstrate that its diversified model can outperform more focused competitors in both efficiency and growth metrics.