| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1482.83 | 31 |
| Intrinsic value (DCF) | 871.93 | -23 |
| Graham-Dodd Method | 359.21 | -68 |
| Graham Formula | 1009.49 | -11 |
Century21 Real Estate of Japan Ltd is a leading franchise real estate company operating in Japan, specializing in residential and commercial property transactions. Founded in 1971 and headquartered in Minato, the company provides comprehensive real estate services, including buying, selling, and financial solutions for franchise offices and their clients. Century21 Japan differentiates itself through robust franchise support, including education and training programs for managers and sales personnel, as well as joint advertising initiatives like TV commercials. The company also implements advanced information systems to enhance operational efficiency. As part of the globally recognized Century 21 brand, the firm benefits from strong brand recognition while catering specifically to the Japanese real estate market. With a market capitalization of approximately ¥11.4 billion, Century21 Real Estate of Japan plays a significant role in Japan's real estate services sector, leveraging its franchise model to maintain a widespread presence across the country.
Century21 Real Estate of Japan presents a stable investment opportunity with low volatility (beta of 0.08) and consistent profitability, reporting net income of ¥674 million in FY2024. The company maintains a strong balance sheet with zero debt and ¥2.1 billion in cash, providing financial flexibility. Its dividend yield is attractive, with ¥45 per share distributed. However, the company operates in a competitive and cyclical real estate market, which may be sensitive to Japan's economic conditions and demographic trends. The franchise model provides scalability but relies heavily on the performance of individual franchisees. Investors should weigh the company's solid financial position against potential market risks in Japan's real estate sector.
Century21 Real Estate of Japan benefits from the global Century 21 brand, which provides strong recognition and trust among consumers. Its franchise model allows for rapid expansion without significant capital expenditure, while its training programs ensure consistent service quality across locations. The company's focus on joint advertising and financial services for franchisees strengthens its network. However, it faces intense competition from both domestic real estate agencies and international franchises operating in Japan. Unlike some competitors that may own property portfolios, Century21 Japan primarily operates as a service provider, which limits diversification but reduces exposure to property market fluctuations. The company's zero-debt position is a competitive advantage, providing stability in uncertain markets. Its localized approach, combined with global branding, positions it well in Japan's unique real estate environment, though it may lack the scale of larger diversified real estate firms.