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Stock Analysis & ValuationGLOME Holdings,Inc. (8938.T)

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¥371.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)474.5228
Intrinsic value (DCF)367.29-1
Graham-Dodd Method897.75142
Graham Formula543.7747

Strategic Investment Analysis

Company Overview

GLOME Holdings, Inc. (8938.T) is a diversified Japanese company operating in the medical-related and real estate sectors. Headquartered in Tokyo, the company manages medical institutions, hospitals, nursing care facilities, and clinics, while also providing healthcare information services and gold loans. Additionally, GLOME Holdings offers operational support, IT services, and real estate facility management, catering primarily to medical corporations and commercial clients. Formerly known as LC Holdings, Inc., the company rebranded in 2019 to reflect its broader business scope. Despite its real estate classification, GLOME’s operations span healthcare, elderly care, and financial services, positioning it uniquely in Japan’s aging society. With a market cap of ¥6.18 billion, the company faces challenges in profitability but maintains a strong cash position. Its dual focus on healthcare infrastructure and real estate services makes it a niche player in Japan’s evolving socio-economic landscape.

Investment Summary

GLOME Holdings presents a high-risk, high-reward investment case due to its diversified but unprofitable operations. The company’s negative net income (-¥198M) and operating cash flow (-¥187M) raise concerns, though its substantial cash reserves (¥2.77B) provide a buffer. With a beta of 1.524, the stock is highly volatile, likely reflecting its mixed performance across healthcare and real estate segments. The modest dividend yield (¥2/share) offers limited income appeal. Investors should weigh GLOME’s exposure to Japan’s growing elderly care demand against its operational inefficiencies and debt (¥743M). The stock may appeal to speculative investors betting on healthcare sector consolidation or real estate recovery in Japan.

Competitive Analysis

GLOME Holdings operates in a fragmented market with competition from specialized healthcare providers and real estate service firms. Its competitive advantage lies in its integrated model combining medical facilities with real estate management—a rare synergy in Japan’s siloed industries. However, its lack of profitability (-¥21.88 EPS) undermines this positioning. In healthcare, GLOME lacks the scale of major hospital chains, while in real estate services, it competes with larger property management firms. The company’s gold loan segment is a differentiator but contributes minimally to revenue (¥1.24B total). GLOME’s main strength is its niche focus on medical facility support, where it provides end-to-end solutions from staffing to IT. Yet, its high beta suggests market skepticism about execution. To improve competitiveness, GLOME must streamline loss-making units and leverage its healthcare-real estate crossover more effectively in Japan’s aging economy.

Major Competitors

  • Hoshino Resorts REIT, Inc. (3287.T): Hoshino Resorts REIT focuses on hospitality-linked real estate, a less diversified model than GLOME’s. Its strength lies in premium resort properties, but it lacks GLOME’s healthcare exposure. Financially, it’s more stable with consistent dividends.
  • Nihon M&A Center Inc. (2349.T): A specialist in SME M&A advisory, Nihon M&A overlaps with GLOME’s business support services. It’s more profitable but doesn’t compete directly in healthcare or real estate operations. Its corporate client base is a strength GLOME lacks.
  • Hoshizaki Healthcare Corporation (3284.T): A pure-play healthcare operator, Hoshizaki outperforms GLOME in medical facility management but has no real estate segment. Its larger scale (¥30B+ revenue) makes it a formidable competitor in GLOME’s core healthcare services.
  • CRE Logistics REIT, Inc. (3458.T): This logistics-focused REIT competes for real estate investment dollars but operates in a different niche than GLOME’s medical-commercial properties. Its stronger financials (positive NOI) highlight GLOME’s real estate segment weaknesses.
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