| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4096.62 | 6 |
| Intrinsic value (DCF) | 1737.10 | -55 |
| Graham-Dodd Method | 3330.42 | -14 |
| Graham Formula | 5474.27 | 41 |
ZERO Co., Ltd. (9028.T) is a leading Japanese provider of vehicle transportation and maintenance services, operating primarily in the auto dealership sector. Headquartered in Kawasaki, the company offers a comprehensive suite of services, including new and used vehicle transportation, door-to-door car and motorbike delivery, maintenance, auto auction handling, and vehicle inspection. Additionally, ZERO Co. provides logistics solutions such as port transportation, warehousing, and customs clearance, along with human resources services like temporary staffing and placement. Formerly known as Nissan Transportation Co. Ltd., the company rebranded in 2001 and has since expanded its operations to include used car and auto parts exports. With a market capitalization of approximately ¥50.5 billion, ZERO Co. plays a critical role in Japan's automotive logistics and aftermarket services, catering to both individual and commercial clients. Its diversified service portfolio positions it as a key player in Japan's consumer cyclical sector.
ZERO Co., Ltd. presents a stable investment opportunity with moderate growth potential in Japan's automotive logistics and maintenance sector. The company boasts a solid financial position, with ¥140.8 billion in revenue and ¥4.2 billion in net income for the latest fiscal period. Its low beta (0.248) suggests lower volatility compared to the broader market, making it an attractive option for risk-averse investors. The company generates healthy operating cash flow (¥11.2 billion) and maintains a reasonable debt-to-equity structure. However, its growth may be constrained by Japan's mature automotive market and competitive industry landscape. The dividend yield, supported by a ¥89.4 per share payout, adds income appeal. Investors should weigh its steady cash flow against limited international expansion opportunities.
ZERO Co., Ltd. holds a competitive edge in Japan's vehicle transportation and maintenance sector through its integrated service offerings and established logistics network. Unlike pure-play logistics firms, ZERO combines transportation, auction handling, maintenance, and staffing services, creating cross-selling opportunities and customer stickiness. Its historical ties to Nissan (as its former transport arm) provide residual brand trust in the domestic market. However, the company faces intense competition from larger logistics conglomerates and specialized auto service providers. Its focus on Japan limits exposure to faster-growing Southeast Asian markets, where rivals are expanding. The company's asset-heavy model (evidenced by ¥2.2 billion in annual capex) creates barriers to entry but also limits margin flexibility. ZERO's competitive advantage lies in niche services like auto auction support and door-to-door vehicle transport, where it has operational expertise. Nevertheless, it must continuously invest in fleet modernization and digital platforms to compete with tech-driven logistics disruptors.