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Stock Analysis & ValuationTrancom Co., Ltd. (9058.T)

Professional Stock Screener
Previous Close
¥10,250.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Method5787.14-44
Graham Formula4409.45-57

Strategic Investment Analysis

Company Overview

Trancom Co., Ltd. (9058.T) is a leading Japanese logistics company offering a comprehensive range of services, including logistics center construction and operation, transport matching, delivery services, and temporary staffing solutions. Headquartered in Nagoya and founded in 1955, Trancom operates domestically and internationally, providing freight transportation, automobile maintenance, insurance agency services, and software development. The company serves diverse industries with its integrated logistics solutions, positioning itself as a key player in Japan's freight and logistics sector. With a market capitalization of approximately ¥94.8 billion, Trancom leverages its decades of expertise to optimize supply chain efficiency for businesses. Its diversified service portfolio, including personal delivery and consulting, enhances its resilience in the competitive logistics market. Investors looking for exposure to Japan's industrial and logistics sector should consider Trancom's stable operations and strategic service offerings.

Investment Summary

Trancom Co., Ltd. presents a stable investment opportunity with a low beta (0.42), indicating lower volatility compared to the broader market. The company reported ¥169.4 billion in revenue and ¥4.5 billion in net income for FY 2024, with a diluted EPS of ¥483.9. Its strong operating cash flow (¥6.8 billion) and healthy cash position (¥21.6 billion) provide financial flexibility. However, the logistics sector is highly competitive, and Trancom's moderate dividend payout may not appeal to income-focused investors. The company's diversified services and established market presence mitigate some risks, but investors should monitor industry trends, including rising fuel costs and labor shortages, which could impact profitability.

Competitive Analysis

Trancom Co., Ltd. operates in Japan's competitive logistics sector, where it differentiates itself through a diversified service portfolio, including logistics center operations, staffing, and software development. Its integrated approach allows it to serve clients across multiple industries, providing end-to-end supply chain solutions. However, the company faces stiff competition from larger global logistics firms and domestic players with stronger international networks. Trancom's competitive advantage lies in its localized expertise and long-standing relationships in Japan, but it may lack the scale to compete aggressively on pricing with giants like Nippon Express. The company's focus on ancillary services, such as temporary staffing and consulting, adds resilience but may dilute its core logistics specialization. To maintain its position, Trancom must continue investing in technology and operational efficiency while expanding its international footprint cautiously.

Major Competitors

  • Nippon Express Co., Ltd. (9062.T): Nippon Express is Japan's largest logistics company, offering global freight forwarding, warehousing, and transportation services. Its extensive international network gives it a significant advantage over Trancom in cross-border logistics. However, Nippon Express's larger scale may lead to higher operational inefficiencies compared to Trancom's more agile operations.
  • Yamato Holdings Co., Ltd. (9064.T): Yamato Holdings dominates Japan's parcel delivery market with its 'Kuroneko Yamato' brand. Its strong last-mile delivery network poses a challenge to Trancom's personal delivery services. However, Yamato's focus on B2C logistics limits its competitiveness in B2B and industrial logistics, where Trancom has a stronger presence.
  • Kawasaki Kisen Kaisha, Ltd. (K Line) (9107.T): K Line specializes in maritime logistics and bulk shipping, giving it an edge in international freight. Unlike Trancom, K Line has limited domestic logistics capabilities, but its global shipping network makes it a formidable competitor for international logistics contracts.
  • Iino Kaiun Kaisha, Ltd. (9119.T): Iino Kaiun focuses on marine transportation and logistics, with a strong presence in energy shipping. Its specialization in bulk and tanker shipping differentiates it from Trancom's diversified logistics services, but both compete in freight management and warehousing.
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