| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4886.12 | 9 |
| Intrinsic value (DCF) | 4336.74 | -3 |
| Graham-Dodd Method | 12844.74 | 186 |
| Graham Formula | 4654.20 | 4 |
Okayamaken Freight Transportation Co., Ltd. (9063.T) is a Japan-based logistics and freight transportation company founded in 1943 and headquartered in Okayama. Specializing in freight forwarding, warehousing, and industrial waste transportation, the company serves as a key player in Japan's domestic logistics sector. Additionally, Okayamaken Freight Transportation offers air transport agency services, customs clearance, and software development, diversifying its revenue streams beyond traditional trucking. With a market capitalization of approximately ¥6.73 billion, the company operates in the Industrials sector, specifically within the Trucking industry. Its integrated logistics solutions, including database and communication services, position it as a niche provider in Japan's competitive freight market. The company’s long-standing presence and regional expertise in Okayama and surrounding areas contribute to its stable operations.
Okayamaken Freight Transportation presents a stable but low-growth investment opportunity, supported by its consistent revenue (¥37.69 billion in FY 2024) and net income (¥2.5 billion). The company’s low beta (0.003) suggests minimal correlation with broader market volatility, making it a defensive play. However, its heavy reliance on Japan’s domestic freight market exposes it to regional economic fluctuations and demographic challenges. The dividend yield, based on a ¥70 per share payout, may appeal to income-focused investors, but high capital expenditures (¥-2.82 billion) and significant total debt (¥13.64 billion) could constrain financial flexibility. Investors should weigh its steady cash flow (¥1.96 billion operating cash flow) against limited scalability in a mature industry.
Okayamaken Freight Transportation operates in a highly competitive Japanese logistics market dominated by larger players like Nippon Express and Yamato Holdings. Its competitive advantage lies in regional specialization, particularly in Okayama, where it has established warehousing and waste transportation services. Unlike nationwide competitors, Okayamaken focuses on mid-sized freight and ancillary services (e.g., software development), which provide diversification but limit economies of scale. The company’s debt levels are relatively high compared to peers, potentially restricting aggressive expansion. While its air transport agency and customs clearance services add value, they face stiff competition from global logistics firms. The lack of international exposure further narrows its growth prospects compared to multinational rivals. However, its stable cash reserves (¥5.95 billion) offer a buffer against short-term industry downturns.