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Stock Analysis & ValuationKyogoku unyu shoji Co., Ltd. (9073.T)

Professional Stock Screener
Previous Close
¥1,505.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1091.95-27
Intrinsic value (DCF)487.20-68
Graham-Dodd Method1462.97-3
Graham Formula287.62-81

Strategic Investment Analysis

Company Overview

Kyogoku Unyu Shoji Co., Ltd. (TYO: 9073) is a well-established Japanese transportation company with a history dating back to 1891. Headquartered in Tokyo, the company operates in the trucking industry, specializing in freight transportation, including petroleum, chemical products, liquefied gas, and port logistics. Beyond its core transportation services, Kyogoku Unyu Shoji diversifies its operations into shipping agency services, temporary staffing, and power generation and sales. As part of the industrials sector, the company plays a crucial role in Japan's logistics and supply chain infrastructure. With a market capitalization of approximately ¥3.45 billion, Kyogoku Unyu Shoji maintains a stable presence in Japan's competitive transportation market, leveraging its long-standing industry expertise and diversified business model.

Investment Summary

Kyogoku Unyu Shoji presents a stable but low-growth investment opportunity within Japan's transportation sector. The company's low beta (0.3) suggests minimal volatility relative to the broader market, making it a conservative choice for risk-averse investors. However, with modest revenue (¥8.41 billion) and net income (¥60 million), the company's profitability is limited. The diluted EPS of ¥19.81 and a dividend per share of ¥10 indicate modest returns for shareholders. While the company maintains a solid cash position (¥944 million), its total debt (¥1.49 billion) could pose a risk if economic conditions worsen. Investors should weigh the company's stability against its limited growth prospects in a highly competitive industry.

Competitive Analysis

Kyogoku Unyu Shoji operates in Japan's fragmented trucking and logistics industry, where competition is intense due to low entry barriers and price sensitivity. The company's competitive advantage lies in its diversified service offerings, including specialized freight transport (petroleum, chemicals, liquefied gas) and ancillary businesses like power generation. However, its small market cap (¥3.45 billion) limits its ability to compete with larger logistics firms that benefit from economies of scale. The company's long-standing presence (founded in 1891) provides brand recognition and customer loyalty, but it faces challenges from digital freight platforms and more agile competitors. Its reliance on Japan's domestic market also exposes it to regional economic fluctuations. While Kyogoku Unyu Shoji maintains a stable cash flow (¥465 million operating cash flow), its capital expenditures (¥128 million) suggest limited aggressive expansion, potentially hindering market share growth against more capital-intensive rivals.

Major Competitors

  • Nippon Express Co., Ltd. (9062.T): Nippon Express is a dominant player in Japan's logistics sector, offering comprehensive freight and warehousing solutions. Its global network and larger scale (market cap ~¥1.2 trillion) give it a significant advantage over Kyogoku Unyu Shoji. However, Nippon Express faces higher operational complexity and exposure to international trade risks.
  • Yamato Holdings Co., Ltd. (9064.T): Yamato Holdings is a leader in parcel delivery and last-mile logistics, with a strong brand (Kuroneko Yamato). Its focus on e-commerce logistics differentiates it from Kyogoku Unyu Shoji's freight-centric model. Yamato's larger scale and technological investments in delivery tracking give it a competitive edge, but it operates in a more consumer-facing segment.
  • Meiji Shipping Group Co., Ltd. (9115.T): Meiji Shipping specializes in maritime and land logistics, overlapping with Kyogoku Unyu Shoji's port transportation business. Its integrated sea-land logistics network provides cost efficiencies, but its heavy reliance on shipping exposes it to volatile freight rates, unlike Kyogoku's more diversified operations.
  • Maruzen Showa Unyu Co., Ltd. (9068.T): Maruzen Showa Unyu focuses on chemical and petroleum logistics, directly competing with Kyogoku Unyu Shoji's core business. Its specialized tank truck fleet and safety expertise are strengths, but its narrower focus makes it less diversified than Kyogoku, which has additional revenue streams in staffing and power generation.
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