| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1578.72 | 31 |
| Intrinsic value (DCF) | 339.04 | -72 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 1207.53 | 0 |
AB&Company Co., Ltd. is a leading Japanese operator of directly managed beauty salons, offering a diverse portfolio of brands including HAIR SALON Agu, Men's Salon FADE & LINE, A GRAND UNION, Fuji Toyo Barber, Chill Dry Head Spa, and CS made by SHACHU. Founded in 2009 and headquartered in Tokyo, the company has established a strong presence in Japan's personal care and beauty industry. Beyond salon operations, AB&Company engages in franchise management and interior design services specializing in salon layouts and construction. The company caters to a broad consumer base, emphasizing quality service and innovative salon experiences. Operating in the consumer cyclical sector, AB&Company benefits from Japan's robust beauty and personal care market, which continues to grow due to rising demand for premium grooming services. With a market capitalization of approximately ¥13.1 billion, the company is well-positioned to capitalize on industry trends while maintaining operational efficiency.
AB&Company presents a stable investment opportunity within Japan's consumer cyclical sector, supported by its diversified salon brands and franchise model. The company's revenue of ¥18.18 billion and net income of ¥1.08 billion reflect steady profitability, while its low beta (0.199) suggests lower volatility compared to the broader market. However, investors should note the company's high total debt (¥12.03 billion) relative to cash reserves (¥2.24 billion), which could pose liquidity risks in a downturn. The dividend yield, with a payout of ¥28.07 per share, may appeal to income-focused investors. AB&Company's focus on premium salon services aligns with Japan's growing beauty market, but competition remains intense, requiring continuous innovation to maintain market share.
AB&Company competes in Japan's highly fragmented beauty salon industry, where differentiation through branding and service quality is critical. The company's competitive advantage lies in its multi-brand strategy, catering to diverse customer segments—from men's grooming (FADE & LINE) to luxury experiences (A GRAND UNION). Its vertically integrated interior design business further enhances profitability by reducing third-party costs for salon setups. However, the industry is saturated with both local independents and chains, necessitating strong operational execution. AB&Company's franchise model provides scalability, but reliance on domestic markets limits growth compared to global peers. The company's debt load could constrain expansion, though its steady cash flow (¥3.41 billion operating cash flow) supports debt servicing. To sustain competitiveness, AB&Company must invest in digital marketing and customer retention strategies amid rising labor costs and shifting consumer preferences.