| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1319.68 | -7 |
| Intrinsic value (DCF) | 11403.73 | 708 |
| Graham-Dodd Method | 958.03 | -32 |
| Graham Formula | 1747.52 | 24 |
Mammy Mart Corporation (9823.T) is a leading Japanese supermarket chain specializing in fresh food retail. Headquartered in Saitama and founded in 1950, the company operates under a consumer defensive business model, catering to essential grocery needs in Japan. Formerly known as Iwasaki Shoji Co., Ltd., it rebranded to Mammy Mart in 1988, reflecting its focus on fresh food retailing. With a market capitalization of approximately ¥54.8 billion, Mammy Mart serves as a key player in Japan's grocery sector, emphasizing quality perishables and daily necessities. The company's revenue of ¥160.7 billion (FY 2024) underscores its strong regional presence. As a low-beta (0.17) stock, Mammy Mart appeals to stability-seeking investors in the competitive Japanese supermarket industry, where it differentiates through fresh food specialization and localized store operations.
Mammy Mart presents a conservative investment opportunity with stable cash flows (¥925M operating cash flow) and modest profitability (¥4.7B net income). Its low beta suggests resilience to market volatility, appealing to defensive investors. However, high debt (¥14.5B) and negative free cash flow (due to ¥3.6B capex) raise liquidity concerns. The ¥97/share dividend indicates a shareholder-friendly policy, but growth prospects may be limited by Japan's stagnant population and intense grocery competition. Investors should weigh its stable fresh-food niche against sector margin pressures and demographic challenges.
Mammy Mart competes in Japan's saturated grocery market by specializing in fresh food—a segment less susceptible to e-commerce disruption than packaged goods. Its regional focus in Saitama allows cost-efficient supply chains but limits national scale versus giants like Aeon. The company's ¥160B revenue is dwarfed by market leaders, forcing differentiation through perishable quality rather than price leadership. While its fresh-food emphasis provides some insulation against convenience stores (like Seven & I), Mammy Mart lacks the omnichannel capabilities of hybrid retailers (e.g., Rakuten Seiyu). High debt (1.8x cash reserves) restricts expansion compared to cash-rich peers. Operational efficiency is middling—EPS of ¥473.61 reflects thin supermarket margins. Mammy Mart's competitive edge lies in localized fresh sourcing, but this requires ongoing capex (¥3.6B), straining financial flexibility versus diversified competitors with stronger balance sheets.