| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1539.69 | -20 |
| Intrinsic value (DCF) | 5128.61 | 166 |
| Graham-Dodd Method | 665.32 | -66 |
| Graham Formula | 924.13 | -52 |
Sagami Holdings Corporation (9900.T) is a leading Japanese restaurant chain operator specializing in Japanese cuisine and noodles, with a strong presence both domestically and internationally. Founded in 1970 and headquartered in Nagoya, Japan, the company operates multiple restaurant brands, including Sagami, Ajino-Mingei, Don Don An, and SUIZAN, among others. Beyond its core restaurant business, Sagami Holdings is vertically integrated, manufacturing and selling noodles, cut vegetables, and beverages, while also managing franchise operations and overseas outlets. The company further enhances its market position through menu development and the sale of food-related materials. With a market capitalization of approximately ¥51.45 billion, Sagami Holdings serves the consumer cyclical sector, capitalizing on Japan's rich culinary heritage and expanding global demand for Japanese cuisine. Its diversified brand portfolio and operational efficiency make it a key player in the competitive restaurant industry.
Sagami Holdings Corporation presents a stable investment opportunity with its well-established brand portfolio and vertical integration, which supports cost efficiency and supply chain control. The company's revenue of ¥31.01 billion and net income of ¥909.59 million reflect steady performance, while its low beta (0.203) suggests lower volatility compared to the broader market. However, investors should note the modest diluted EPS of ¥30.15 and a dividend yield anchored by a ¥10 per share payout. The company's strong cash position (¥8.01 billion) and manageable debt (¥2.72 billion) provide financial flexibility, but capital expenditures (¥-1.88 billion) indicate ongoing reinvestment needs. The competitive Japanese restaurant sector and reliance on domestic consumption may limit near-term growth, making Sagami a conservative pick for investors seeking exposure to Japan's consumer cyclical sector.
Sagami Holdings Corporation competes in Japan's highly fragmented restaurant industry, where differentiation through cuisine quality, brand diversity, and operational efficiency is critical. The company's competitive advantage lies in its multi-brand strategy, which caters to varied consumer preferences—from traditional Japanese noodles (Sagami) to pasta (Dela Pasta Kitchen). Its vertical integration, including in-house noodle manufacturing, reduces costs and ensures product consistency, a key edge over smaller rivals. However, Sagami faces intense competition from larger chains like Zensho Holdings (7550.T) and Colowide (7616.T), which benefit from greater scale and nationwide coverage. While Sagami's international footprint is limited compared to global players like Yoshinoya Holdings (9861.T), its focus on premium and niche segments (e.g., Ajino-Mingei's artisanal noodles) helps mitigate price competition. The company's innovation in menu development and franchise management supports steady growth, but its reliance on Japan's stagnant dining-out market poses a long-term challenge. To sustain competitiveness, Sagami must balance expansion with profitability, leveraging its strong cash reserves to modernize stores and explore digital ordering trends.