| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4600.88 | 48 |
| Intrinsic value (DCF) | 1599.50 | -49 |
| Graham-Dodd Method | 3452.71 | 11 |
| Graham Formula | 873.84 | -72 |
The Yonkyu Co., Ltd. is a key player in Japan's fishery industry, specializing in fresh fish sales, aquaculture support, and feed production. Founded in 1961 and headquartered in Uwajima, Japan, the company operates through three segments: Fresh Fish Sales Business, Food and Feed Sales Business, and Other Business. Yonkyu supplies wild fish, yellowtail fillets, and juvenile fish to aquaculture firms while also producing artificially hatched fry. Additionally, it farms and sells high-demand seafood like tuna and eels. The company further supports aquaculture through live and compound feed sales. With a market cap of ¥26.2 billion, Yonkyu plays a vital role in Japan's seafood supply chain, catering to both domestic and commercial markets. Its diversified operations in fishery and aquaculture make it a resilient player in the Consumer Defensive sector.
The Yonkyu Co., Ltd. presents a stable investment opportunity within Japan's fishery sector, supported by consistent revenue (¥45.1 billion) and net income (¥1.63 billion). The company's low beta (0.148) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, negative operating cash flow (-¥60.6 million) and significant capital expenditures (-¥1.5 billion) raise concerns about short-term liquidity. Yonkyu's strong cash position (¥20 billion) and moderate debt (¥7.27 billion) provide financial flexibility. The dividend yield (2.5% based on ¥34/share) adds income appeal. Investors should weigh its niche market dominance against exposure to fluctuating seafood demand and aquaculture risks.
Yonkyu's competitive advantage lies in its vertically integrated operations, spanning wild fish procurement, aquaculture support, and feed production. This integration ensures supply chain control and cost efficiencies. The company's focus on high-value species like tuna and eels differentiates it from generic seafood suppliers. However, its reliance on Japan's domestic market limits geographic diversification. Competitors with global operations may outperform in scalability. Yonkyu's feed segment provides recurring revenue, but innovation in sustainable aquaculture feed is critical as environmental regulations tighten. The company's small market cap suggests it lacks the scale of multinational peers, but its regional expertise in Japanese aquaculture is a strength. Challenges include dependency on wild fish stocks and vulnerability to climate change impacts on fisheries.