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Stock Analysis & ValuationBelluna Co., Ltd. (9997.T)

Professional Stock Screener
Previous Close
¥973.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)2196.79126
Intrinsic value (DCF)343.92-65
Graham-Dodd Method1522.9357
Graham Formula846.59-13

Strategic Investment Analysis

Company Overview

Belluna Co., Ltd. (9997.T) is a leading Japanese mail-order and specialty retail company headquartered in Ageo, Japan. Established in 1947, Belluna operates across multiple segments, including General Mail Order, Specialty Mail Order, Retail Store Sales, Finance, Property, and Solution services. The company specializes in selling daily life-related merchandise such as clothing, household goods, food, wine, cosmetics, and health supplements through catalogs, e-commerce, and retail stores. Belluna also provides consumer financing, real estate rental, and corporate marketing solutions. With a diversified business model, Belluna serves both individual consumers and corporate clients, leveraging its strong logistics and direct marketing expertise. As part of Japan’s consumer cyclical sector, Belluna plays a key role in the country’s specialty retail industry, adapting to evolving consumer preferences and digital commerce trends.

Investment Summary

Belluna Co., Ltd. presents a mixed investment profile. The company benefits from a diversified revenue stream across mail-order, retail, and financial services, providing stability in Japan’s competitive retail market. With a market cap of ¥84.2 billion and a beta of 0.641, Belluna exhibits lower volatility compared to broader markets. However, its high total debt of ¥119.5 billion raises concerns about financial leverage, despite a solid cash position of ¥35.8 billion. The company’s diluted EPS of ¥60.39 and dividend payout of ¥29 per share indicate modest profitability. Investors should weigh Belluna’s established market presence against potential risks from Japan’s aging population and shifting e-commerce dynamics.

Competitive Analysis

Belluna Co., Ltd. competes in Japan’s crowded mail-order and specialty retail sector by leveraging its multi-channel distribution strategy, combining catalogs, e-commerce, and physical stores. Its competitive advantage lies in its diversified product offerings, strong logistics network, and integrated financial services, which enhance customer retention. However, Belluna faces intense competition from pure-play e-commerce giants and traditional retailers expanding into digital sales. The company’s ability to maintain profitability depends on efficient cost management and adapting to digital transformation. While its property and finance segments provide additional revenue streams, they also expose Belluna to cyclical risks. Compared to competitors, Belluna’s strength is its long-standing brand recognition and hybrid retail model, but it must innovate to keep pace with digital-native rivals.

Major Competitors

  • Rakuten Group, Inc. (4755.T): Rakuten dominates Japan’s e-commerce and fintech sectors with a vast digital ecosystem. Its strengths include a strong online marketplace, loyalty programs, and financial services. However, Rakuten’s aggressive expansion into unprofitable ventures (e.g., mobile) has strained finances. Unlike Belluna, Rakuten lacks a significant physical retail presence.
  • Z Holdings Corporation (Yahoo Japan) (2686.T): Z Holdings operates Yahoo Shopping and PayPay Mall, competing directly with Belluna’s mail-order segment. Its strengths include a large user base and integrated payment solutions. However, it lacks Belluna’s diversified offline retail and financing operations, making it more vulnerable to pure e-commerce competition.
  • Himaraya Co., Ltd. (7514.T): Himaraya is a specialty retailer focusing on outdoor and lifestyle products. While smaller than Belluna, it has a niche market appeal. Its weakness is limited diversification compared to Belluna’s multi-segment approach.
  • Lawson, Inc. (2651.T): Lawson is a convenience store chain with growing e-commerce and financial services. Its strength lies in its extensive physical network, but it lacks Belluna’s deep expertise in catalog-based mail order.
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