PARK24 And Two Other Japanese Exchange Stocks Considered For Value Investing Opportunities

In This Article:

Amidst a backdrop of modest declines in the Japanese stock markets, with the Nikkei 225 and TOPIX indices experiencing negative returns due to uncertainties around monetary policy, investors might find value in exploring underappreciated stocks. In such an environment, identifying companies with solid fundamentals and potential for growth becomes crucial for those considering value investing opportunities in Japan.

Top 10 Undervalued Stocks Based On Cash Flows In Japan

Name

Current Price

Fair Value (Est)

Discount (Est)

Link and Motivation (TSE:2170)

¥454.00

¥890.56

49%

Mimaki Engineering (TSE:6638)

¥1879.00

¥3513.72

46.5%

Plus Alpha ConsultingLtd (TSE:4071)

¥1913.00

¥3566.19

46.4%

Hibino (TSE:2469)

¥2538.00

¥4877.08

48%

OSAKA Titanium technologiesLtd (TSE:5726)

¥2807.00

¥5524.33

49.2%

S-Pool (TSE:2471)

¥314.00

¥588.77

46.7%

Gift Holdings (TSE:9279)

¥2760.00

¥5374.10

48.6%

Macromill (TSE:3978)

¥866.00

¥1678.64

48.4%

NIHON CHOUZAILtd (TSE:3341)

¥1481.00

¥2806.45

47.2%

freee K.K (TSE:4478)

¥2397.00

¥4464.98

46.3%

Click here to see the full list of 100 stocks from our Undervalued Japanese Stocks Based On Cash Flows screener.

Here we highlight a subset of our preferred stocks from the screener

PARK24

Overview: PARK24 Co., Ltd. specializes in operating and managing parking facilities both in Japan and internationally, with a market capitalization of approximately ¥278.07 billion.

Operations: The company generates revenue primarily from the operation and management of parking facilities globally.

Estimated Discount To Fair Value: 13.4%

PARK24, currently trading at ¥1630, is perceived as undervalued based on DCF analysis with a fair value estimate of ¥1881.96. Despite its high debt levels, the company's earnings have grown by 67.5% over the past year and are expected to increase by 12.71% annually. Furthermore, PARK24's revenue growth is projected to outpace the Japanese market with a 5.5% annual increase compared to the market's 4.2%. However, its valuation remains slightly below significant undervaluation thresholds.

TSE:4666 Discounted Cash Flow as at Jun 2024
TSE:4666 Discounted Cash Flow as at Jun 2024

Strike CompanyLimited

Overview: Strike Company Limited (TSE: 6196) operates as a brokerage for mergers and acquisitions of small and medium-sized enterprises in Japan, with a market capitalization of approximately ¥90.64 billion.

Operations: The firm specializes in providing brokerage services for mergers and acquisitions targeting small to medium-sized enterprises across Japan.