Gross Margin - Katitas Co Ltd (TSE:8919)

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Price: 3 180 JPY 1.6%

Market Cap: 250.1B JPY

24.1%

Current

23%

Average

49%

Industry

Gross Margin is the amount of money a company retains after incurring the direct costs associated with producing the goods it sells and the services it provides. The higher the gross margin, the more capital a company retains, which it can then use to pay other costs or satisfy debt obligations.

Gross Margin

24.1%

Gross Profit

32.1B

Revenue

133.4B

Gross Margin Across Competitors

Country		Company	Market Cap	Gross Margin
JP		Katitas Co Ltd TSE:8919	248.7B JPY	24%
HK		China Resources Land Ltd HKEX:1109	201.1B HKD	22%
HK		Henderson Land Development Co Ltd HKEX:12	139.8B HKD	36%
HK		China Overseas Land & Investment Ltd HKEX:688	137.6B HKD	15%
HK		CK Asset Holdings Ltd HKEX:1113	137.8B HKD	49%
VN	V	Vinhomes JSC VN:VHM	418.5T VND	29%
HK		Sino Land Co Ltd HKEX:83	97.2B HKD	48%
IN		Macrotech Developers Ltd NSE:LODHA	1.1T INR	40%
CN		China Merchants Shekou Industrial Zone Holdings Co Ltd SZSE:001979	80.6B CNY	13%
CN		Poly Developments and Holdings Group Co Ltd SSE:600048	76.8B CNY	11%
CN		China Vanke Co Ltd SZSE:000002	60.5B CNY	5%

Katitas Co Ltd
Glance View

Market Cap

248.7B JPY

Industry

Real Estate

In the bustling real estate market of Japan, Katitas Co., Ltd. has cultivated a distinctive business model that capitalizes on transforming neglected, aged properties into desirable homes. Founded in 1978, the company focuses primarily on revitalizing single-family houses in rural and suburban areas—places often overlooked by larger developers. By acquiring these aged properties at relatively low costs, Katitas taps into an underutilized market segment. They breathe new life into houses, enhancing their appeal through efficient renovations tailored to modern standards. Once the renovations are complete, these homes are sold to new owners, many of whom are first-time buyers or retirees seeking affordable housing solutions. The company's keen eye for recognizing potential in these overlooked areas has positioned it as a significant player in the Japanese real estate landscape, efficiently narrowing the gap between demand and supply. Beyond just buying and flipping properties, Katitas crafts an intricate symbiosis between property rejuvenation and community enrichment. Their strategy involves not just physical upgrades but also subtly elevating the aesthetics and livability of entire neighborhoods. This, in turn, enhances property values and attracts more buyers, which feeds back into the local economy, strengthening community ties. Their business thrives on a lean operational model, utilizing a strong network of local contractors, enabling swift and cost-effective renovations. This approach has allowed Katitas to maintain healthy profit margins while competing against real estate giants. With Japan's demographic shifts emphasizing the need for quality housing solutions in areas outside its major cities, Katitas’ model demonstrates how innovative thinking and local engagement can effectively meet market needs.

View Katitas Co Ltd Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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Katitas Co Ltd
TSE:8919