- Major drug store operator Welcia (TYO: 3141) is becoming Japan’s neighborhood pharmacy.
- In doing so, the company directly competes with the convenience industry.
- Welcia maintains a strong position against the giants in convenience, thanks to Aeon’s (TYO: 8267) backing.
- With its 18x EV/EBIT price tag and many moving parts, Welcia does not present a compelling investment opportunity.
- Investors ought to look at pharmacy and drug store related industries for opportunities.
Continue reading “Poking The Convenience Giants – Welcia Holdings (TYO: 3141)”
- Cosmos Pharmaceuticals (TYO: 3349) operates drug stores with a Walmart and 7-Eleven-like strategy, delivering industry leading growth (20% 10 year EBIT CAGR) over the past decade.
- The company’s larger than normal stores target small areas and resembles a neighborhood supermarket.
- At 18x EV/EBIT, Cosmos is a high quality business trading at an even higher price.
Continue reading “20% EBIT CAGR With A Walmart Twist – TYO: 3349 Cosmos Pharmaceuticals”