Intrinsic Value ALBERT Inc. (3906.T)

• Previous Close: ¥9,160.00
• Intrinsic Value: n/a
• Upside potential: n/a%

Stock Valuation Context

Business Model And Market Position

ALBERT Inc. operates in Japan's data analytics and AI consulting sector, specializing in big data solutions, AI-driven services, and algorithm development. The company serves diverse industries, including automotive, finance, and manufacturing, leveraging its proprietary AI tools like Sugures (a chatbot service) and Takuminome (an image-recognition AI platform). Its strategic alliance with SBI Holdings enhances its reach in financial services and biotechnology, positioning it as a niche player in Japan's growing AI and data analytics market. ALBERT differentiates itself through tailored AI solutions, training support for data scientists, and integration with social media platforms like LINE, catering to businesses seeking automation and data-driven decision-making. While it competes with larger IT consultancies, its specialized focus on AI and big data provides a defensible market position in Japan's digital transformation landscape.

Revenue Profitability And Efficiency

In FY 2021, ALBERT reported revenue of ¥3.34 billion, with net income of ¥353.7 million, reflecting a net margin of approximately 10.6%. Operating cash flow stood at ¥691.7 million, indicating solid cash generation relative to earnings. Capital expenditures were modest at ¥39.7 million, suggesting a capital-light model focused on intellectual property and service delivery rather than heavy infrastructure investment.

Earnings Power And Capital Efficiency

The company's diluted EPS of ¥11.25 demonstrates its ability to translate revenue into shareholder returns. With minimal debt (¥24.5 million) and high cash reserves (¥3.25 billion), ALBERT maintains strong capital efficiency, allowing flexibility for R&D or strategic partnerships. Its asset-light model supports high returns on invested capital, though scalability depends on demand for niche AI solutions.

Balance Sheet And Financial Health

ALBERT's balance sheet is robust, with cash and equivalents exceeding total debt by a wide margin. The negligible debt burden and substantial liquidity position the company to weather economic downturns or invest in growth initiatives without leveraging. Financial health is further underscored by positive operating cash flow and minimal capex requirements.

Growth Trends And Dividend Policy

ALBERT's growth is tied to Japan's adoption of AI and big data analytics, though its revenue base remains relatively small. The company does not pay dividends, reinvesting profits into R&D and business development. Future expansion may hinge on scaling its AI platforms and deepening alliances like the SBI Holdings partnership.

Valuation And Market Expectations

Given the lack of disclosed market capitalization, valuation metrics are unclear. However, the company's profitability and cash reserves suggest a stable financial foundation. Investors likely focus on its potential in Japan's AI market, though competition from larger IT firms could limit upside.

Strategic Advantages And Outlook

ALBERT's strengths lie in its specialized AI tools and partnerships, but its small scale may challenge broader market penetration. The outlook depends on demand for customized AI solutions in Japan, with opportunities in sectors like finance and healthcare. Execution risks include competition and the need to continuously innovate in a fast-evolving industry.

Sources

Company description and financial data sourced from publicly available disclosures (FY 2021).