Intrinsic Value Just Planning Inc. (4287.T)

• Previous Close: ¥468.00
• Intrinsic Value: ¥797.87
• Upside potential: +70%

Stock Valuation Context

Business Model And Market Position

Just Planning Inc. operates in Japan's food and beverage technology sector, specializing in store management and point-of-sale (POS) solutions. The company develops and sells ASP-based systems that streamline restaurant operations, including sales, attendance, and purchase management, alongside consulting and support services. Its integrated approach helps businesses optimize efficiency, making it a key player in Japan's niche market for restaurant management software. Just Planning differentiates itself through localized expertise and tailored solutions, catering primarily to small and mid-sized enterprises. The company also generates ancillary revenue from consumables sales, enhancing its recurring income streams. With a foundation dating back to 1994, Just Planning has established credibility in a competitive industry where reliability and customer support are critical. Its market position is reinforced by a focus on operational simplicity and cost-effective solutions, appealing to Japan's dense restaurant landscape.

Revenue Profitability And Efficiency

Just Planning reported revenue of JPY 2.20 billion for FY2025, with net income of JPY 364 million, reflecting a net margin of approximately 16.5%. The company demonstrates solid profitability, supported by an operating cash flow of JPY 308 million and minimal capital expenditures (JPY -24 million), indicating efficient cash generation and low reinvestment needs. Its asset-light model contributes to high returns on capital.

Earnings Power And Capital Efficiency

The company’s diluted EPS of JPY 29.55 underscores its earnings power, driven by recurring software sales and consulting services. With no debt and JPY 1.37 billion in cash reserves, Just Planning maintains strong capital efficiency, allowing flexibility for growth initiatives or shareholder returns. Its beta of 0.342 suggests lower volatility relative to the broader market.

Balance Sheet And Financial Health

Just Planning boasts a robust balance sheet, with JPY 1.37 billion in cash and equivalents and zero debt, highlighting financial stability. This conservative structure provides resilience against economic downturns and positions the company for strategic investments or acquisitions if opportunities arise.

Growth Trends And Dividend Policy

The company’s growth is tied to Japan’s restaurant digitization trends, with potential upside from expanding its SaaS offerings. Just Planning pays a dividend of JPY 10 per share, signaling a commitment to shareholder returns, though its payout ratio remains modest, preserving capital for reinvestment.

Valuation And Market Expectations

At a market cap of JPY 4.59 billion, Just Planning trades at a P/E of approximately 12.6x, reflecting moderate investor expectations. Its low beta and steady cash flows may appeal to value-oriented investors seeking stability in the technology sector.

Strategic Advantages And Outlook

Just Planning’s deep industry expertise and recurring revenue model provide a competitive edge. The outlook remains positive, supported by Japan’s ongoing adoption of digital solutions in hospitality. However, growth depends on expanding its customer base and enhancing product offerings in a competitive market.

Sources

Company filings, market data