| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 405.24 | 1 |
| Intrinsic value (DCF) | 104.80 | -74 |
| Graham-Dodd Method | 10.96 | -97 |
| Graham Formula | n/a |
ITbook Holdings Co., Ltd. is a Tokyo-based IT consulting and services company operating primarily in Japan. Founded in 2018, the company provides a diverse range of services, including ICT consulting, system development and maintenance, software and hardware sales, and human resource dispatch services to public and private enterprises. Additionally, ITbook Holdings engages in ground survey and improvement work, construction-related meteorological observation systems, and disaster prevention services. The company serves government agencies, independent administrative institutions, local governments, and general contractors, positioning itself as a versatile IT and infrastructure solutions provider. With a market capitalization of approximately ¥6.6 billion, ITbook Holdings plays a niche but critical role in Japan's technology and construction sectors. Its integrated approach—combining IT services with ground improvement and safety guarantees—sets it apart in a competitive market. Investors should note its exposure to Japan's public sector and construction industry, which may influence revenue stability.
ITbook Holdings presents a mixed investment profile. On the positive side, the company operates in stable sectors (government IT services and construction-related technology) with a diversified service portfolio. Its low beta (0.063) suggests minimal correlation with broader market volatility, making it a potential defensive holding. However, challenges include modest net income (¥183 million on ¥29.3 billion revenue), high total debt (¥10.1 billion), and reliance on Japan's domestic market. The dividend yield (~1.8% based on a ¥12 per share dividend) is modest but may appeal to income-focused investors. Operating cash flow (¥572 million) is positive, but capital expenditures (¥-449 million) indicate ongoing investment needs. Given its small-cap status and sector exposure, ITbook Holdings may suit investors seeking niche Japanese IT and infrastructure plays, but its financial leverage and competitive pressures warrant caution.
ITbook Holdings competes in Japan's fragmented IT consulting and infrastructure services market. Its competitive advantage lies in its dual focus on IT solutions and ground-related services, a combination not commonly found among peers. This allows cross-selling opportunities, particularly in public sector projects requiring both IT modernization and construction compliance. However, the company faces intense competition from larger IT service providers with greater resources and established client networks. Its specialization in government and construction-related IT may provide some insulation from broader IT consulting rivals but limits growth outside these niches. The company’s relatively small scale (¥29.3 billion revenue) means it lacks the bargaining power and R&D budgets of industry leaders. Its debt-heavy balance sheet (¥10.1 billion total debt vs. ¥5 billion cash) could constrain agility in a downturn. Strengths include its diversified service offerings and entrenched public sector relationships, but weaknesses include reliance on Japan's domestic market and vulnerability to government budget cycles. ITbook’s ability to integrate IT and ground services is unique but may not be sufficient to offset competition from larger, better-capitalized players.