| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 564.62 | -48 |
| Intrinsic value (DCF) | 1367.20 | 26 |
| Graham-Dodd Method | 267.43 | -75 |
| Graham Formula | 164.22 | -85 |
Soracom, Inc. is a Tokyo-based company specializing in Internet of Things (IoT) cellular connectivity solutions. Founded in 2014, Soracom offers a range of services including Soracom SIM for 2G, 3G, and 4G LTE connectivity, Soracom Arc for WiFi, ethernet, and satellite connections, and cloud integration services. The company operates in the Software - Infrastructure industry within the Technology sector, providing essential IoT networking solutions that enable seamless device connectivity and data management. With a market capitalization of approximately ¥38.4 billion, Soracom is positioned as a key player in Japan's growing IoT market, catering to businesses that require reliable and scalable connectivity solutions. The company's innovative approach and focus on cloud-based IoT services make it a relevant and competitive entity in the global IoT landscape.
Soracom, Inc. presents an intriguing investment opportunity within the IoT connectivity space, particularly in Japan. The company's revenue of ¥7.93 billion and net income of ¥485.6 million for FY 2024 indicate steady growth, supported by a strong cash position of ¥7.7 billion and minimal debt. However, the high beta of 1.42 suggests higher volatility compared to the market, which may deter risk-averse investors. The lack of dividends may also be a drawback for income-focused investors. Soracom's focus on IoT and cloud integration aligns with global trends toward digital transformation, but competition in this space is intense. Investors should weigh the company's growth potential against sector risks and market volatility.
Soracom, Inc. competes in the IoT connectivity market with a focus on cellular and multi-network solutions. Its competitive advantage lies in its flexible and scalable offerings, such as Soracom SIM and Soracom Arc, which cater to diverse IoT applications. The company's cloud integration and private networking services further differentiate it from traditional telecom providers. However, Soracom faces stiff competition from global IoT platform providers and telecom giants that offer similar connectivity solutions. Its relatively small scale compared to multinational competitors could limit its ability to compete on pricing and global reach. Soracom's strong position in Japan provides a solid base, but expanding internationally will require significant investment and strategic partnerships. The company's innovation in eSIM and satellite messaging services could be a key differentiator in the long term.