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Stock Analysis & ValuationPlanet, Inc. (2391.T)

Professional Stock Screener
Previous Close
¥1,236.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1417.8115
Intrinsic value (DCF)776.41-37
Graham-Dodd Method506.73-59
Graham Formula467.39-62

Strategic Investment Analysis

Company Overview

Planet, Inc. (2391.T) is a Tokyo-based leader in electronic data interchange (EDI) services, specializing in streamlining transactions between manufacturers, wholesalers, and retailers in Japan. Founded in 1985, the company provides critical EDI solutions such as Basic EDI, MITEOS, and Web Ordering, facilitating seamless ordering, shipping, billing, and payment processes. Planet, Inc. also offers value-added services like the Business Partner Database and Product Database, which standardize business codes and product information across industries like cosmetics, pet supplies, and OTC medicines. Operating in the Information Technology Services sector, Planet, Inc. plays a pivotal role in Japan's supply chain digitization, enhancing efficiency for businesses through its proprietary platforms. With a strong market position and a focus on B2B transactions, the company is a key enabler of Japan's digital commerce ecosystem.

Investment Summary

Planet, Inc. presents a stable investment opportunity with its niche dominance in Japan's EDI services market. The company boasts a strong balance sheet with zero debt and a healthy cash position (¥2.68 billion), supporting its consistent dividend payout (¥43 per share). Its low beta (0.152) indicates resilience to market volatility, appealing to risk-averse investors. However, growth may be constrained by its Japan-centric focus and the maturity of its core EDI market. Revenue (¥3.17 billion) and net income (¥458 million) reflect steady but modest growth, suggesting limited upside without geographic or product expansion. Investors should weigh its reliable cash flow (¥625 million operating cash flow) against potential saturation risks in its domestic market.

Competitive Analysis

Planet, Inc. holds a defensible position in Japan's EDI sector due to its deep integration with local supply chains and long-standing client relationships. Its competitive advantage stems from proprietary databases (e.g., Business Partner and Product Databases) that create switching costs for users. The company's focus on vertical-specific solutions (e.g., cosmetics, pet supplies) differentiates it from generic EDI providers. However, its Japan-only footprint limits scalability compared to global competitors. While its asset-light model (minimal capex at ¥-2 million) ensures high margins, Planet faces emerging threats from cloud-based ERP providers (e.g., SAP, Oracle) that bundle EDI functionalities. Its lack of debt and strong cash reserves provide flexibility to invest in innovation, but slower adoption of next-gen technologies (e.g., blockchain-based EDI) could erode its edge over time. Competitively, Planet's strength lies in localization, but it must expand its tech stack to retain relevance.

Major Competitors

  • SCSK Corporation (9719.T): SCSK offers broader IT services including EDI, competing directly with Planet in Japan. Its larger scale and diversified portfolio (e.g., cloud, cybersecurity) give it cross-selling opportunities, but it lacks Planet's vertical-specific EDI specialization. SCSK's higher R&D spend could threaten Planet's niche dominance long-term.
  • GungHo Online Entertainment (3765.T): Primarily a gaming company, GungHo's subsidiary GMO Internet provides payment and EDI solutions. Its fintech expertise poses an indirect threat, especially in digital payments integration. However, its focus on entertainment dilutes its EDI competitiveness versus Planet's dedicated approach.
  • SAP SE (SAP): SAP's global ERP solutions include embedded EDI capabilities, appealing to multinationals. Its scale and AI-driven supply chain tools overshadow Planet's offerings for large enterprises. However, SAP's complexity and cost make Planet the preferred choice for Japanese SMEs seeking localized, affordable EDI.
  • Oracle Corporation (ORCL): Oracle's NetSuite and EDI solutions compete in enterprise supply chain management. Its cloud infrastructure and global reach outmatch Planet, but Oracle's limited Japan-specific customization gives Planet an edge in domestic mid-market transactions.
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