| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1949.27 | 6 |
| Intrinsic value (DCF) | 1800528.16 | 98128 |
| Graham-Dodd Method | 1070.37 | -42 |
| Graham Formula | 1282.65 | -30 |
Fields Corporation (2767.T) is a Japan-based company specializing in content-related businesses, primarily focused on the pachinko and pachislot (PS) machine industry. Headquartered in Tokyo, the company operates across multiple segments, including the planning, development, and sale of PS machines, software development for gaming, fitness gym management, internet-based information services, and real estate asset management. Fields Corporation also engages in media production, including movies and TV content, as well as character goods. Formerly known as Toyo Shoji Co., Ltd., the company rebranded in 2001 to reflect its diversified business model. With a market capitalization of approximately ¥111.18 billion, Fields Corporation plays a significant role in Japan's consumer cyclical sector, particularly in the gambling and entertainment industries. The company's integrated approach—combining gaming hardware, digital content, and ancillary services—positions it as a key player in Japan's niche gaming market.
Fields Corporation presents a mixed investment profile. On the positive side, the company operates in Japan's well-established pachinko and pachislot market, which has historically been resilient despite economic fluctuations. With a beta of 0.136, the stock exhibits low volatility relative to the broader market, potentially appealing to risk-averse investors. The company reported ¥141.92 billion in revenue and ¥11.55 billion in net income for the fiscal year ending March 2024, with a diluted EPS of ¥176.11. However, challenges include regulatory risks in Japan's gambling sector, declining interest in traditional pachinko among younger demographics, and modest operating cash flow (¥5.56 billion) relative to revenue. The dividend yield, at ¥50 per share, may attract income-focused investors, but the company's growth prospects depend on its ability to diversify beyond its core gaming business.
Fields Corporation's competitive advantage lies in its vertically integrated business model, combining hardware (PS machines) with proprietary software and ancillary services like fitness gyms and real estate. This diversification helps mitigate risks associated with fluctuations in gaming demand. However, the company faces intense competition in Japan's pachinko and pachislot market, where larger rivals dominate with greater R&D budgets and brand recognition. Fields' relatively small market cap (¥111.18 billion) limits its ability to compete on scale compared to industry giants. The company's real estate and media ventures provide supplementary revenue streams but are not yet significant growth drivers. Regulatory scrutiny on gambling-related businesses in Japan remains a persistent risk, potentially constraining expansion. Fields' low beta suggests stability, but its long-term success hinges on innovation in digital gaming and diversification into higher-growth segments. The company's cash position (¥34.91 billion) and manageable debt (¥13.90 billion) provide financial flexibility, but its capital expenditures (¥-1.53 billion) indicate limited aggressive investment in new technologies.