| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 6874.62 | 63 |
| Intrinsic value (DCF) | 2195.25 | -48 |
| Graham-Dodd Method | 6303.06 | 49 |
| Graham Formula | 11824.90 | 180 |
Applied Co., Ltd. (3020.T) is a leading Japanese technology distributor specializing in personal computers, peripheral equipment, and digital products. Headquartered in Fukuoka City, the company operates across multiple segments, including the planning, development, manufacture, and wholesale of private-brand PCs and digital products. Additionally, Applied Co. provides procurement, advertising, and sales services for third-party manufacturers, along with network system construction, maintenance, and remote services. Founded in 1977, the company has established itself as a key player in Japan's technology distribution sector, leveraging its expertise in both hardware and IT services. With a market capitalization of ¥8.64 billion, Applied Co. serves a niche yet critical role in Japan's tech ecosystem, bridging manufacturers and end-users with tailored solutions.
Applied Co., Ltd. presents a stable investment opportunity within Japan's technology distribution sector, supported by consistent revenue streams and a solid net income of ¥1.21 billion in FY 2024. The company's low beta (0.238) suggests lower volatility compared to broader markets, appealing to risk-averse investors. However, its modest market cap and limited international presence may constrain growth potential. The dividend yield, with a payout of ¥90 per share, adds income appeal, but investors should monitor competitive pressures and Japan's domestic tech demand trends. The company's strong cash position (¥1.9 billion) and manageable debt (¥654 million) provide financial flexibility, though capital expenditures remain minimal, indicating cautious expansion.
Applied Co., Ltd. competes in Japan's fragmented technology distribution market, where differentiation hinges on supply chain efficiency, private-brand offerings, and value-added services like IT support. The company's competitive advantage lies in its integrated model, combining hardware distribution with network and remote services—a niche that mitigates reliance on pure product sales. However, its regional focus limits scale compared to global distributors. Applied Co.'s private-brand PC segment offers higher margins but faces stiff competition from larger OEMs and e-commerce platforms. The company's strength in B2B relationships and localized service provides a moat, but its lack of diversification outside Japan and modest R&D investment could hinder long-term resilience against tech shifts (e.g., cloud migration). Competitors with broader geographic reach or stronger digital platforms may outperform in scalability.