| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3734.96 | 33 |
| Intrinsic value (DCF) | 4661.89 | 66 |
| Graham-Dodd Method | 296.46 | -89 |
| Graham Formula | 4321.26 | 54 |
Startia Holdings, Inc. is a Tokyo-based IT services company specializing in digital marketing and IT infrastructure solutions. Operating in Japan and internationally, the company offers a diverse portfolio of digital marketing tools, including marketing automation software, app creation platforms, and content management systems. Its IT infrastructure segment provides comprehensive support services, covering copiers, network construction, cloud maintenance, and office design. Formerly known as Startia, Inc., the company rebranded as Startia Holdings in 2018, reflecting its expanded business scope. With a market capitalization of approximately ¥24.6 billion, Startia serves businesses seeking integrated IT and digital transformation solutions. The company's dual focus on marketing technology and IT infrastructure positions it uniquely in Japan's competitive IT services sector, catering to SMEs and enterprises navigating digitalization.
Startia Holdings presents a moderate investment case with its diversified IT service offerings and solid profitability (¥1.55B net income in FY2024). The company maintains a healthy balance sheet with ¥7.37B cash against ¥4.15B debt, and generates strong operating cash flow (¥2.52B). Its 0.704 beta suggests lower volatility than the broader market, potentially appealing to risk-conscious investors. However, the company operates in a highly competitive IT services sector where differentiation is challenging. The ¥102/share dividend indicates a shareholder-friendly policy, but growth investors may seek higher EPS expansion beyond the current ¥165.32. Market positioning as a mid-tier IT provider could limit pricing power against larger competitors.
Startia Holdings competes in Japan's fragmented IT services market by combining digital marketing tools with infrastructure services - an uncommon dual focus that provides cross-selling opportunities. Its competitive edge lies in integrated solutions for SMEs undergoing digital transformation, avoiding direct competition with global IT giants. The company's marketing automation and app creation software compete with specialized SaaS providers, while its IT infrastructure services face competition from both large system integrators and local IT vendors. Startia's relatively small scale (¥19.6B revenue) limits R&D spending compared to multinational peers, forcing reliance on niche customization and responsive service. Its Tokyo base provides strong local market knowledge but may hinder international expansion against globally networked competitors. The AR creation and document management software offerings differentiate Startia in creative-tech segments, though these represent smaller revenue shares. Maintaining profitability (7.9% net margin) in this competitive landscape requires careful cost management given moderate pricing power.