| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4288.36 | 89 |
| Intrinsic value (DCF) | 670.07 | -71 |
| Graham-Dodd Method | 1661.06 | -27 |
| Graham Formula | n/a |
Kyoritsu Computer & Communication Co., Ltd. (3670.T) is a Tokyo-based IT services provider specializing in management information solutions for corporate clients in Japan. Founded in 1964, the company offers a comprehensive suite of services, including accounting information support, cloud implementation, infrastructure management, and ICT education. Kyoritsu serves diverse industries with its software solutions, communication infrastructure support, and mobile device sales through its DoCoMo shops in Tokyo and Saitama. The company plays a vital role in Japan's digital transformation, helping businesses optimize operations through tailored IT and communication solutions. With a strong focus on corporate clients, Kyoritsu combines technical expertise with industry-specific knowledge, positioning itself as a trusted partner in Japan's competitive IT services sector. The company's hybrid approach—blending cloud services, on-premise solutions, and mobile technology—makes it a flexible provider in an era of rapid digitalization.
Kyoritsu Computer & Communication presents a niche investment opportunity in Japan's IT services market, with stable revenue (¥5.47B) and net income (¥258M). The company maintains a strong cash position (¥1.22B) with minimal debt (¥19.5M), suggesting financial resilience. However, its negative beta (-0.029) indicates low correlation with broader market movements, which may appeal to defensive investors but could limit growth upside. The dividend yield (based on ¥55/share) adds income appeal, but investors should weigh Japan's competitive IT services landscape and Kyoritsu's regional focus. The company's profitability (EPS ¥215.53) and positive operating cash flow (¥645M) are strengths, though its modest market cap (~¥1.88B) suggests it lacks scale compared to global peers.
Kyoritsu Computer & Communication operates in Japan's crowded IT services sector, competing on localized expertise and integrated solutions rather than scale. Its competitive advantage lies in its hybrid service model—combining software, infrastructure support, and mobile sales—which creates cross-selling opportunities with corporate clients. The company's DoCoMo retail presence differentiates it from pure-play IT consultancies, though this also exposes it to Japan's competitive telecom retail market. Kyoritsu's focus on SME and corporate clients provides stability but limits exposure to high-growth digital transformation budgets of large enterprises. Financially, its strong balance sheet and profitability metrics are competitive strengths, but its regional focus in Tokyo/Saitama may constrain growth compared to nationwide players. The company's negative beta suggests its business model is somewhat insulated from economic cycles, likely due to recurring service revenue. However, its lack of international presence makes it vulnerable to domestic competition from larger IT service providers and global cloud platforms expanding in Japan.