| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 969.89 | 62 |
| Intrinsic value (DCF) | 279.68 | -53 |
| Graham-Dodd Method | 527.43 | -12 |
| Graham Formula | n/a |
Riskmonster.com is a Japan-based company specializing in credit management, ASP cloud services, and business process outsourcing (BPO). Headquartered in Tokyo, the company provides corporate ratings backed by bankruptcy records, cloud-based solutions, and consulting services tailored for credit risk assessment and management. Its offerings include digital data creation, portfolio analysis, credit guarantee services, and anti-social checks, catering to businesses seeking robust financial risk mitigation. Additionally, Riskmonster.com operates a business portal offering groupware solutions and employee training support. Founded in 2000, the company has established itself as a key player in Japan's credit management and consulting services sector, leveraging technology to enhance corporate financial decision-making. With a market cap of approximately ¥3.75 billion, Riskmonster.com serves a niche yet critical segment of the Industrials sector, combining data-driven insights with cloud-based efficiency.
Riskmonster.com presents a specialized investment opportunity in Japan's credit management and consulting services market. The company's diversified revenue streams—spanning ASP cloud services, BPO, and credit risk solutions—provide stability, though its modest net income (¥160.9 million) and high capital expenditures (¥-942.9 million) suggest aggressive reinvestment. With a low beta (0.669), the stock may offer defensive characteristics, but its small market cap limits liquidity. The dividend yield (~2.8% at current share price) adds appeal, but investors should weigh the competitive pressures in Japan's crowded BPO and fintech sectors. Operating cash flow (¥812.4 million) and a solid cash position (¥1.72 billion) mitigate near-term risks, yet growth depends on scaling its cloud offerings amid rising digital transformation demand.
Riskmonster.com competes in Japan's credit management and BPO markets by combining niche expertise with cloud-based scalability. Its competitive edge lies in integrated services—from bankruptcy data-backed ratings to anti-social checks—which few rivals offer as a bundled solution. However, the company faces stiff competition from larger IT service providers and global credit bureaus. Its ASP/cloud services differentiate it from traditional consultancies, but adoption hinges on convincing SMEs to transition from legacy systems. The capital-intensive nature of its business (evidenced by high capex) could strain margins if revenue growth lags. Riskmonster.com's localization and regulatory familiarity in Japan provide a moat against foreign entrants, but domestic players with deeper pockets may replicate its hybrid credit-tech model. Its BPO segment, while profitable, competes on cost efficiency against offshore providers. Long-term success will depend on leveraging its proprietary data for AI-driven credit analytics, a space where incumbents like Tokyo Shoko Research dominate.