| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 528.11 | 10 |
| Intrinsic value (DCF) | 330.71 | -31 |
| Graham-Dodd Method | 243.15 | -49 |
| Graham Formula | 60.77 | -87 |
Ecomic Co., Ltd (3802.T) is a Japan-based company specializing in payroll process outsourcing and business process optimization services. Operating primarily in Japan, Ecomic serves businesses through its two core segments: BPO (Business Process Outsourcing) and Software/Hardware Development. The company offers a range of services, including payroll processing, year-end tax adjustments, residential tax collection, and My Number (Japan's social security ID) collection services. Founded in 1997 and headquartered in Sapporo, Ecomic has established itself as a niche player in Japan's growing BPO and HR tech sector. With a market capitalization of approximately ¥2.13 billion, the company caters to small and medium-sized enterprises seeking cost-effective payroll and tax compliance solutions. As Japan's workforce continues to digitize and regulatory complexity increases, Ecomic is well-positioned to benefit from sustained demand for outsourced payroll administration services.
Ecomic presents a specialized investment opportunity in Japan's business services sector, with stable revenue streams from recurring payroll processing contracts. The company's low beta (0.185) suggests defensive characteristics, while its strong cash position (¥1.49 billion) and modest debt (¥114 million) provide financial stability. However, investors should note the company's small market cap limits liquidity, and growth prospects may be constrained by Japan's shrinking workforce. The dividend yield appears modest (dividend per share ¥13), and the P/E ratio would need comparison with sector peers for full valuation context. The company's niche focus provides insulation from broader economic cycles but may limit scalability beyond the Japanese market.
Ecomic competes in Japan's fragmented payroll outsourcing market, differentiating itself through specialized tax-related services and regional expertise from its Sapporo base. The company's competitive advantage lies in its integrated service offering combining BPO with proprietary software solutions, though its small scale compared to multinational HR service providers limits enterprise reach. Ecomic's deep understanding of Japan's complex payroll tax regulations provides a moat against generalist BPO firms, while its cash-rich balance sheet allows for selective technology investments. However, the company faces intensifying competition from cloud-based payroll platforms that automate many traditional outsourcing functions. Ecomic's positioning as a full-service provider for SMEs that prefer hands-on service over self-service platforms remains relevant but requires continuous investment in digital transformation to maintain competitiveness against both legacy outsourcers and tech disruptors.