| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1401.11 | 25 |
| Intrinsic value (DCF) | 1103.36 | -1 |
| Graham-Dodd Method | 1639.57 | 46 |
| Graham Formula | 607.25 | -46 |
Daiwa Computer Co., Ltd. (3816.T) is a Japan-based IT company specializing in mission-critical business applications, web-based systems, and software development. Founded in 1977 and headquartered in Takatsuki, Japan, the company provides a range of services including system consulting, SaaS/ASP solutions, and package software development. Additionally, Daiwa Computer engages in agricultural production and sales, diversifying its business model. Operating in the competitive Software - Application sector, the company serves domestic clients with tailored IT solutions, emphasizing reliability and operational support. With a market capitalization of approximately ¥4.5 billion, Daiwa Computer maintains a stable financial position, supported by consistent revenue streams from its diversified IT and agricultural operations. The company’s low beta (0.222) suggests lower volatility compared to the broader market, appealing to risk-averse investors.
Daiwa Computer presents a niche investment opportunity in Japan’s IT sector, characterized by stable earnings and a diversified business model. The company’s strong cash position (¥3.88 billion) and low debt (¥79.6 million) underscore financial resilience. However, its modest market cap and limited international presence may constrain growth potential compared to larger peers. The diluted EPS of ¥88.29 and a dividend yield supported by a ¥19 per share payout indicate shareholder returns, but investors should weigh these against the company’s slower growth trajectory and domestic focus. The low beta suggests defensive positioning, making it a potential hedge in volatile markets.
Daiwa Computer competes in Japan’s fragmented IT services market, where differentiation hinges on specialized software solutions and client relationships. Its focus on mission-critical systems and agricultural diversification provides niche stability but limits scalability against global SaaS providers. The company’s competitive edge lies in deep local market expertise and long-standing client trust, though it lacks the R&D scale of larger firms like OBIC Co. (4684.T). While its cash-rich balance sheet allows for organic investments, Daiwa’s growth is tempered by reliance on the domestic market and modest innovation spend. Competitors with broader geographic reach or cloud-centric models may outperform in high-growth segments, but Daiwa’s profitability (10.4% net margin) and low leverage position it well for steady, low-risk operations.