| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 5865.79 | 4 |
| Intrinsic value (DCF) | 16203.01 | 188 |
| Graham-Dodd Method | 782.52 | -86 |
| Graham Formula | 4632.02 | -18 |
SRA Holdings, Inc. (3817.T) is a leading Japanese IT services company specializing in systems development, operation/administration, and product solutions marketing. Headquartered in Tokyo, SRA provides a diverse portfolio of services, including financial IT, embedded systems, academic IT solutions, and cloud security. The company serves both domestic and international markets with innovative solutions like Cavirin Pulsar for hybrid cloud security, UniVision for university administration, and HEALTHPLAYER for healthcare data analytics. With a strong focus on automation and digital transformation, SRA offers tools such as TestDepot for embedded software testing and P-Con for paperless document management. Founded in 1991, SRA has established itself as a trusted partner for enterprises seeking cutting-edge IT infrastructure and consulting services. Operating in the competitive Information Technology Services sector, SRA differentiates itself through niche expertise in academia, healthcare, and compliance solutions. The company’s robust financial performance and consistent dividend payouts make it an attractive player in Japan’s growing IT services market.
SRA Holdings presents a stable investment opportunity with its diversified IT service offerings and strong financial metrics. The company boasts a market cap of ¥56.9 billion, with solid revenue of ¥47.1 billion and net income of ¥4.6 billion in FY 2024. Its low beta (0.323) suggests lower volatility compared to the broader market, appealing to risk-averse investors. SRA maintains a healthy balance sheet with ¥16.3 billion in cash and minimal debt (¥90 million), ensuring financial flexibility. The company’s dividend yield is attractive, with a dividend per share of ¥180. However, risks include intense competition in Japan’s IT services sector and potential margin pressures from rising labor costs. Investors should monitor SRA’s ability to scale its niche solutions (e.g., healthcare and academic IT) internationally to sustain growth.
SRA Holdings competes in Japan’s crowded IT services market by focusing on specialized verticals like academia, healthcare, and compliance. Its competitive advantage lies in proprietary solutions such as Cavirin Pulsar (hybrid cloud security) and UniVision (university administration systems), which cater to underserved niches. Unlike generalist IT firms, SRA’s expertise in embedded systems and automated testing tools (e.g., TestDepot) provides differentiation. The company’s strong cash position allows for R&D investments in emerging areas like AI and BI, though it lags behind global giants in scale. SRA’s domestic focus limits international exposure but shields it from currency risks. Competitors like NTT Data and Fujitsu offer broader portfolios, but SRA’s agility and vertical-specific solutions give it an edge in targeted segments. Challenges include competing with larger firms for enterprise contracts and adapting to rapid technological shifts in cloud and AI.