| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 6194.72 | -9 |
| Intrinsic value (DCF) | 2219.26 | -67 |
| Graham-Dodd Method | 4704.81 | -31 |
| Graham Formula | 5290.70 | -22 |
Pacific Systems Corporation (3847.T) is a Japan-based IT services company specializing in system sales, software development, and equipment sales. Operating as a subsidiary of Taiheiyo Cement Corporation, the company provides a diverse range of solutions, including image processing systems, CRM packages, ERP integration, and agricultural production support systems. Serving industries such as manufacturing, distribution, and finance, Pacific Systems leverages its expertise in system integration and security measures to deliver tailored IT solutions. The company also offers hardware sales, including PCs and servers, alongside power monitoring and digital photogrammetry services. Headquartered in Saitama, Japan, Pacific Systems has built a niche in the domestic IT services market with a focus on operational efficiency and industry-specific applications. With a market cap of approximately ¥6.9 billion, the company remains a key player in Japan's technology sector, combining software innovation with hardware distribution.
Pacific Systems Corporation presents a stable but niche investment opportunity within Japan's IT services sector. The company's diversified offerings, including CRM, ERP, and industry-specific solutions, provide steady revenue streams, supported by a net income of ¥580 million and strong operating cash flow of ¥1.3 billion. However, its small market cap and limited international presence may constrain growth potential. The negative beta (-0.017) suggests low correlation with broader market movements, potentially offering defensive characteristics. Investors may appreciate the ¥134 dividend per share, but the company's reliance on the domestic market and competition from larger IT service providers pose risks. Capital expenditures remain modest, indicating a focus on maintaining rather than aggressively expanding operations.
Pacific Systems Corporation operates in a highly competitive IT services market in Japan, where it competes with both large multinational firms and specialized domestic providers. Its competitive advantage lies in its industry-specific solutions, such as mine/crushed industry and agricultural support systems, which cater to niche demands. The company's subsidiary relationship with Taiheiyo Cement Corporation may provide stability and cross-industry opportunities. However, its small scale limits R&D and global expansion capabilities compared to larger rivals. Pacific Systems' focus on system integration and security measures differentiates it from generic IT service providers, but it lacks the cloud and AI-driven innovation seen in leading competitors. The company's financial health is solid, with ample cash reserves and low debt, but revenue growth may be constrained without significant technological differentiation or international diversification.