Stock Analysis & Valuation Cyber Com Co., Ltd. (3852.T)

• Previous Close: ¥1,904.00
• Sector Valuation Confidence Level: Low

Valuation method	Value, ¥	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	1035.38	-46
Graham Formula	1486.36	-22

Strategic Investment Analysis

Company Overview

Cyber Com Co., Ltd. is a Japanese software development company specializing in communication, control, and business software solutions. Headquartered in Yokohama and operating as a subsidiary of Fuji Soft Incorporated, Cyber Com provides a suite of products including Cyber CTI for call center functions, Cyber IP-PBX for office phone cost reduction, and Cyber Position Navi for location tracking. The company also offers cloud services and gateway equipment, catering primarily to the Japanese market. Founded in 1978, Cyber Com has established itself as a niche player in Japan's competitive software application sector, focusing on enterprise communication efficiency. With a market capitalization of approximately ¥15.3 billion, the company serves businesses seeking cost-effective telecommunication and workflow optimization tools. Its solutions are tailored for domestic enterprises, leveraging Japan's advanced IT infrastructure.

Investment Summary

Cyber Com Co., Ltd. presents a mixed investment profile. The company operates in a competitive niche within Japan's software sector, with steady revenue of ¥16.6 billion in FY 2022 and net income of ¥804 million. However, negative operating cash flow (-¥53 million) raises liquidity concerns, though it maintains a strong cash position (¥2 billion) and zero debt. The stock's beta of 0.757 suggests lower volatility than the broader market, which may appeal to conservative investors. Dividend yield is modest, with ¥42 per share distributed. While Cyber Com benefits from its specialized product suite and Fuji Soft's backing, its reliance on the domestic market and modest growth metrics may limit upside potential. Investors should weigh its stable niche positioning against limited international scalability.

Competitive Analysis

Cyber Com Co., Ltd. competes in Japan's enterprise communication and business software market, differentiating itself through specialized telephony and call center solutions. Its competitive advantage lies in its integrated product ecosystem (e.g., Cyber CTI, Cyber IP-PBX) tailored for Japanese business workflows, offering cost efficiency for SMEs. However, the company faces intense competition from larger global SaaS providers and domestic IT service firms. Its subsidiary status under Fuji Soft provides resource access but may limit strategic agility. Cyber Com's zero debt and strong cash reserves offer financial stability, but negative operating cash flow indicates potential inefficiencies. The company's niche focus shields it from broad competition but caps market expansion. Its products are well-regarded domestically, yet lack global brand recognition. Competitors with broader cloud portfolios or AI-driven communication tools could disrupt its market position. Cyber Com's longevity (founded in 1978) and deep understanding of Japanese corporate needs remain key strengths, but innovation pace and scalability are critical challenges.

Major Competitors

• FUJISOFT INCORPORATED (9749.T): Fuji Soft (parent company of Cyber Com) is a larger Japanese IT services provider with broader capabilities in system integration and software development. While Fuji Soft offers scale and diversified revenue streams, its size may reduce focus on niche communication products where Cyber Com specializes. Fuji Soft's resources support Cyber Com but also create potential conflicts in customer targeting.
• OBIC Co., Ltd. (4684.T): OBIC provides business software solutions in Japan, competing in enterprise workflow optimization. It has stronger financials (higher revenue and net income) but lacks Cyber Com's specialized telephony products. OBIC's broader software suite gives it cross-selling advantages, while Cyber Com retains deeper expertise in communication systems.
• GMO Internet, Inc. (3903.T): GMO Internet offers cloud and communication services, overlapping with Cyber Com's offerings. GMO has a stronger cloud infrastructure and internet services portfolio but less focus on dedicated business telephony solutions. Its larger scale and diversified operations pose competitive pressure, though Cyber Com maintains an edge in customized call center software.
• Dentsu Soken Inc. (4812.T): Dentsu Soken provides IT consulting and system integration services, including communication solutions. It competes with Cyber Com in enterprise software but with more emphasis on consulting. Dentsu Soken's stronger consulting arm gives it client acquisition advantages, while Cyber Com's product-centric model may yield higher margins in its niche.