| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 332.42 | -71 |
| Graham Formula | 914.21 | -21 |
LAC Co., Ltd. (3857.T) is a leading Japanese provider of comprehensive security solutions and system integration services. Founded in 1986 and headquartered in Tokyo, the company specializes in cybersecurity consulting, system design, integration, development, and maintenance. LAC Co. offers advanced network security monitoring, security assessments, and emergency response services, leveraging its proprietary LAC Falcon system to aggregate and analyze logs from security surveillance devices. Operating in the Information Technology Services sector, LAC Co. serves businesses across Japan, ensuring robust protection against cyber threats while also selling and servicing information system-related products. With a market capitalization of approximately ¥34.9 billion, the company plays a critical role in Japan's cybersecurity landscape, addressing the growing demand for digital security amid increasing cyber risks.
LAC Co., Ltd. presents a stable investment opportunity within Japan's cybersecurity sector, supported by consistent revenue growth and a strong balance sheet. The company's ¥49.5 billion revenue and ¥1.38 billion net income in FY 2024 reflect steady performance, while its low beta (0.36) suggests lower volatility compared to the broader market. LAC Co. benefits from recurring revenue streams through maintenance and monitoring services, though its growth may be constrained by its domestic focus. The dividend yield, supported by a ¥26 per share payout, adds appeal for income-focused investors. However, competition from larger global players and limited international exposure could pose long-term challenges. Investors should weigh the company's niche expertise against potential scalability limitations.
LAC Co. holds a competitive advantage in Japan's cybersecurity market through its specialized, end-to-end security solutions and deep regional expertise. Its proprietary LAC Falcon system enhances its value proposition by providing integrated log analysis, differentiating it from generic service providers. The company's long-standing relationships with Japanese enterprises and government entities reinforce its market positioning. However, LAC Co. faces competition from larger IT service firms with broader global resources and R&D capabilities. Its domestic focus limits exposure to international cybersecurity trends but also insulates it from foreign competition to some extent. The company's moderate scale (compared to multinational peers) may restrict its ability to invest in cutting-edge technologies like AI-driven security at the same pace as global leaders. Nonetheless, its consultative approach and localized support remain key strengths in serving Japan's unique regulatory and business environment.