Stock Analysis & Valuation ALBERT Inc. (3906.T)

• Previous Close: ¥9,160.00
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, ¥	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	176.79	-98
Graham Formula	343.41	-96

Strategic Investment Analysis

Company Overview

ALBERT Inc. (3906.T) is a Tokyo-based company specializing in AI-driven big data analytics and consulting services. Founded in 2005, ALBERT provides cutting-edge solutions in AI, data analysis, and R&D support, catering to industries such as automotive, manufacturing, finance, and communications. The company's flagship offerings include Sugures, an AI-powered chatbot integrated with LINE and other social media platforms, and Takuminome, an AI-based image-recognition service. ALBERT also provides data scientist training, helping businesses leverage AI and big data effectively. With a strategic alliance with SBI Holdings, ALBERT is expanding its footprint in financial services and biotechnology sectors. As a key player in Japan's growing AI and data analytics market, ALBERT is well-positioned to capitalize on increasing demand for digital transformation and automation solutions.

Investment Summary

ALBERT Inc. presents a niche investment opportunity in Japan's AI and big data analytics sector. The company reported JPY 3.34 billion in revenue and JPY 353.7 million in net income for FY 2021, with a diluted EPS of 11.25 JPY. Its strong cash position (JPY 3.25 billion) and minimal debt (JPY 24.5 million) indicate financial stability. However, the lack of dividend payouts may deter income-focused investors. The company's strategic partnership with SBI Holdings enhances its growth prospects, but competition in AI and data analytics is intense. Investors should weigh ALBERT's technological expertise against market saturation risks and the capital-intensive nature of AI R&D.

Competitive Analysis

ALBERT Inc. operates in Japan's competitive AI and data analytics consulting space, where differentiation hinges on technological innovation and industry-specific expertise. The company's competitive advantage lies in its specialized AI solutions, such as Sugures (chatbot) and Takuminome (image recognition), which cater to diverse sectors. Its alliance with SBI Holdings provides access to financial and biotech markets, enhancing cross-industry applicability. However, ALBERT faces stiff competition from larger IT service providers and global AI firms that offer broader portfolios and deeper R&D budgets. The company's focus on Japan limits its geographic diversification, exposing it to domestic economic fluctuations. While its strong cash reserves support sustained innovation, ALBERT must continuously invest in AI advancements to maintain its edge against tech giants and emerging startups.

Major Competitors

• Rakuten Group, Inc. (4755.T): Rakuten offers AI and big data solutions through its ecosystem, including e-commerce, fintech, and communications. Its scale and diversified services pose a challenge to ALBERT's niche focus. However, Rakuten's broader business model may dilute its AI specialization compared to ALBERT's targeted approach.
• mixi, Inc. (2121.T): mixi provides AI-driven social gaming and entertainment platforms. While not a direct competitor in consulting, its AI capabilities in user engagement overlap with ALBERT's chatbot services. mixi's strength lies in consumer applications, whereas ALBERT focuses on B2B solutions.
• Dentsu Group Inc. (4812.T): Dentsu leverages AI for digital marketing and advertising analytics. Its global reach and client base overshadow ALBERT's domestic presence, but Dentsu's broader service range may lack ALBERT's depth in AI-specific consulting.
• Z Holdings Corporation (4689.T): Z Holdings (Yahoo Japan) integrates AI across its search, e-commerce, and media platforms. Its vast user data and resources outpace ALBERT's capabilities, but ALBERT's specialized AI services for industries like manufacturing and finance offer distinct value.