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Stock Analysis & ValuationGreenBee, Inc. (3913.T)

Professional Stock Screener
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¥1,388.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1556.3012
Intrinsic value (DCF)425.38-69
Graham-Dodd Method659.78-52
Graham Formula205.38-85

Strategic Investment Analysis

Company Overview

GreenBee, Inc. (3913.T) is a Tokyo-based software development company specializing in AI-driven recognition and IoT solutions. Formerly known as sMedio, Inc., the company rebranded in April 2024 to reflect its focus on innovative technologies, including facial recognition (sMedio Face Detector), emotion and motion analysis, and object tracking. GreenBee also provides multimedia solutions like sMedio True VR for virtual reality and IoT applications such as temperature management for cold chains and CO2 monitoring. Operating in Japan's competitive software sector, GreenBee serves industries like retail, healthcare, and energy with niche AI and connectivity solutions. With a market cap of ¥1.82 billion, the company combines R&D-driven innovation with practical applications, though its small scale and domestic focus present both opportunities and risks in the expanding AI and IoT markets.

Investment Summary

GreenBee, Inc. presents a high-risk, high-reward opportunity in Japan's AI and IoT software niche. Its strengths include a diversified portfolio of proprietary AI recognition tools (e.g., facial, emotion, motion) and IoT solutions for healthcare and logistics, supported by ¥932M in cash and no debt. However, with a modest net income of ¥63.8M (7.9% margin) and zero dividends, the company prioritizes reinvestment over shareholder returns. The low beta (0.232) suggests limited correlation to broader markets, but its small market cap (¥1.82B) and lack of international presence expose it to competition from larger global players. Investors should weigh its innovative pipeline against scalability challenges in a crowded tech sector.

Competitive Analysis

GreenBee competes in Japan's AI and IoT software segment by focusing on specialized recognition technologies (e.g., facial, motion) and vertical-specific IoT solutions. Its competitive edge lies in proprietary algorithms like sMedio True VR and concrete AI analysis, which cater to local industries like retail cold chains and energy monitoring. However, the company lacks the scale and brand recognition of global AI leaders, relying instead on niche applications. Its ¥806M revenue is dwarfed by multinational competitors, and its R&D budget is likely constrained. While partnerships with Japanese firms (e.g., in healthcare logistics) provide stability, GreenBee's growth depends on expanding its AI offerings beyond facial recognition and securing larger enterprise contracts. The absence of debt is a strength, but limited marketing reach and dependence on Japan's tech adoption pace are key vulnerabilities.

Major Competitors

  • CyberAgent, Inc. (4751.T): CyberAgent dominates Japan's digital advertising and AI-driven media, with stronger financials (¥723B market cap) and diversified ventures like game development. Its AI focus overlaps with GreenBee in facial recognition for ads, but its scale and ad-tech expertise give it an edge. Weakness: Less specialization in industrial IoT.
  • mixi, Inc. (2121.T): Known for social apps and gaming, mixi invests in AI for user engagement (e.g., emotion analysis). Its strength lies in consumer-facing applications, contrasting with GreenBee's B2B focus. However, mixi's declining social media relevance limits its AI R&D budget compared to niche players like GreenBee.
  • Nexon Co., Ltd. (3659.T): A gaming giant leveraging AI for NPC behavior and VR, Nexon's resources (¥2.5T market cap) overshadow GreenBee's. Its motion recognition tech competes indirectly with GreenBee's offerings, but Nexon prioritizes entertainment over industrial applications. Weakness: Limited interest in non-gaming AI solutions.
  • KDDI Corporation (9433.T): KDDI's IoT platforms for smart cities and logistics rival GreenBee's solutions. Its telecom infrastructure and enterprise reach are strengths, but its AI capabilities are less specialized. GreenBee's edge lies in customizable recognition software for niche use cases.
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