| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2059.85 | 22 |
| Intrinsic value (DCF) | 993.10 | -41 |
| Graham-Dodd Method | 287.77 | -83 |
| Graham Formula | 2585.74 | 54 |
Double Standard Inc. (3925.T) is a Tokyo-based business support company specializing in big data solutions and technology-driven service planning for enterprises. Founded in 2012, the company leverages advanced data generation techniques, including HTML and image information processing, database management, and analog media conversion, to deliver actionable insights for businesses. Its core offerings include real-time data acquisition, web change detection, and data analysis support, enabling clients to optimize decision-making and operational efficiency. Operating in Japan's competitive Information Technology Services sector, Double Standard Inc. stands out for its innovative approach to data utilization and system development. With a market capitalization of approximately ¥20.85 billion, the company serves a growing demand for data-driven enterprise solutions in the Technology sector. Its strong cash position (¥4.46 billion) and debt-free balance sheet underscore financial stability, while its dividend payout (¥60 per share) reflects shareholder-friendly policies.
Double Standard Inc. presents a compelling investment case with its niche focus on big data solutions and strong financial metrics. The company boasts a robust net income of ¥1.65 billion, a healthy diluted EPS of ¥122.03, and positive operating cash flow (¥1.44 billion), indicating profitability and efficient operations. Its zero debt and substantial cash reserves (¥4.46 billion) provide a cushion against market volatility, while a low beta (0.243) suggests lower systemic risk compared to the broader market. However, investors should note the company's relatively small market cap (¥20.85 billion), which may limit liquidity, and its concentrated operations in Japan, exposing it to regional economic fluctuations. The dividend yield (~2.9% based on current share price assumptions) adds income appeal, but growth prospects depend on its ability to scale data services internationally and compete with larger global IT service providers.
Double Standard Inc. competes in Japan's IT services market by differentiating itself through specialized big data generation and real-time analytics capabilities. Its competitive advantage lies in proprietary technologies for web change detection and analog media conversion, which are less common among generalist IT service firms. The company's end-to-end service model—combining data collection, analysis, and system development—creates stickiness with clients seeking integrated solutions. However, its small scale (¥7.15 billion revenue) limits R&D budgets compared to multinational peers, potentially hindering innovation pace. While its debt-free status and high cash reserves provide flexibility, Double Standard lacks the global delivery networks of larger competitors, restricting its ability to serve multinational clients. Its focus on the Japanese market is both a strength (deep local expertise) and a weakness (limited diversification). To sustain growth, the company must expand its data-as-a-service offerings and forge partnerships to enhance technological capabilities without overextending its balance sheet.