| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | 1640696.45 | 156008 |
| Graham-Dodd Method | 578.62 | -45 |
| Graham Formula | 1861.10 | 77 |
Change Inc. (3962.T) is a Tokyo-based IT human resources development and training company specializing in cutting-edge technologies such as artificial intelligence, robotics, IoT, big data, cloud computing, and cybersecurity. Founded in 2003, the company plays a crucial role in Japan's rapidly evolving IT sector by equipping professionals with essential skills for digital transformation. Change Inc. leverages proprietary training libraries and algorithmic technologies to deliver specialized programs tailored to industry demands. With Japan's increasing focus on digital upskilling and IT modernization, the company is well-positioned to benefit from corporate and governmental investments in workforce development. Its strong cash position (¥22.97 billion) and profitability (¥3.86 billion net income in FY2023) underscore its financial stability in the competitive IT education market.
Change Inc. presents an attractive investment case due to its niche focus on high-demand IT training in Japan, a market with growing digital transformation needs. The company's strong profitability (19.3% net margin) and solid balance sheet (low debt-to-equity ratio) mitigate financial risks. However, negative operating cash flow (-¥1.14 billion) and significant capital expenditures (-¥3.19 billion) raise questions about cash generation efficiency. The stock's low beta (0.582) suggests relative stability compared to the broader market, while the 2.8% dividend yield provides income appeal. Investors should monitor the company's ability to convert training demand into sustainable cash flows and its expansion into emerging tech domains.
Change Inc. competes in Japan's fragmented IT training market by differentiating through its focus on advanced, practical technology education rather than generic IT skills. The company's competitive advantage stems from: 1) Specialized curriculum in high-growth areas (AI, IoT, cybersecurity), 2) Strong industry connections for practical training, and 3) Financial resources to develop proprietary training materials. However, it faces challenges from both traditional education providers expanding into IT and global online learning platforms. Change's domestic focus limits international competition but also caps growth potential outside Japan. The company's ¥83.4 billion market valuation suggests investors recognize its leadership position in Japan's professional IT education space, though scalability remains a key challenge given the hands-on nature of its training model. Its ability to continuously update course offerings to match technological evolution will be critical for maintaining competitive positioning.