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Stock Analysis & ValuationMacromill, Inc. (3978.T)

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¥1,274.00
Sector Valuation Confidence Level
High
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1869.7147
Intrinsic value (DCF)486.78-62
Graham-Dodd Methodn/a
Graham Formula949.77-25

Strategic Investment Analysis

Company Overview

Macromill, Inc. is a leading global provider of marketing research and digital marketing solutions, headquartered in Tokyo, Japan. Specializing in neuro research services, the company leverages advanced technologies like electroencephalograms to analyze neural activity reactions, offering insights beyond traditional questionnaires and interviews. Macromill's diverse service portfolio includes Internet and offline research, digital marketing research, database research, and medical research, alongside O2O promotion and web advertisement services. The company's innovative offerings, such as Movie Karte for video advertisement effectiveness measurement and Macromill Ads for digital advertising planning and distribution, position it as a key player in the advertising agencies sector. With a strong presence in the Communication Services industry, Macromill collaborates with major partners like Sumitomo Mitsui Card Co., Ltd., enhancing its market reach and technological capabilities. Founded in 2000, Macromill continues to drive growth through cutting-edge research methodologies and data-driven marketing solutions.

Investment Summary

Macromill, Inc. presents a compelling investment opportunity with its niche focus on neuro research and digital marketing solutions. The company's diversified service offerings and technological advancements provide a competitive edge in the advertising research sector. With a market cap of approximately ¥48.9 billion and a beta of 0.395, Macromill exhibits lower volatility compared to the broader market. The company reported revenue of ¥43.9 billion and net income of ¥2.3 billion in the latest fiscal year, with a diluted EPS of ¥59.86. Operating cash flow stands at ¥8.3 billion, supported by robust cash reserves of ¥10.4 billion. However, investors should note the total debt of ¥33.1 billion, which could pose liquidity risks. The dividend yield, with a dividend per share of ¥15, adds to the attractiveness for income-focused investors. Macromill's growth potential is underpinned by its innovative research methodologies and expanding digital marketing services, making it a noteworthy consideration for long-term investors.

Competitive Analysis

Macromill, Inc. competes in the highly fragmented advertising research and digital marketing industry, where differentiation through technology and specialized services is critical. The company's competitive advantage lies in its neuro research capabilities, which are relatively rare in the market, providing deeper consumer insights than traditional methods. Macromill's integration of brain wave data in services like Movie Karte sets it apart from competitors relying solely on surveys and interviews. The company's collaboration with Sumitomo Mitsui Card Co., Ltd. enhances its credibility and access to broader datasets. However, Macromill faces competition from larger global players with more extensive resources and established client bases. The company's focus on Japan and Asia-Pacific markets limits its global reach compared to multinational competitors. To maintain its edge, Macromill must continue investing in R&D and expanding its digital marketing solutions. The advertising industry's shift towards data-driven decision-making favors Macromill's expertise, but the company must navigate challenges like high competition and the need for continuous innovation to sustain growth.

Major Competitors

  • Z Holdings Corporation (4689.T): Z Holdings Corporation, the parent company of Yahoo Japan and Line, offers extensive digital marketing and advertising services. Its strengths include a vast user base and integrated digital platforms, providing comprehensive data analytics. However, its focus on broader digital services may dilute its specialization in neuro research compared to Macromill.
  • Rakuten Group, Inc. (4755.T): Rakuten Group operates a diverse ecosystem including e-commerce, fintech, and digital advertising. Its strengths lie in its large customer base and cross-platform data integration. However, its advertising services are more generalized, lacking the specialized neuro research capabilities that Macromill offers.
  • Dentsu Group Inc. (4324.T): Dentsu Group is a global advertising giant with a strong presence in Japan and internationally. Its strengths include extensive client relationships and a full-service advertising portfolio. However, its size may lead to less agility in adopting niche technologies like neuro research compared to Macromill.
  • DeNA Co., Ltd. (2432.T): DeNA specializes in mobile and online services, including digital advertising. Its strengths include expertise in mobile platforms and gaming. However, its focus on entertainment and gaming limits its overlap with Macromill's specialized research services.
  • CyberAgent, Inc. (4751.T): CyberAgent operates in internet advertising, media, and gaming. Its strengths include a strong digital media presence and innovative ad technologies. However, like others, it lacks the neuro research specialization that differentiates Macromill in the market.
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