| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 389.58 | 24 |
| Intrinsic value (DCF) | 315.88 | 1 |
| Graham-Dodd Method | 303.24 | -3 |
| Graham Formula | 297.29 | -5 |
Kokopelli Inc. (4167.T) is a Tokyo-based technology company specializing in software solutions tailored for small and medium-sized enterprises (SMEs) in Japan. Operating under its parent company Dimples' Co., Ltd., Kokopelli provides a suite of innovative platforms including Big Advance for management solutions, Bank Assist Portal for regional financial institutions, FLOW for information sharing, and FAI, an AI-driven module. Additionally, the company offers IT support and subsidy utilization consulting services, positioning itself as a critical enabler for SME digital transformation. With a market capitalization of approximately ¥3.71 billion, Kokopelli serves a niche but growing segment in Japan's technology sector, leveraging its expertise in localized SaaS solutions. The company’s focus on regional financial institutions and SMEs underscores its strategic alignment with Japan’s push for digital adoption in traditionally underserved business segments.
Kokopelli Inc. presents a high-risk, high-reward investment opportunity, evidenced by its beta of 1.659, indicating significant volatility relative to the market. The company’s revenue of ¥1.82 billion and net income of ¥33.35 million reflect modest profitability, though its diluted EPS of ¥4.26 suggests room for growth. With no dividends distributed, the investment case hinges on capital appreciation driven by Japan’s SME digitalization trends. Key risks include reliance on a niche market, competitive pressures, and execution challenges in scaling its AI and financial platform offerings. The strong cash position (¥1.31 billion) and manageable debt (¥198 million) provide financial flexibility, but investors should monitor operating cash flow (¥140.71 million) and capital expenditures (¥-161.43 million) for sustainability.
Kokopelli Inc. competes in Japan’s fragmented SME-focused software market, differentiating itself through localized solutions like Bank Assist Portal and FLOW. Its subsidiary status under Dimples' Co., Ltd. may provide strategic advantages in resource allocation and cross-selling. However, the company faces intense competition from larger SaaS providers and fintech platforms targeting SMEs. Kokopelli’s AI module (FAI) is a differentiating factor but lacks the scale of global AI-driven enterprise solutions. The company’s focus on regional financial institutions offers a defensible niche, though scalability outside Japan remains untested. Competitive threats include Freee Inc. (4478.T), which dominates SME accounting software, and Money Forward (3994.T), with broader financial management tools. Kokopelli’s challenge lies in expanding its product moat while maintaining profitability in a capital-intensive sector.