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Stock Analysis & ValuationInfocom Corporation (4348.T)

Professional Stock Screener
Previous Close
¥6,050.00
Sector Valuation Confidence Level
High
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Method730.94-88
Graham Formula3284.73-46

Strategic Investment Analysis

Company Overview

Infocom Corporation (4348.T) is a Tokyo-based IT solutions provider specializing in services for medical institutions, corporations, public agencies, and research facilities in Japan. A subsidiary of Teijin Limited, the company offers comprehensive IT solutions, including system planning, operations management, and health IT services tailored for radiology, pharmaceuticals, and other medical fields. Additionally, Infocom provides enterprise service management, ERP solutions like GRANDIT, and emergency communication systems such as Emergency Call. The company also operates Mecha Comic, an e-comic distribution platform. Founded in 1983, Infocom has established itself as a key player in Japan's IT services sector, leveraging its expertise in healthcare and enterprise IT to drive efficiency and innovation. With a market cap of ¥332.27 billion, the company combines stability with niche specialization, making it a notable name in Japan's communication services and publishing industries.

Investment Summary

Infocom Corporation presents a stable investment opportunity with a low beta (0.43), indicating lower volatility relative to the market. The company's revenue of ¥84.45 billion and net income of ¥6.6 billion reflect steady performance, supported by strong cash reserves (¥37.89 billion) and minimal debt (¥30 million). Its diversified IT solutions, particularly in healthcare and enterprise services, provide resilience against sector-specific downturns. However, its niche focus on Japan may limit growth compared to global IT service providers. The dividend payout, though modest, adds to its appeal for income-focused investors. Risks include dependence on the Japanese market and potential competition from larger IT firms expanding into healthcare and enterprise solutions.

Competitive Analysis

Infocom Corporation holds a competitive edge in Japan's IT services market through its specialized healthcare IT solutions and enterprise service management. Its subsidiary status under Teijin Limited provides financial stability and potential synergies in healthcare technology. The company's GRANDIT ERP and Emergency Call systems differentiate it in enterprise and public safety IT niches. However, its domestic focus limits scalability compared to global competitors. While Infocom's low debt and strong cash position afford flexibility, it faces competition from larger IT service providers like NTT Data and Fujitsu, which have broader international reach and resources. The company's expertise in medical IT is a key strength, but it must innovate continuously to maintain its position against tech giants expanding into healthcare digitization. Its publishing segment, including Mecha Comic, adds diversification but operates in a highly competitive digital content market.

Major Competitors

  • NTT Data Corporation (9613.T): NTT Data is a global IT services leader with extensive resources and international reach, overshadowing Infocom's domestic focus. Its strengths include large-scale enterprise solutions and cloud services, but it may lack Infocom's specialized healthcare IT expertise. NTT's size allows for aggressive R&D but can lead to less agility in niche markets.
  • Fujitsu Limited (6702.T): Fujitsu competes directly in IT services and healthcare solutions, with a stronger global presence and diversified hardware offerings. While Fujitsu's scale is an advantage, Infocom's targeted medical IT solutions and lower operational complexity may appeal to specific clients seeking specialized services.
  • FUJISOFT Incorporated (9749.T): FUJISOFT provides similar IT and enterprise solutions but with a broader software development focus. Infocom's healthcare specialization and Teijin's backing give it an edge in medical IT, whereas FUJISOFT's strength lies in manufacturing and logistics systems.
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