| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1554.58 | -24 |
| Intrinsic value (DCF) | 48845.65 | 2285 |
| Graham-Dodd Method | 363.48 | -82 |
| Graham Formula | 3660.45 | 79 |
baudroie,inc. (TSE: 4413) is a Tokyo-based IT solutions provider specializing in consulting, design, construction, and managed services for IT infrastructure. Founded in 2007, the company delivers expertise in network virtualization, cloud services, IT security, and wireless solutions, catering to businesses seeking optimized IT performance. Additionally, baudroie offers outsourcing services, including network and server integration, ensuring seamless IT operations for clients. Operating in Japan's competitive IT services sector, the company plays a crucial role in digital transformation, leveraging its technical proficiency to support enterprises in an increasingly cloud-driven and security-conscious market. With a market capitalization of approximately ¥97.5 billion, baudroie is positioned as a key player in Japan's technology services landscape, focusing on scalable and secure IT infrastructure solutions.
baudroie,inc. presents a compelling investment case with its strong revenue growth (¥11.6 billion in FY2025) and solid profitability (net income of ¥1.8 billion). The company's diluted EPS of ¥112.55 and healthy operating cash flow (¥1.9 billion) underscore its financial stability. However, its beta of 1.296 indicates higher volatility compared to the broader market, which may deter risk-averse investors. The dividend yield, with a payout of ¥15.16 per share, adds income appeal. While the IT services sector in Japan is competitive, baudroie's focus on cloud and security solutions aligns with growing enterprise demand. Investors should weigh its growth potential against sector competition and macroeconomic risks affecting IT spending.
baudroie,inc. competes in Japan's IT services market by offering end-to-end infrastructure solutions, differentiating itself through specialized expertise in virtualization and security. Its competitive advantage lies in integrated managed services, which reduce client dependency on multiple vendors. However, the company faces stiff competition from larger domestic and global IT service providers with broader portfolios and deeper R&D capabilities. baudroie's regional focus limits its scalability outside Japan, unlike multinational peers. Its relatively small market cap (¥97.5 billion) may also restrict investment in cutting-edge technologies compared to industry giants. That said, its agility and client-centric approach allow it to carve a niche in mid-market IT infrastructure projects. The company's financial health (low debt and strong cash reserves) provides flexibility to invest in high-growth areas like cloud and cybersecurity, critical for sustaining competitiveness.