| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1706.22 | -38 |
| Intrinsic value (DCF) | 32352.47 | 1083 |
| Graham-Dodd Method | 775.58 | -72 |
| Graham Formula | 3299.08 | 21 |
Smaregi, Inc. is a leading Japanese software company specializing in cloud-based point-of-sale (POS) and business management solutions. Headquartered in Osaka, the company provides innovative web services, including its flagship product, Smaregi, a cloud-based POS system designed for retail and hospitality businesses. Additionally, Smaregi offers complementary solutions like Smaregi Waiter for order management and Smaregi - Time Card for attendance and payroll management. The company's integrated platform enables businesses to streamline operations, enhance efficiency, and leverage data analytics for better decision-making. Operating in the competitive Software - Infrastructure sector, Smaregi has carved a niche in Japan's growing cloud services market, catering to small and medium-sized enterprises (SMEs). With a strong focus on scalability and user-friendly interfaces, Smaregi continues to expand its footprint in Japan's digital transformation landscape.
Smaregi presents an attractive investment opportunity due to its strong position in Japan's cloud-based POS and business management market. The company boasts a debt-free balance sheet, solid cash reserves (JPY 5.28 billion), and consistent profitability (net income of JPY 1.21 billion in FY 2024). Its revenue growth and operating cash flow (JPY 1.71 billion) reflect healthy demand for its SaaS solutions. However, investors should consider the competitive nature of the cloud software industry and potential margin pressures from increasing R&D and marketing expenses. The company's beta of 0.878 suggests moderate volatility relative to the market. A dividend yield of approximately 1.5% (based on a JPY 30 per share dividend) adds income appeal, though growth investors may prefer higher reinvestment rates.
Smaregi competes in Japan's cloud POS and business management software market, where differentiation is driven by product features, integration capabilities, and customer support. The company's competitive advantage lies in its localized solutions tailored for Japanese SMEs, with strong compliance features for Japan's regulatory environment. Its all-in-one platform combining POS, inventory, and HR functions creates switching costs for customers. However, Smaregi faces competition from both domestic players offering similar niche solutions and global giants expanding in Japan. The company's pure cloud approach gives it an edge over legacy on-premise providers but requires continuous innovation to match larger competitors' R&D budgets. Its zero-debt position provides financial flexibility for strategic investments. Key challenges include expanding beyond its current SME focus to larger enterprises and potential international expansion, where it currently lacks presence compared to global competitors.