| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1322.18 | -18 |
| Intrinsic value (DCF) | 3740.70 | 133 |
| Graham-Dodd Method | 650.73 | -60 |
| Graham Formula | 842.07 | -48 |
AI CROSS Inc. (4476.T) is a Tokyo-based technology company specializing in business communication platforms and AI-driven analytics services. Operating in Japan's competitive software application sector, the company develops and manages messaging services like Zettai-Reach SMS, a business-oriented SMS solution, and HYOUMAN BOX, an HR management service. Founded in 2015, AI CROSS leverages AI to enhance enterprise communication and workforce efficiency. With a market capitalization of approximately ¥6.68 billion, the company serves businesses seeking streamlined digital communication tools. Its focus on AI integration positions it as a niche player in Japan's growing HR tech and business analytics markets. AI CROSS's revenue of ¥3.71 billion (FY 2024) reflects its steady growth in a sector dominated by larger global players.
AI CROSS presents a specialized investment opportunity in Japan's business communication and HR tech segments. The company's modest market cap (¥6.68B) and beta (0.87) suggest lower volatility relative to the broader tech sector. While revenue (¥3.71B) shows stability, net income (¥148M) and diluted EPS (¥38.55) indicate thin margins, typical for growth-stage SaaS firms. The absence of debt (¥2.69M) and substantial cash reserves (¥1.56B) provide financial flexibility, but zero dividends and minimal capex may concern income-focused investors. Competitive pressures from larger HR/communication platforms and reliance on the domestic market are key risks. The stock may appeal to investors bullish on Japan's digital transformation but requires monitoring of customer acquisition costs and AI service adoption rates.
AI CROSS competes in Japan's fragmented business communication software market by focusing on AI-enhanced niche products. Its Zettai-Reach SMS differentiates through enterprise-grade SMS reliability, but faces indirect competition from omnichannel platforms like LINE Works. The HYOUMAN BOX HR tool competes with domestic HR SaaS providers but lacks the scale of global HCM suites. The company's primary advantage is deep localization—Japanese-language support and compliance with domestic data regulations—which multinational rivals often underemphasize. However, its AI Analytics services confront established players like Salesforce and local AI startups. With ¥1.56B cash, AI CROSS could pursue acquisitions to expand functionality, but its small salesforce (implied by ¥3.7B revenue) limits enterprise reach. The lack of disclosed international revenue suggests vulnerability if domestic growth slows. Success hinges on upselling AI features to existing SMS/HR clients while defending against vertically integrated competitors.