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Stock Analysis & ValuationComputer Management Co., Ltd. (4491.T)

Professional Stock Screener
Previous Close
¥2,966.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)2745.93-7
Intrinsic value (DCF)1945.89-34
Graham-Dodd Method2135.25-28
Graham Formula3420.8815

Strategic Investment Analysis

Company Overview

Computer Management Co., Ltd. (4491.T) is a Japan-based IT services provider specializing in system support solutions for enterprises across various industries. Founded in 1981 and headquartered in Osaka, the company offers comprehensive services including system development, financial and medical IT solutions, and helpdesk business process outsourcing (BPO). Additionally, it provides infrastructure consulting, design, implementation, and maintenance services. A key strength lies in its ERP solutions, catering to businesses of all sizes—SAP S4 HANA for large enterprises, SAP Business ByDesign for mid-sized firms, and SAP Business One for SMEs. Operating in the competitive Software - Application sector, Computer Management Co. leverages its deep expertise in SAP implementations and IT infrastructure to serve Japanese enterprises. With a market cap of approximately ¥5.05 billion, the company maintains a strong balance sheet, zero debt, and solid cash reserves, positioning it as a stable player in Japan's IT services landscape.

Investment Summary

Computer Management Co. presents a niche investment opportunity in Japan's IT services sector, with a focus on SAP ERP solutions and system infrastructure support. The company's zero-debt balance sheet and ¥2.91 billion in cash equivalents provide financial stability, while its modest beta (0.025) suggests low volatility relative to the market. However, its small market cap and limited international presence may constrain growth potential compared to global peers. Revenue of ¥7.19 billion and net income of ¥327 million reflect steady but unspectacular performance. The dividend yield, based on a ¥50 per share payout, is a positive for income-focused investors, but growth prospects depend heavily on Japan's corporate IT spending trends. Investors should weigh its stable domestic positioning against potential scalability challenges.

Competitive Analysis

Computer Management Co. competes in Japan's fragmented IT services market by specializing in SAP implementations and system infrastructure support—a niche that provides some insulation from broader competition. Its deep expertise in SAP ERP solutions (S4 HANA, Business ByDesign, and Business One) differentiates it from generalist IT service providers. The company's focus on mid-market and enterprise clients in Japan allows for tailored solutions, though this also limits its addressable market. Unlike global IT consultancies, Computer Management Co. lacks significant international exposure, which may hinder growth but reduces exposure to foreign exchange and geopolitical risks. Its zero-debt financial structure and strong cash position (¥2.91 billion) provide flexibility, but its small scale makes it vulnerable to pricing pressure from larger competitors. The company's competitive edge lies in its long-standing relationships with Japanese enterprises and SAP specialization, though it faces stiff competition from both domestic IT firms and global players expanding in Japan.

Major Competitors

  • SCSK Corporation (9719.T): SCSK is a larger Japanese IT services provider with broader capabilities, including cloud solutions and digital transformation services. It competes directly in SAP implementations but has greater resources for large-scale projects. However, its diversified focus may dilute its SAP expertise compared to Computer Management Co.'s niche approach.
  • GungHo Online Entertainment, Inc. (3765.T): Primarily a gaming company, GungHo overlaps marginally in IT services. Its strength lies in entertainment software, posing no direct threat to Computer Management Co.'s core ERP and infrastructure business. However, it represents alternative tech investment exposure in Japan.
  • Nomura Research Institute, Ltd. (4307.T): A major Japanese IT consultancy with strong capabilities in financial systems and AI solutions. NRI's scale and research-driven approach give it an edge in innovation, but Computer Management Co.'s SAP specialization allows it to compete in specific ERP deployments.
  • SAP SE (SAP): As the provider of SAP software, SAP SE is both a partner and competitor. While Computer Management Co. implements SAP solutions, SAP's own consulting arm competes for large enterprise contracts globally. However, in Japan, local expertise gives Computer Management Co. an advantage in regional deployments.
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