| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1116.41 | -9 |
| Intrinsic value (DCF) | 2378.98 | 95 |
| Graham-Dodd Method | 441.45 | -64 |
| Graham Formula | 1414.75 | 16 |
TDC SOFT Inc. is a leading Japanese IT consulting and software infrastructure company headquartered in Tokyo. Founded in 1962, the company specializes in Agile methodologies, UX design, AI consulting, and system integration services. TDC SOFT offers a suite of cloud-based solutions, including Stlyeflow for web application forms, Meepa for EDI cloud systems, and HuTaCT for HR talent management. The company serves businesses seeking digital transformation, operational efficiency, and secure IT infrastructure. Operating in Japan's competitive technology sector, TDC SOFT leverages its deep industry expertise and proprietary frameworks like Trustpro to deliver scalable solutions. With a market cap of ¥61.7 billion, the company continues to innovate in cloud applications and enterprise digitalization, positioning itself as a key player in Japan's growing IT services market.
TDC SOFT presents a stable investment opportunity in Japan's IT services sector, supported by consistent revenue (¥39.7 billion) and net income (¥3.1 billion). The company's low beta (0.604) suggests lower volatility compared to the broader market, appealing to risk-averse investors. A dividend yield of ~1.7% (¥27/share) adds income appeal. However, growth may be constrained by its domestic focus and moderate operating cash flow (¥3.0 billion). The ¥13.4 billion cash reserve provides liquidity, but investors should monitor Japan's competitive IT consulting landscape and the company's ability to expand beyond traditional system integration services.
TDC SOFT competes in Japan's fragmented IT consulting market by combining specialized Agile/UX expertise with proprietary cloud products. Its competitive edge lies in integrated offerings like BP-LINKS for paperless transactions and HANDyTRUSt for workflow automation – solutions that bridge consulting with tangible software tools. However, the company lacks the global scale of multinational IT service providers. Its ¥61.7 billion market cap is modest compared to industry leaders, suggesting niche positioning. TDC SOFT's focus on framework-based solutions (Trustpro) creates implementation efficiency but may limit customization appeal versus boutique firms. The balance between consulting services (lower-margin) and owned SaaS products (higher-margin) will be crucial for future differentiation. With only ¥453 million in debt, the company has financial flexibility to acquire complementary technologies or expand its cloud portfolio.