| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 15250.31 | 46 |
| Intrinsic value (DCF) | 9721.50 | -7 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 7389.92 | -29 |
Oracle Corporation Japan (4716.T) is a leading provider of software, hardware, and cloud solutions in Japan, operating as a subsidiary of Oracle Japan Holding Inc. The company specializes in relational database management systems, middleware, and enterprise applications, alongside hardware systems like servers and storage devices. Oracle Japan serves diverse industries, including automotive, financial services, healthcare, and retail, offering cloud infrastructure, enterprise resource planning (ERP), and customer experience solutions. With a strong foothold in Japan since 1985, the company leverages Oracle's global technology ecosystem while tailoring solutions to local market needs. Its revenue streams include cloud and license services, hardware sales, and consulting support, positioning it as a key player in Japan's enterprise IT landscape. The company's focus on hybrid and multi-cloud environments aligns with growing digital transformation trends in the region.
Oracle Corporation Japan presents a stable investment opportunity with its entrenched position in Japan's enterprise software market and backing from Oracle’s global brand. The company’s diversified revenue streams—spanning cloud services, licenses, and hardware—provide resilience, while its net income of ¥55.6 billion and operating cash flow of ¥80.3 billion reflect solid profitability. A dividend yield of ~3.1% (based on a ¥674/share dividend) adds appeal for income-focused investors. However, reliance on legacy hardware sales and competition from agile cloud-native rivals like AWS and Microsoft Azure pose risks. The stock’s low beta (0.245) suggests lower volatility but may limit upside in high-growth tech rallies. Investors should monitor cloud adoption rates and local competition in Japan’s evolving IT landscape.
Oracle Corporation Japan benefits from Oracle’s global dominance in database software (e.g., Oracle Database, MySQL) and ERP solutions, which are deeply embedded in Japanese enterprises. Its hybrid cloud approach caters to local preferences for on-premises and cloud integration, differentiating it from pure-play cloud providers. However, the company faces intense competition in cloud infrastructure, where it lacks the scale of AWS or Azure. Its hardware segment, though profitable, is exposed to declining demand as enterprises shift to cloud-native architectures. Strengths include strong client relationships in regulated industries (e.g., finance, healthcare) and Oracle’s integrated stack (database-to-application). Weaknesses include slower innovation cycles compared to SaaS-focused rivals and dependency on Oracle’s global R&D. The lack of debt (¥0 total debt) provides flexibility, but capex (¥-501 million) appears low, potentially limiting cloud infrastructure expansion.