| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 2609.73 | -11 |
| Graham Formula | 2534.01 | -14 |
SB Technology Corp. (4726.T) is a leading Japanese ICT services provider specializing in data analysis, IT infrastructure, cloud solutions, and e-commerce development. Headquartered in Tokyo, the company delivers comprehensive IT system planning, design, and operation services, including mobile and IoT applications. Formerly known as SoftBank Technology Corp., it rebranded in 2019 to reflect its broader technological focus. With a strong presence in Japan's IT services sector, SB Technology Corp. leverages its expertise in security solutions and digital transformation to serve businesses seeking scalable and innovative ICT solutions. The company's diversified service portfolio positions it as a key player in Japan's rapidly evolving technology landscape, catering to enterprises looking to enhance operational efficiency through cutting-edge IT infrastructure and cloud-based services.
SB Technology Corp. presents a stable investment opportunity with moderate growth potential in Japan's competitive ICT services market. The company boasts a solid financial position, with JPY 65.7 billion in revenue and JPY 8.36 billion in net income for FY 2024. Its low beta (0.442) suggests lower volatility compared to the broader market, making it a relatively defensive play in the technology sector. However, investors should note the company's modest operating cash flow (JPY 2.26 billion) and significant capital expenditures (JPY -1.48 billion), which may limit short-term liquidity. The firm's strong cash reserves (JPY 10.77 billion) and minimal debt (JPY 480 million) provide financial flexibility, but growth may be constrained by Japan's mature IT services market and intense competition from larger global players.
SB Technology Corp. operates in Japan's highly competitive IT services sector, where differentiation is key. The company's competitive advantage lies in its specialized offerings in data visualization, IoT applications, and e-commerce solutions—areas experiencing strong demand in Japan's digital transformation wave. Its historical association with SoftBank provides brand recognition, though it now operates independently. The firm's mid-market positioning allows it to serve SMEs and enterprises seeking cost-effective, localized IT solutions compared to global giants. However, SB Technology faces challenges in scaling beyond Japan, where it competes with domestic players like NTT Data and global cloud providers expanding in the region. Its relatively small market cap (JPY 58.9 billion) limits R&D spending compared to larger rivals, potentially hindering innovation in emerging technologies like AI and edge computing. The company's strength in security solutions and system integration provides steady revenue streams, but it must continue investing in cloud and automation capabilities to remain competitive against hyperscalers and niche SaaS providers.