| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 515.91 | -1 |
| Intrinsic value (DCF) | 294.40 | -44 |
| Graham-Dodd Method | 100.54 | -81 |
| Graham Formula | 327.05 | -37 |
Computer Institute of Japan, Ltd. (4826.T) is a leading Japanese IT services and software company specializing in system development, digital transformation, and IT consulting. Founded in 1976 and headquartered in Yokohama, the company provides innovative solutions such as SONOBA COMET (a secure paperless meeting system), Ofigo (a contract management platform), and migration services for legacy systems. It also focuses on emerging technologies like IoT, AI, robotics, and big data. Serving diverse industries—including public sector, manufacturing, finance, and telecommunications—the company offers end-to-end IT solutions, from software development to infrastructure maintenance. With a strong domestic presence and a market cap of ¥27.7 billion, Computer Institute of Japan plays a key role in Japan's digitalization efforts, combining decades of expertise with cutting-edge technological advancements.
Computer Institute of Japan presents a mixed investment profile. Strengths include its niche expertise in secure enterprise software (e.g., SONOBA COMET), diversified industry exposure, and a solid cash position (¥9.46 billion). However, risks include a high beta (1.38), indicating volatility, and modest net income margins (~3.7%). The company’s focus on digital transformation aligns with Japan’s corporate IT spending trends, but competition from larger global and domestic IT firms could pressure growth. The dividend yield (~1.3% based on a ¥18/share payout) is modest. Investors should weigh its technological specialization against its limited international footprint and reliance on the Japanese market.
Computer Institute of Japan (CIJ) operates in a competitive domestic IT services market, where differentiation hinges on technological specialization and client relationships. Its competitive advantage lies in proprietary products like SONOBA COMET and Ofigo, which address niche needs in paperless workflows and contract management. However, CIJ faces intense competition from larger Japanese IT firms (e.g., NTT Data, Fujitsu) with greater scale and global reach. While CIJ’s focus on AI and IoT aligns with industry trends, its smaller size limits R&D budgets compared to multinational peers. The company’s strength in mid-market and public-sector projects provides stability but may cap high-growth opportunities. Its low debt (¥520M) and strong cash reserves offer flexibility, but revenue growth (¥25.7B FY) lags behind sector leaders. CIJ’s regional focus is both a strength (deep local expertise) and a weakness (limited diversification). To sustain competitiveness, CIJ must accelerate innovation in high-margin areas like AI-driven solutions while expanding partnerships.