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Stock Analysis & ValuationFullcast Holdings Co., Ltd. (4848.T)

Professional Stock Screener
Previous Close
¥1,683.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)2453.2546
Intrinsic value (DCF)1034.68-39
Graham-Dodd Method507.11-70
Graham Formula1178.77-30

Strategic Investment Analysis

Company Overview

Fullcast Holdings Co., Ltd. (4848.T) is a leading Japanese human resource solutions provider specializing in short-term operational support, sales support, and security services. Headquartered in Tokyo, the company offers a diverse range of staffing solutions, including event operation personnel, payroll management, security services for public facilities, and call center operations. Fullcast serves industries such as distribution, retail, warehousing, and telecommunications, catering to both domestic and foreign nationals. With a strong presence in the Tokyo metropolitan area, the company also provides specialized services like senior workforce staffing and driver recruitment. Additionally, Fullcast offers back-office support, including data entry, accounting, and payment management. Founded in 1990, Fullcast has established itself as a key player in Japan's staffing and employment services sector, leveraging its extensive industry expertise to meet evolving labor market demands. The company’s diversified service portfolio and regional focus position it well in Japan’s competitive HR solutions market.

Investment Summary

Fullcast Holdings presents a stable investment opportunity within Japan’s staffing industry, supported by consistent revenue growth and a strong cash position (JPY 17.5 billion). The company’s low beta (0.587) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, its reliance on Japan’s domestic labor market exposes it to demographic challenges, including an aging workforce. The company’s net income (JPY 5.49 billion) and operating cash flow (JPY 5.76 billion) indicate profitability, but competition from larger staffing firms could pressure margins. The dividend yield (JPY 62 per share) adds income appeal, though investors should monitor labor demand fluctuations and regulatory changes in Japan’s employment sector.

Competitive Analysis

Fullcast Holdings operates in Japan’s highly fragmented staffing industry, competing with both large diversified firms and niche players. Its competitive advantage lies in its specialized service offerings, including security and senior workforce staffing, which differentiate it from generalist staffing providers. The company’s regional focus in Tokyo allows for deep client relationships but limits geographic diversification. Fullcast’s ability to provide short-term and event-based staffing solutions gives it flexibility in responding to labor demand spikes. However, its smaller scale compared to global staffing giants may restrict pricing power and technological investments in HR automation. The company’s security segment provides stable recurring revenue, but growth depends on Japan’s economic activity and corporate outsourcing trends. While Fullcast’s profitability metrics are solid, it faces intensifying competition from digital staffing platforms and larger rivals with broader service networks.

Major Competitors

  • Persol Holdings Co., Ltd. (2181.T): Persol is Japan’s largest staffing firm, offering comprehensive HR solutions across temporary and permanent placements. Its scale and technological investments in recruitment platforms give it an edge over Fullcast, but it lacks Fullcast’s niche focus on security and senior staffing. Persol’s international presence diversifies its revenue streams, unlike Fullcast’s domestic concentration.
  • Recruit Holdings Co., Ltd. (9735.T): Recruit dominates Japan’s HR services market with its global brands (Indeed, Glassdoor) and digital-first approach. Its vast resources and data-driven recruitment tools outpace Fullcast’s traditional staffing model. However, Recruit’s broad focus may leave room for Fullcast in specialized segments like security and event staffing.
  • Value HR Co., Ltd. (6078.T): Value HR specializes in healthcare and nursing staffing, overlapping with Fullcast’s senior workforce services. Its healthcare expertise is a strength, but Fullcast’s broader service range (e.g., security, sales support) provides diversification. Value HR’s smaller size limits its competitive threat.
  • TDSE Inc. (7046.T): TDSE focuses on IT and engineering staffing, a high-growth segment where Fullcast has limited presence. Its technical recruitment expertise differentiates it, but Fullcast’s operational support services cater to a wider client base, including non-tech industries.
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