| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 329.92 | -18 |
| Intrinsic value (DCF) | 2750.78 | 581 |
| Graham-Dodd Method | 143.98 | -64 |
| Graham Formula | 180.06 | -55 |
SecondXight Analytica, Inc. (5028.T) is a Tokyo-based analytics and AI solutions provider specializing in machine learning and deep learning applications. Founded in 2016, the company offers data-driven consulting services and proprietary AI platforms, including R2Engine for large-scale data processing, an analytics platform for centralized data management, and SkyFoxHR for AI-powered HR analytics. Operating in Japan's competitive software-as-a-service (SaaS) and AI consulting market, SecondXight Analytica serves businesses seeking advanced data analytics solutions to optimize decision-making. With a market capitalization of approximately ¥2.68 billion, the company combines consulting expertise with scalable AI products, positioning itself at the intersection of Japan's growing enterprise AI adoption and digital transformation trends. Its offerings cater to industries requiring predictive analytics, automation, and data infrastructure modernization.
SecondXight Analytica presents a high-risk, high-reward opportunity within Japan's niche AI analytics sector. The company's ¥114 million revenue and ¥116 million net income (FY 2024) reflect profitability, supported by positive operating cash flow (¥155 million). However, its high beta (1.368) indicates volatility, likely tied to its small-cap status and dependence on Japan's enterprise AI adoption pace. The lack of dividends suggests reinvestment in product development, while minimal debt (¥30 million) and ¥514 million cash reserves provide stability. Investors should weigh its first-mover advantage in specialized AI consulting against competition from larger SaaS providers and global AI platforms expanding into Japan.
SecondXight Analytica competes by blending consulting services with proprietary AI tools—a hybrid model differentiating it from pure-play SaaS vendors. Its R2Engine platform's focus on Japanese-language data processing gives it localization advantages against global competitors. However, scalability is constrained by its consulting-heavy approach. The company's SkyFoxHR targets Japan's unique HR analytics needs, a niche underserved by multinational HR tech platforms. While its ¥2.68 billion market cap limits R&D firepower versus giants like NTT Data, SecondXight's vertical integration (from data infrastructure to end-user AI applications) allows customized solutions. Key challenges include client acquisition costs in Japan's conservative corporate sector and competition from cloud hyperscalers embedding AI tools. Its 2024 profitability suggests successful monetization, but growth depends on expanding beyond project-based consulting to recurring SaaS revenue.