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Stock Analysis & ValuationFusic Co., Ltd. (5256.T)

Professional Stock Screener
Previous Close
¥2,323.00
Sector Valuation Confidence Level
Low
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1283.38-45
Intrinsic value (DCF)9124.21293
Graham-Dodd Method1652.49-29
Graham Formula2488.717

Strategic Investment Analysis

Company Overview

Fusic Co., Ltd. (5256.T) is a Japan-based technology company specializing in software development, AI, machine learning, and IoT system solutions. Headquartered in Fukuoka City, Fusic provides comprehensive IT services, including web and mobile application development, cloud infrastructure, and consulting for business strategy and digital transformation. The company's innovative product portfolio includes 360 Sanrokumaru, a personnel evaluation tool; sigfy, a contact network service for educational institutions; mockmock, an IoT development support platform; and Yagula, a domain and SSL certificate monitoring tool. Founded in 2002, Fusic operates in Japan's competitive software-as-a-service (SaaS) and IT consulting market, leveraging AI and IoT expertise to serve businesses seeking digital optimization. With a market cap of ¥2.63 billion, Fusic is positioned as a niche player in Japan's growing tech sector, focusing on customized IT solutions for SMEs and enterprises.

Investment Summary

Fusic Co., Ltd. presents a specialized investment opportunity in Japan's IT services sector, with a focus on AI, IoT, and SaaS solutions. The company's ¥1.8 billion revenue and ¥155 million net income (FY 2024) reflect steady performance, though its modest market cap suggests limited scale compared to larger peers. Strengths include a diversified service portfolio and strong regional presence in Fukuoka, a growing tech hub. However, risks include reliance on the domestic market, competition from larger IT firms, and low dividend yield (currently 0). The beta of 0.763 indicates lower volatility than the broader market, potentially appealing to risk-averse investors. Investors should weigh Fusic's niche expertise against its smaller scale and growth constraints in a crowded industry.

Competitive Analysis

Fusic Co., Ltd. competes in Japan's fragmented IT services and SaaS market, differentiating itself through specialized AI/IoT development and localized consulting. Its competitive advantage lies in tailored solutions for SMEs and educational institutions, as seen in products like sigfy and 360 Sanrokumaru. However, the company faces intense competition from larger domestic IT firms with broader resources and global reach. Fusic's regional focus (Fukuoka) provides local market insights but limits national scalability. The lack of significant debt (¥43.3 million) and healthy cash reserves (¥776.4 million) offer financial flexibility, though R&D spending may lag behind deep-pocketed rivals. Its IoT and AI capabilities are a strength but require continuous innovation to stay ahead of tech trends. The company's B2B model creates recurring revenue potential, but client concentration risk persists. Fusic's challenge is to expand beyond regional niches while competing with vertically integrated tech giants.

Major Competitors

  • SCSK Corporation (9719.T): SCSK is a major Japanese IT services provider with stronger financials (market cap ~¥400 billion) and enterprise clientele. It outperforms Fusic in scale and infrastructure services but lacks Fusic's niche IoT/AI focus. SCSK's weakness is slower innovation in specialized SaaS products.
  • Nomura Research Institute, Ltd. (4307.T): NRI dominates Japan's IT consulting space with global reach and advanced analytics capabilities. It competes with Fusic in AI solutions but targets larger corporations. NRI's strength is its research-driven approach, though it may overlook SME-focused services where Fusic operates.
  • NS Solutions Corporation (2327.T): NS Solutions offers similar IT system integration services but with stronger financial backing (part of Nippon Steel group). It rivals Fusic in cloud and IoT projects but is less agile in niche educational and HR tech applications.
  • GMO Internet, Inc. (3903.T): GMO provides broader internet services, including cloud and payment solutions. It competes indirectly with Fusic in web infrastructure but lacks Fusic's dedicated AI/IoT development focus. GMO's strength is its diversified portfolio, while its weakness is less customized B2B service.
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