| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1233.49 | 13 |
| Intrinsic value (DCF) | 6114.48 | 458 |
| Graham-Dodd Method | 823.29 | -25 |
| Graham Formula | 1242.12 | 13 |
Rococo Co. Ltd. (5868.T) is a Japan-based IT consulting and services company specializing in IT outsourcing, digital transformation (DX) support, and business process outsourcing (BPO). Founded in 1994 and headquartered in Osaka, the company provides a comprehensive suite of IT solutions, including PC lifecycle management, helpdesk services, infrastructure configuration, and system development. Rococo also offers innovative proprietary software such as AUTH thru (a facial recognition access control system), RocoTime (attendance management), and tike-series (ticketing system). With a market cap of ¥3.39 billion, Rococo serves businesses seeking efficient IT management and digitalization solutions in Japan's competitive technology services sector. The company’s diversified service portfolio and niche software products position it as a key player in Japan’s IT consulting landscape.
Rococo Co. Ltd. presents a mixed investment profile. The company operates in Japan’s growing IT services market, supported by its diversified offerings and proprietary software solutions. With a revenue of ¥7.8 billion and net income of ¥278 million, it maintains profitability, though its beta of -0.10 suggests low correlation with broader market movements, potentially offering defensive characteristics. However, its modest market cap and limited international presence may constrain scalability compared to larger peers. The dividend yield is minimal (¥10 per share), reflecting a focus on reinvestment. Investors should weigh Rococo’s niche expertise against competitive pressures and its reliance on the domestic market.
Rococo Co. Ltd. competes in Japan’s fragmented IT services sector by combining traditional outsourcing (e.g., helpdesk, infrastructure support) with proprietary software solutions like facial recognition and attendance systems. Its competitive advantage lies in localized, integrated services tailored to Japanese SMEs, differentiating it from global giants that may lack granular market expertise. However, Rococo’s scale is limited compared to domestic leaders like TIS Inc. or NTT Data, which benefit from broader resources and global reach. The company’s focus on niche software (e.g., AUTH thru) provides sticky revenue streams but faces competition from specialized SaaS providers. While its negative beta suggests resilience to market downturns, Rococo’s growth depends on capturing DX demand in Japan, where larger firms dominate enterprise contracts. Capitalizing on hybrid IT-human resource services could strengthen its positioning against pure-play outsourcing rivals.