| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 9571.70 | 45 |
| Intrinsic value (DCF) | 4268.47 | -35 |
| Graham-Dodd Method | 1284.88 | -81 |
| Graham Formula | 10974.78 | 66 |
GMO TECH, Inc. (6026.T) is a Tokyo-based digital marketing and internet advertising company specializing in search engine optimization (SEO), affiliate marketing, and performance-based advertising solutions. As a subsidiary of GMO Internet, Inc., the company operates in Japan and internationally, offering a suite of services including DeepCrawl (a technical SEO tool), job advertisements, and demand-side platform (DSP) services. GMO TECH serves businesses looking to enhance their online visibility and digital marketing efficiency through data-driven strategies. The company’s expertise in SEO and affiliate marketing positions it as a key player in Japan’s competitive internet advertising sector, which is part of the broader Communication Services industry. With a market cap of ¥7.9 billion (as of latest data), GMO TECH leverages its technological capabilities and parent company’s infrastructure to deliver scalable digital marketing solutions.
GMO TECH presents a niche investment opportunity in Japan’s digital advertising market, with steady revenue (¥6.87 billion) and net income (¥669 million) in its latest fiscal year. The company benefits from its affiliation with GMO Internet, Inc., providing stability and cross-platform synergies. However, its small market cap and low beta (0.143) suggest limited volatility but also lower liquidity. The dividend yield (¥307.09 per share) may appeal to income-focused investors, though growth prospects depend on Japan’s digital ad spend trends and competition from larger global players. Risks include reliance on domestic markets and potential margin pressures from rising ad-tech costs.
GMO TECH operates in a highly competitive digital advertising landscape dominated by global giants and regional specialists. Its competitive advantage lies in its localized SEO and affiliate marketing expertise, particularly in Japan, where it benefits from GMO Internet’s ecosystem. The company’s DeepCrawl tool differentiates it in technical SEO, a growing segment as businesses prioritize organic search performance. However, GMO TECH lacks the scale of multinational DSP providers like Google and Criteo, limiting its reach in programmatic advertising. Its affiliate network (GMO SmaAFFi) is a strength but faces competition from Rakuten’s affiliate programs and other local players. The company’s profitability (net margin ~9.7%) is respectable but could be pressured by larger competitors with more advanced AI-driven ad-tech capabilities. GMO TECH’s partnership model and SME focus provide resilience, but scalability outside Japan remains a challenge.