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Stock Analysis & ValuationBengo4.com,Inc. (6027.T)

Professional Stock Screener
Previous Close
¥2,902.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)2221.61-23
Intrinsic value (DCF)8543.58194
Graham-Dodd Method436.35-85
Graham Formula1460.41-50

Strategic Investment Analysis

Company Overview

Bengo4.com, Inc. is a leading Japanese internet media and IT solutions company specializing in legal and tax consultation services. Operating primarily through its flagship portal sites, Bendo4.com (legal consultation) and zeiri4.com (tax consultation), the company connects users with professional advisors, leveraging Japan's growing demand for digital legal and financial services. Additionally, its IT/Solutions segment offers CloudSign, a cloud-based online contract service, catering to businesses transitioning to digital workflows. Headquartered in Tokyo and founded in 2005, Bengo4.com has established itself as a key player in Japan's online consultation market, benefiting from regulatory shifts and increasing digitization in professional services. With a market cap of ¥67.7 billion, the company operates at the intersection of technology and professional consulting, positioning it for sustained growth in Japan's evolving digital economy.

Investment Summary

Bengo4.com presents a niche investment opportunity in Japan's digital professional services sector, with its dual focus on legal/tax consultation portals and IT solutions. The company's revenue of ¥11.3 billion and net income of ¥837 million reflect steady profitability, supported by strong operating cash flow of ¥1.16 billion. Its negligible beta (0.088) suggests low market correlation, potentially offering defensive characteristics. However, the lack of dividends and moderate debt (¥2.75 billion against ¥3.47 billion cash) may limit appeal to income-focused investors. Growth prospects hinge on Japan's adoption of digital legal/tax services and corporate demand for cloud-based solutions like CloudSign. Risks include competition from traditional consultation firms expanding online and reliance on Japan's domestic market.

Competitive Analysis

Bengo4.com's competitive advantage lies in its first-mover status in Japan's online legal and tax consultation space, with strong brand recognition for Bendo4.com and zeiri4.com. The integration of its Media and IT/Solutions segments creates cross-selling opportunities, such as directing portal users to CloudSign. Its asset-light model allows scalability without significant capital expenditures (only ¥67 million in FY2024). However, the company faces intensifying competition as traditional law/accounting firms digitize services and tech platforms expand into professional consultations. Bengo4.com's niche focus on Japan limits geographic diversification but provides deep local market expertise. The lack of international peers in its exact business model is both a strength (reduced competition) and a weakness (no proven expansion blueprint). Its IT segment differentiates through CloudSign's specialization in legal-tech, but competes with broader e-signature platforms. Maintaining portal traffic and monetization will be critical as competitors improve online offerings.

Major Competitors

  • IBJ Inc. (6071.T): IBJ operates Japan's largest marriage consultation service and has expanded into online legal services. Its stronger financials (market cap ¥142B) and diversified service portfolio pose competition, but lacks Bengo4.com's tax specialization. IBJ's weakness is lesser focus on B2B IT solutions compared to Bengo4.com's CloudSign.
  • Dentsu Soken Inc. (4812.T): A major IT consulting firm with ¥80B revenue, Dentsu Soken competes in corporate IT solutions but lacks Bengo4.com's consumer-facing legal/tax portals. Its strength is enterprise client base, while weakness is no direct legal-tech offerings comparable to CloudSign.
  • GMO Internet, Inc. (3903.T): Provides broad internet services including cloud and fintech solutions. While larger (market cap ¥131B), GMO lacks specialized legal/tax portals. Its strength is diversified tech infrastructure, but weakness is no focused professional consultation platform like Bengo4.com's niche.
  • Kudan Inc. (4425.T): Specializes in AI and IoT solutions, overlapping slightly with Bengo4.com's IT segment. Much smaller (market cap ¥12B), Kudan's strength is advanced tech R&D, but it has no presence in legal/tax consultation markets where Bengo4.com dominates.
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