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Stock Analysis & ValuationIID, Inc. (6038.T)

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¥962.00
Sector Valuation Confidence Level
High
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1353.7541
Intrinsic value (DCF)787.09-18
Graham-Dodd Method968.541
Graham Formula473.33-51

Strategic Investment Analysis

Company Overview

IID, Inc. (6038.T) is a Japan-based company specializing in digital media, research, and e-commerce solutions. Operating under the Communication Services sector, IID manages a diverse portfolio of media websites covering business, technology, entertainment, fashion, and more, catering to niche and broad audiences alike. The company also provides comprehensive research and consulting services, including quantitative and qualitative analysis, as well as overseas research. Additionally, IID offers shop management ASP systems tailored for e-commerce businesses, enhancing operational efficiency for online retailers. Headquartered in Tokyo and founded in 2000, IID has established itself as a key player in Japan's digital media and advertising landscape. With a market capitalization of approximately ¥4.62 billion, the company continues to leverage its expertise in content creation and digital commerce to drive growth in an increasingly competitive industry.

Investment Summary

IID, Inc. presents a mixed investment profile. On the positive side, the company operates in the growing digital media and e-commerce sectors, with a diversified portfolio of niche websites and research services. Its strong cash position (¥3.61 billion) and low beta (0.336) suggest relative stability compared to broader market volatility. However, the company's modest net income (¥163 million) and diluted EPS (¥33.31) indicate limited profitability, while its revenue (¥6.13 billion) reflects moderate scale in a competitive industry. The dividend yield (based on ¥14 per share) may appeal to income-focused investors, but growth prospects depend on IID's ability to expand its digital footprint and monetize its media assets more effectively. Risks include intense competition in Japan's digital advertising space and reliance on domestic market conditions.

Competitive Analysis

IID, Inc. competes in Japan's crowded digital media and advertising sector, where differentiation is key. The company's strength lies in its diversified content portfolio, spanning business, technology, and entertainment niches, which allows it to capture varied audience segments. Its integrated research and consulting services add value to its media offerings, creating cross-selling opportunities. However, IID faces stiff competition from larger media conglomerates and digital advertising platforms with greater resources and global reach. The company's relatively small scale (¥6.1 billion revenue) limits its bargaining power with advertisers compared to industry giants. Its focus on the Japanese market is both a strength (deep local expertise) and a weakness (limited geographic diversification). The shop management ASP system for e-commerce represents a potential growth area, but adoption faces competition from established SaaS providers. IID's competitive advantage rests on its ability to maintain engaged niche audiences and leverage its research capabilities to deliver targeted advertising solutions.

Major Competitors

  • Rakuten Group, Inc. (4755.T): Rakuten is a Japanese tech giant with dominant positions in e-commerce, digital content, and advertising. Its scale and integrated ecosystem (including Rakuten Ichiba marketplace) give it superior advertiser reach compared to IID. However, Rakuten's broader focus may leave room for IID to compete in niche content areas. Rakuten has struggled with profitability in recent years despite its size.
  • CyberAgent, Inc. (4751.T): CyberAgent operates one of Japan's largest internet advertising networks and owns popular media properties like AbemaTV. Its strong digital advertising technology and larger scale (¥700+ billion revenue) pose significant competition to IID. However, CyberAgent's focus on mass-market entertainment content differs from IID's more specialized media approach.
  • DeNA Co., Ltd. (2432.T): DeNA combines gaming, e-commerce, and media services, competing with IID in digital content and advertising. Its strength lies in mobile platforms and gaming communities, while IID has stronger footing in business and practical content. DeNA's international presence gives it broader reach but also exposes it to more market volatility.
  • mixi, Inc. (2121.T): mixi operates social networking and gaming platforms, including the still-popular Monster Strike game. While its media focus differs from IID's content sites, mixi competes for similar digital advertising budgets. mixi's strength in mobile gaming gives it strong user engagement metrics, but it lacks IID's research services division.
  • Konami Group Corporation (9766.T): Konami is primarily a gaming and entertainment company, but its digital content and advertising operations overlap with parts of IID's business. Konami's strong IP portfolio (e.g., Metal Gear, Yu-Gi-Oh!) gives it content advantages, though it doesn't offer the research and e-commerce solutions that differentiate IID.
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