| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1288.87 | -22 |
| Intrinsic value (DCF) | 3249.67 | 96 |
| Graham-Dodd Method | 966.31 | -42 |
| Graham Formula | 1648.61 | 0 |
SERAKU Co., Ltd. (6199.T) is a Tokyo-based IT services company specializing in system integration, digital transformation, and mechanical design engineering. Founded in 1987, SERAKU operates across multiple high-growth segments, including IT infrastructure, cloud technologies, cybersecurity, AI-driven data science, and robotic process automation (RPA). The company also provides 3D CAD design services for industrial applications and offers staffing solutions for IT engineers. SERAKU’s Midori Cloud agricultural remote monitoring system highlights its diversification into agri-tech. With a market cap of ¥21.7 billion (as of latest data), SERAKU serves a broad clientele in Japan’s technology and manufacturing sectors. Its hybrid business model—combining IT consulting, engineering, and staffing—positions it as a versatile player in Japan’s digital transformation wave. Investors eyeing exposure to Japan’s IT services sector, particularly in niche areas like agri-tech IoT and industrial CAD, may find SERAKU a compelling candidate.
SERAKU Co., Ltd. presents a mixed investment profile. On the positive side, the company operates in high-growth IT segments (cloud, AI, cybersecurity) and maintains a debt-light balance sheet (total debt: ¥84.9 million vs. cash: ¥6.9 billion). Its diversified revenue streams—from system integration to agri-tech—reduce sector concentration risk. However, the stock’s beta of 1.29 suggests higher volatility than the market, and the dividend yield (~0.3% based on a ¥13/share payout) is modest. Revenue growth potential hinges on Japan’s corporate DX (digital transformation) adoption, which faces macroeconomic headwinds. The ¥1.58 billion net income (FY2024) reflects profitability, but investors should monitor capex efficiency (¥199 million in FY2024) as SERAKU scales its IoT/AI offerings. A speculative buy for growth-oriented investors, but limited appeal for income seekers.
SERAKU competes in Japan’s fragmented IT services market by blending niche expertise (e.g., agri-tech IoT, industrial CAD) with broader system integration capabilities. Its competitive edge lies in vertical specialization—unlike generalist IT firms, SERAKU’s Midori Cloud and 3D CAD services cater to specific industries (agriculture, manufacturing). However, it lacks the global scale of tier-1 IT consultancies and relies heavily on domestic demand. The company’s cybersecurity and AI/RPA services face stiff competition from larger players like NTT Data (9613.T), which boast deeper R&D budgets. SERAKU’s staffing division differentiates it from pure-play IT firms, offering cross-selling opportunities but also exposing it to labor market fluctuations. Financially, SERAKU’s lean debt structure (debt-to-equity ~0.01x) provides flexibility, but its ¥22.2 billion revenue is dwarfed by industry leaders. To sustain growth, SERAKU must expand its higher-margin digital services (currently ~30% of revenue) while defending its CAD/engineering niche against automation tools. Partnerships with cloud providers (AWS, Azure) could enhance its scalability.