| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 26.28 | -99 |
| Graham Formula | 22.84 | -99 |
SoldOut, Inc. is a Tokyo-based digital marketing support company specializing in services for small and medium-sized enterprises (SMEs) in Japan. Operating under Hakuhodo DY Holdings Inc., SoldOut provides a comprehensive suite of digital marketing solutions, including promotion tools, internet advertisement operations, corporate branding, e-commerce support, and human resource development. The company's flagship platform, ZIP, serves as a social advertising platform, while its IT tools streamline digital marketing tasks. Founded in 2009, SoldOut has carved a niche in Japan's competitive digital marketing landscape by focusing on SMEs and venture companies. With a revenue of ¥22.3 billion in FY2021, the company plays a vital role in Japan's technology-driven marketing sector, offering specialized recruitment and training services to bridge the digital skills gap. Its subsidiary status under Hakuhodo DY Holdings provides strategic advantages in resources and industry reach.
SoldOut, Inc. presents a mixed investment profile. The company operates in Japan's growing digital marketing sector, benefiting from the increasing demand for SME-focused digital services. However, its modest net income of ¥145 million and diluted EPS of ¥1.35 in FY2021 indicate thin profitability margins. The company maintains a solid cash position (¥2.6 billion) and manageable debt (¥1.04 billion), but negative capital expenditures (-¥739.6 million) suggest limited reinvestment. A beta of 0.89 implies lower volatility than the market, which may appeal to risk-averse investors. The dividend yield (¥36.28 per share) could attract income-focused investors, but growth prospects may be constrained by its niche focus and subsidiary structure under Hakuhodo DY Holdings. Investors should weigh its stable cash flow (¥608.6 million operating cash flow) against sector competition and Japan's macroeconomic conditions.
SoldOut, Inc. competes in Japan's crowded digital marketing and IT services sector, differentiating itself through SME-focused solutions and integrated human resource development services. Its competitive advantage lies in its specialized support for venture companies and its proprietary ZIP social advertising platform. As a subsidiary of Hakuhodo DY Holdings, SoldOut benefits from parent company resources and industry connections, enhancing its credibility and client reach. However, its niche focus on SMEs limits scalability compared to broader-service competitors. The company's dual role as a service provider and talent developer creates a unique value proposition but also spreads resources thin. Its financials suggest efficient operations but modest profitability, indicating potential vulnerability to larger competitors with deeper pockets. The negative capital expenditures raise questions about long-term innovation capacity. SoldOut's positioning as an SME specialist shields it from direct competition with global giants but exposes it to local competitors with similar offerings. Its success hinges on maintaining service quality and leveraging Hakuhodo's network while navigating Japan's competitive digital marketing landscape.