| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 722.16 | 37 |
| Intrinsic value (DCF) | 7192.64 | 1265 |
| Graham-Dodd Method | 387.38 | -26 |
| Graham Formula | 10.81 | -98 |
Goodpatch, Inc. is a Tokyo-based UI/UX design consulting firm specializing in digital product innovation. Founded in 2011, the company offers comprehensive design solutions including UI/UX design, business model design, brand experience design, organizational design, and software development services. Goodpatch has developed proprietary tools like Strap (an online whiteboard) and Prott (a prototyping tool), enhancing its service offerings. The company also operates ReDesigner, a designer recruitment platform, and Goodpatch Anywhere, a remote design team service, catering to the growing demand for flexible digital solutions. Operating in the competitive Software - Infrastructure sector, Goodpatch serves clients seeking cutting-edge digital transformation. With a market cap of ¥5.84 billion (as of latest data), the company combines creative design expertise with technological innovation, positioning itself as a niche player in Japan's tech-driven economy.
Goodpatch presents a specialized investment opportunity in Japan's UI/UX design sector, with modest revenue (¥3.94 billion) but thin profitability (net income of ¥11.5 million). The company maintains a strong cash position (¥3.28 billion) against minimal debt (¥401 million), suggesting financial stability. However, negative operating cash flow (-¥57.1 million) raises concerns about near-term cash generation. The stock's beta of 0.704 indicates lower volatility than the broader market, potentially appealing to risk-averse investors. With no dividend payout and reliance on Japan's digital transformation trends, Goodpatch's growth depends on expanding its design tools and consulting services. Investors should weigh its niche expertise against scalability challenges in a competitive global design software market.
Goodpatch competes in the UI/UX design consulting space with a dual focus on services and proprietary tools (Strap, Prott). Its competitive advantage lies in localized Japanese market expertise and integrated design-to-development offerings, differentiating from pure-play software firms. The company's recruitment platform (ReDesigner) creates a talent pipeline, addressing industry skill shortages. However, its small scale (¥3.9B revenue) limits R&D spending compared to global SaaS giants. Goodpatch's tools face competition from established prototyping platforms like Figma and Miro, though its consulting services provide cross-selling opportunities. The capital-light model (minimal capex) allows flexibility, but reliance on Japan's domestic market (98% of revenue) exposes it to local economic cycles. Strategic partnerships with Japanese enterprises could deepen market penetration, while international expansion remains untapped. The company's challenge is scaling its tools beyond consulting clients to achieve software-like margins.