| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 568.57 | 63 |
| Intrinsic value (DCF) | 4673.75 | 1243 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 421.49 | 21 |
CELM, Inc. is a Tokyo-based company specializing in human resources and organizational development support services. Founded in 1995, CELM offers a comprehensive suite of services including management training, HR consulting, corporate culture reform, and career development support for individuals with disabilities. Operating in the Staffing & Employment Services sector under Industrials, CELM plays a vital role in enhancing workforce efficiency and corporate governance in Japan. With a market capitalization of approximately ¥7.03 billion, the company has established itself as a key player in Japan's HR consulting landscape. CELM's diversified service portfolio caters to middle management innovation, HR system construction, and disability employment support, positioning it as a holistic solution provider in organizational development. The company's strong cash position (¥1.97 billion) and conservative beta (0.141) reflect its stable financial footing in a competitive industry.
CELM presents a stable investment opportunity in Japan's HR services sector, with modest growth potential and low volatility (beta 0.141). The company maintains healthy fundamentals with ¥7.5 billion revenue and ¥631 million net income (8.4% margin), supported by strong operating cash flow (¥710 million). While the dividend yield appears modest (¥15/share), the company's debt-to-equity ratio remains manageable (¥561 million debt vs ¥1.97 billion cash). The primary investment appeal lies in CELM's niche positioning in organizational development and disability employment services - growing segments in Japan's aging workforce. However, investors should note the company's small market cap and domestic focus may limit growth potential compared to global HR firms. The capital-light business model and consistent profitability make CELM a conservative play in Japan's professional services sector.
CELM operates in a competitive Japanese HR services market where differentiation comes from specialized service offerings rather than scale. The company's competitive advantage stems from its integrated approach combining traditional staffing services with higher-margin organizational development consulting. Unlike general staffing firms, CELM has developed expertise in middle management training and corporate culture transformation - areas that command premium pricing and create client stickiness. Their disability employment support services provide another differentiation point in Japan's compliance-driven market. However, CELM lacks the scale advantages of larger staffing conglomerates and remains geographically concentrated in Japan. The company's ¥7.5 billion revenue is modest compared to industry leaders, limiting its bargaining power with large corporate clients. Financially, CELM maintains healthier margins than many staffing peers (8.4% net margin) due to its consulting-heavy mix, but faces pressure from both boutique consultancies and diversified HR giants. The company's challenge lies in scaling its specialized services while maintaining quality - an area where its 28 years of domestic experience provides some defensive moat.