| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 2521750000.00 | 526461278 |
| Graham Formula | 10342391.30 | 2159063 |
PC Depot Corporation (7618.T) is a leading Japanese specialty retailer operating under the PC DEPOT and PC DEPOT Smart Life Store brands. Founded in 1994 and headquartered in Yokohama, the company provides a comprehensive range of PC and network products, along with repair and technical services under its PC DEPOT PC Clinic brand. As of December 2020, PC Depot Corporation managed a network of 14 PC DEPOT stores, 57 PC DEPOT Smart Life stores, and 64 PC DEPOT PC Clinic stores, combining company-owned, subsidiary-managed, and franchise partner locations. The company serves Japan's consumer cyclical sector, catering to both individual and business customers with its retail and service offerings. With a market capitalization of ¥3.83 billion, PC Depot Corporation plays a significant role in Japan's PC retail and after-sales service market, leveraging its nationwide store presence and technical expertise.
PC Depot Corporation presents a niche investment opportunity in Japan's specialty retail sector, with a focus on PC and network products. The company's FY2023 financials show ¥30.25 billion in revenue and ¥865 million in net income, with a conservative beta of 0.527 suggesting lower volatility compared to the broader market. While the company maintains a solid cash position of ¥6.79 billion, its modest market cap and limited store footprint (135 total locations) may constrain growth potential. The dividend payout appears sustainable given the company's operating cash flow of ¥1.26 billion. Investors should weigh the company's established regional presence against the challenges of Japan's competitive electronics retail market and potential margin pressures from online competitors.
PC Depot Corporation competes in Japan's crowded PC and electronics retail market with a differentiated strategy combining retail sales with technical services. The company's competitive advantage lies in its integrated service model through PC DEPOT PC Clinic, which creates recurring revenue streams and customer loyalty beyond one-time hardware sales. However, its store footprint remains relatively small compared to national electronics chains, limiting its geographic reach. The company's focus on technical services provides some insulation from pure price competition in hardware retailing, but it faces significant pressure from both large-scale electronics retailers (with greater purchasing power) and online platforms (with lower overhead costs). PC Depot's Smart Life stores represent an attempt to diversify beyond traditional PC products, though their contribution to overall revenue remains unclear. The company's financial stability (with reasonable debt levels at ¥4.85 billion against ¥6.79 billion cash) provides a foundation, but growth prospects may be constrained without significant expansion or digital transformation.