| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 35663.62 | 775 |
| Intrinsic value (DCF) | 1472.49 | -64 |
| Graham-Dodd Method | 4851.47 | 19 |
| Graham Formula | 2377.73 | -42 |
NEC Capital Solutions Limited (8793.T) is a leading Japanese financial services provider specializing in leasing, installment sales, and financing solutions. Headquartered in Tokyo, the company operates across four key segments: Leasing and Installment Sales, Finance, RISA (Real Estate, Investment, and Advisory), and Other services. NEC Capital Solutions serves a diverse clientele, including public offices, local governments, business corporations, and small-to-medium enterprises (SMEs). The company offers leasing and rental services for IT and communication devices, office equipment, and industrial machinery, alongside loan services, factoring, and venture capital investments. Additionally, it engages in solar energy generation, healthcare-related businesses, and outsourcing services. Formerly known as NEC Leasing, Ltd., the company rebranded in 2008 to reflect its expanded financial solutions portfolio. With a market capitalization of ¥81.5 billion, NEC Capital Solutions plays a critical role in Japan's industrial leasing and financial services sector, leveraging its strong ties to NEC Corporation and a diversified revenue model.
NEC Capital Solutions presents a stable investment opportunity with moderate risk, as indicated by its low beta (0.269). The company reported ¥254.9 billion in revenue and ¥6.6 billion in net income for the fiscal year ending March 2025, with a diluted EPS of ¥306.94. However, negative operating cash flow (-¥33.3 billion) and high total debt (¥1.02 trillion) raise liquidity concerns. The company maintains a solid cash position (¥110.3 billion) and offers a dividend yield of ¥150 per share, appealing to income-focused investors. NEC Capital Solutions benefits from its diversified business model and strong industry positioning, but investors should monitor debt levels and cash flow trends closely.
NEC Capital Solutions holds a competitive edge in Japan's leasing and financial services market through its diversified portfolio and strong corporate backing from NEC Corporation. The company's leasing segment, particularly in IT and industrial equipment, benefits from long-term client relationships and recurring revenue streams. Its RISA segment provides additional stability through real estate and advisory services. However, NEC Capital Solutions faces intense competition from larger financial institutions and specialized leasing firms. While its low beta suggests resilience to market volatility, the company's high leverage and negative operating cash flow could limit growth flexibility. Its competitive positioning relies on niche expertise in technology and industrial leasing, but it must innovate to counter digital financing disruptors and larger competitors with stronger balance sheets.