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Stock Analysis & ValuationRise Consulting Group, Inc. (9168.T)

Professional Stock Screener
Previous Close
¥540.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)832.8754
Intrinsic value (DCF)5679.43952
Graham-Dodd Method342.66-37
Graham Formula1868.28246

Strategic Investment Analysis

Company Overview

Rise Consulting Group, Inc. (9168.T) is a leading Japanese management consulting firm specializing in a diverse range of services, including project management, digital transformation, IT, fintech, M&A, and business process reengineering (BPR). Founded in 2010 and headquartered in Minato, Japan, the company serves businesses seeking strategic guidance in new tech adoption, overseas expansion, and new business development. Operating in Japan's competitive consulting sector, Rise Consulting Group leverages its local expertise and industry-specific knowledge to help clients navigate complex business challenges. With a market capitalization of approximately ¥25.1 billion, the firm has demonstrated steady financial performance, supported by strong revenue growth and profitability. Its focus on digital and fintech consulting aligns with Japan's push for corporate innovation, positioning the company as a key player in the Industrials sector's consulting services segment.

Investment Summary

Rise Consulting Group presents a moderately attractive investment opportunity with its stable financials, including ¥7.68 billion in revenue and ¥1.42 billion in net income (FY 2025). The company's low beta (0.41) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, its Japan-centric focus may limit growth potential compared to global consulting firms. The firm's strong cash position (¥2.46 billion) and manageable debt (¥1.91 billion) provide financial flexibility, while a dividend yield of approximately 1.5% (based on a ¥9 per share dividend) offers modest income. Investors should weigh its niche expertise against potential competition from larger multinational consultancies expanding in Japan.

Competitive Analysis

Rise Consulting Group competes in Japan's fragmented consulting market by offering specialized services in digital transformation, fintech, and M&A—areas experiencing high demand due to corporate modernization trends. Its competitive advantage lies in deep local market knowledge and agility compared to global giants, allowing tailored solutions for Japanese firms. However, the company lacks the global scale and brand recognition of multinational consultancies, which could limit its ability to secure large cross-border projects. Its focus on IT and fintech consulting differentiates it from traditional strategy-focused firms, but it faces competition from both domestic boutique consultancies and global players expanding their Japan operations. The firm's financial stability (positive operating cash flow of ¥1.45 billion) supports reinvestment in high-growth service lines, though scaling beyond Japan remains a challenge.

Major Competitors

  • SCSK Corporation (9719.T): SCSK provides IT consulting and system integration services, competing directly with Rise in digital transformation. Its larger scale (¥400B+ revenue) and established client base give it an edge in enterprise IT projects, but it lacks Rise's focus on fintech and niche strategy consulting.
  • OBIC Business Consultants Co. (4684.T): OBIC specializes in ERP and business process consulting, overlapping with Rise's BPR services. Its strong profitability (20%+ operating margins) and recurring revenue model make it formidable, though it has less emphasis on emerging tech like fintech where Rise competes.
  • TOKAI Communications Corp. (4746.T): A competitor in IT consulting and cloud services, TOKAI has stronger infrastructure capabilities but less strategic consulting depth. Its telecom roots provide cross-selling opportunities that Rise lacks, though it trails in M&A advisory services.
  • Accenture plc (ACN): The global consulting giant dominates in scale and multinational client reach, pressuring Rise on large digital transformation deals in Japan. However, Accenture's higher cost structure and less localized approach leave room for Rise in mid-market projects requiring Japan-specific expertise.
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