Stock Analysis & Valuation Pasco Corporation (9232.T)

• Previous Close: ¥2,131.00
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, ¥	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	2960.13	39
Graham Formula	2131.34	0

Strategic Investment Analysis

Company Overview

Pasco Corporation (9232.T) is a leading provider of geospatial information services headquartered in Tokyo, Japan. Operating under the Industrials sector in the Specialty Business Services industry, Pasco specializes in acquiring, analyzing, and delivering geospatial data through advanced technologies such as spaceborne, airborne, and ground-based surveying. The company serves both public and private sectors, offering solutions like GIS cloud services, disaster prevention systems, and infrastructure management. With a history dating back to 1949, Pasco has evolved into a key player in Japan's geospatial market, supported by its parent company Secom Co., Ltd. The firm's expertise in aerial photography, laser surveying, and regional analysis positions it as a critical partner for urban planning, environmental monitoring, and disaster mitigation. Pasco's international operations further enhance its market reach, making it a trusted name in geospatial intelligence.

Investment Summary

Pasco Corporation presents a stable investment opportunity with a market cap of ¥30.68 billion and a beta of 0.407, indicating lower volatility relative to the market. The company reported ¥60.7 billion in revenue and ¥5.09 billion in net income for FY 2024, with a diluted EPS of ¥353.68. Operating cash flow stood at ¥5.39 billion, though capital expenditures were negative ¥997 million. Pasco maintains a solid cash position of ¥19.73 billion but carries ¥27.76 billion in total debt. The dividend yield is modest at ¥50 per share. While the company benefits from its niche in geospatial services and government contracts, investors should monitor debt levels and competitive pressures in the evolving geospatial technology sector.

Competitive Analysis

Pasco Corporation holds a competitive edge in Japan's geospatial services market through its diversified surveying technologies and strong government ties. Its expertise in aerial and ground-based surveying, combined with GIS cloud services, differentiates it from generalist competitors. The company's affiliation with Secom Co., Ltd. provides financial stability and potential synergies in security and infrastructure services. However, Pasco faces competition from global geospatial firms with broader technological capabilities and larger R&D budgets. Its domestic focus may limit growth compared to multinational players, but its deep regional knowledge ensures steady demand from Japanese municipalities and enterprises. The firm's ability to integrate emerging technologies like AI and IoT into its geospatial solutions will be crucial for maintaining its market position.

Major Competitors

• SB Technology Corp. (4726.T): SB Technology provides IT and geospatial solutions, competing with Pasco in GIS and cloud services. Its strength lies in digital transformation services, but it lacks Pasco's specialized surveying expertise. The company has a broader IT portfolio but may not match Pasco's depth in geospatial data acquisition.
• Nippon Telegraph and Telephone Corporation (NTT) (9432.T): NTT offers geospatial and IoT solutions through its extensive telecom infrastructure. Its vast resources and technological capabilities pose a threat to Pasco, but NTT's focus is more on telecom integration than specialized surveying. Pasco retains an advantage in niche geospatial applications.
• T-Gaia Corporation (3738.T): T-Gaia provides GIS and location-based services, overlapping with Pasco's offerings. It has strong partnerships in retail and logistics but lacks Pasco's comprehensive surveying capabilities. The company's focus on commercial applications contrasts with Pasco's government and infrastructure emphasis.
• Max Sound Corporation (MAXD): Max Sound operates in geospatial audio and data visualization, a different niche than Pasco. Its US focus limits direct competition, but its innovative approaches in data representation could influence broader geospatial trends. Pasco's established market presence in Japan provides insulation against such niche players.