| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1054.35 | 60 |
| Intrinsic value (DCF) | 4865.97 | 637 |
| Graham-Dodd Method | 1266.89 | 92 |
| Graham Formula | 1739.01 | 163 |
Kycom Holdings Co., Ltd. (9685.T) is a Japan-based technology company specializing in IT solutions, security systems, and business support services. Headquartered in Fukui, the company operates in the Software - Application sector, offering custom IT system development, security solutions (including fingerprint-based access control), software consulting, and infrastructure services. Additionally, Kycom provides data entry services and engages in employment/education, real estate, and office equipment leasing. Formerly known as Kyodo Computer Holdings, the company rebranded in 2011 and has been a key player in Japan's IT services market since its founding in 1968. With a market cap of approximately ¥3.48 billion, Kycom serves businesses requiring secure, tailored IT solutions while diversifying into ancillary sectors. Its hybrid business model combines software development with operational outsourcing, positioning it as a niche provider in Japan's competitive IT services landscape.
Kycom Holdings presents a mixed investment profile. The company maintains steady revenue (¥6.09B in FY2024) and net income (¥419M), with a diluted EPS of ¥82.5 and a modest dividend yield (¥10/share). Its strong cash position (¥2.15B) and manageable debt (¥2.4B) suggest financial stability, while a beta of 0.727 indicates lower volatility than the broader market. However, the company operates in a highly competitive IT services sector with limited international exposure, potentially capping growth. Investors may value its niche security solutions and diversified revenue streams (including real estate and leasing), but should monitor Japan's economic conditions and IT spending trends, which directly impact performance.
Kycom Holdings competes in Japan's fragmented IT services market, differentiating itself through specialized security solutions (e.g., fingerprint-based access control) and hybrid service offerings that combine software development with operational outsourcing. Its competitive advantage lies in localized, customized IT solutions for mid-market clients, avoiding direct competition with global IT giants. However, the company lacks the scale of larger Japanese IT firms, limiting its ability to compete on large-scale projects or pricing. Kycom’s diversification into real estate and leasing provides revenue stability but dilutes its tech focus. While its ¥3.48B market cap reflects its niche position, the company must innovate in high-demand areas like cybersecurity to fend off competitors. Its regional headquarters in Fukui may offer cost advantages but could restrict talent acquisition compared to Tokyo-based rivals. The firm’s reliance on domestic markets (100% revenue from Japan) exposes it to local economic cycles, unlike multinational peers with diversified geographic revenue.