| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2099.05 | -5 |
| Intrinsic value (DCF) | 5275.62 | 140 |
| Graham-Dodd Method | 1001.43 | -55 |
| Graham Formula | 1673.95 | -24 |
Computer Engineering & Consulting, Ltd. (9692.T) is a leading Japanese provider of digital industry and system integration services, specializing in ICT solutions for the manufacturing sector. Founded in 1968 and headquartered in Tokyo, the company offers comprehensive services including system development, construction, maintenance, and operation, along with ICT implementation support, security solutions, and temporary staffing. Operating in the Software - Application industry under the Technology sector, the company plays a critical role in Japan's digital transformation, particularly in manufacturing. With a market capitalization of approximately ¥71.3 billion, Computer Engineering & Consulting leverages its deep industry expertise to deliver tailored IT solutions that enhance operational efficiency and cybersecurity for its clients. The company's strong financial position, highlighted by ¥56.2 billion in revenue and ¥4.04 billion in net income for the fiscal year ending January 2025, underscores its stability and growth potential in Japan's competitive ICT landscape.
Computer Engineering & Consulting presents a stable investment opportunity with low volatility, as indicated by its beta of 0.027. The company's strong revenue of ¥56.2 billion and net income of ¥4.04 billion demonstrate consistent profitability, supported by robust operating cash flow of ¥5.27 billion. With negligible debt (¥350 million) and substantial cash reserves (¥25.47 billion), the company maintains a solid balance sheet. The dividend payout of ¥55 per share adds to its appeal for income-focused investors. However, its reliance on the Japanese market and the manufacturing sector could pose concentration risks. Investors should weigh its steady performance against limited international diversification and exposure to Japan's economic fluctuations.
Computer Engineering & Consulting holds a niche position in Japan's ICT services market, particularly in manufacturing-focused system integration. Its competitive advantage lies in its deep sector expertise, long-standing client relationships, and comprehensive service offerings, from development to maintenance. The company's ability to provide end-to-end solutions, including security and staffing services, differentiates it from generalist IT firms. However, it faces intense competition from larger domestic players and global IT service providers with broader geographic and sectoral reach. While its specialization in manufacturing ICT is a strength, it also limits diversification. The company's financial stability and low debt provide resilience, but its growth may be constrained by Japan's relatively slow digital adoption compared to global peers. To maintain its edge, the company must continue innovating in Industry 4.0 technologies and expanding its service portfolio.