| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2389.48 | 24 |
| Intrinsic value (DCF) | 1271.65 | -34 |
| Graham-Dodd Method | 960.86 | -50 |
| Graham Formula | 1889.88 | -2 |
Miroku Jyoho Service Co., Ltd. (9928.T) is a leading Japanese provider of IT and digital enterprise solutions tailored for tax accounting firms, CPA firms, and small-to-mid-sized businesses. Headquartered in Tokyo, the company specializes in business management software, ERP systems, financial accounting, tax compliance, and HR/payroll solutions. With a strong focus on digital transformation (DX), Miroku Jyoho offers industry-specific software development, cloud-based services, and consulting, including business succession planning and HR diagnostics. The company also provides digital marketing, advertising, and recruitment support, making it a one-stop solution for SMEs in Japan. Founded in 1977, Miroku Jyoho has established itself as a trusted partner in Japan's growing DX market, leveraging its expertise in regulatory compliance and operational efficiency. Its diversified service portfolio, including SPALO chatbot and account aggregation tools, positions it well in Japan's competitive business software sector.
Miroku Jyoho Service presents a stable investment opportunity with a low beta (0.382), indicating lower volatility relative to the market. The company reported solid FY2024 financials, including ¥43.97B in revenue and ¥4.24B net income, supported by strong operating cash flow (¥6.54B). Its dividend yield (assuming current share price) is attractive at ¥55 per share. However, the company operates in a highly competitive domestic software market with modest growth prospects, given Japan's aging SME sector. Its reliance on tax and accounting-related services provides steady demand but may limit scalability. Investors should weigh its strong cash position (¥18.89B) against its debt (¥9.29B) and capital expenditures (¥4.35B). The stock could appeal to income-focused investors seeking exposure to Japan's DX-driven SME sector.
Miroku Jyoho Service competes in Japan's fragmented business software market, differentiating itself through deep expertise in tax/accounting compliance and SME-focused solutions. Its competitive advantage lies in its integrated service model, combining software development, consulting, and outsourcing—a rarity among smaller Japanese IT firms. The company's long-standing relationships with tax accounting firms provide a sticky customer base, though this also creates dependency on Japan's regulatory environment. Unlike global ERP providers, Miroku Jyoho offers localized solutions with superior compliance features for Japanese SMEs. However, it lacks the R&D scale of larger competitors and faces pressure from cloud-native entrants. Its SPALO chatbot and HR diagnostics tools show innovation, but adoption remains limited compared to enterprise-focused rivals. The company's main challenge is balancing profitability in its core tax software business while investing in growth areas like digital marketing and recruitment services. Its ¥18.89B cash reserve provides flexibility for strategic acquisitions to enhance its DX capabilities.