| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1299.42 | 22 |
| Intrinsic value (DCF) | 29208.49 | 2653 |
| Graham-Dodd Method | 1043.75 | -2 |
| Graham Formula | 8033.48 | 657 |
First-corporation Inc. (1430.T) is a Tokyo-based general construction company specializing in residential construction, particularly condominiums and apartments. Founded in 2011, the company operates in Japan's competitive consumer cyclical sector, catering to the demand for urban housing solutions. With a market capitalization of approximately ¥11.3 billion, First-corporation Inc. focuses on delivering quality residential projects in a market characterized by high land prices and stringent building regulations. The company's financials reflect its niche positioning, with revenues of ¥28.5 billion and net income of ¥944.9 million in the latest fiscal year. Despite operating in a capital-intensive industry, First-corporation maintains a solid cash position of ¥4.1 billion, though its operating cash flow was negative at ¥1.57 billion, indicating potential liquidity challenges. The company's strategic focus on Japan's urban residential market positions it to benefit from long-term housing demand, though it faces stiff competition from larger construction firms.
First-corporation Inc. presents a mixed investment profile. On the positive side, the company operates in Japan's stable residential construction sector, with a focus on urban condominiums and apartments—a segment with consistent demand. The company's net income of ¥944.9 million and EPS of ¥79.11 indicate profitability, while its dividend per share of ¥31 offers modest income potential. However, negative operating cash flow (-¥1.57 billion) raises concerns about short-term liquidity, despite a healthy cash position. The company's beta of -0.003 suggests low correlation with broader market movements, which could appeal to risk-averse investors. Given its small market cap and niche focus, First-corporation may appeal to investors seeking exposure to Japan's residential construction sector, but its competitive positioning against larger firms and cash flow challenges warrant caution.
First-corporation Inc. operates in Japan's highly competitive residential construction sector, where it competes with both large conglomerates and regional players. The company's competitive advantage lies in its specialized focus on urban condominiums and apartments, allowing it to target specific market segments efficiently. However, its relatively small scale (¥28.5 billion revenue) limits its ability to compete on large-scale projects or benefit from economies of scale like larger rivals. The company's negative operating cash flow suggests potential inefficiencies in working capital management compared to more established competitors. Its ¥4.1 billion cash reserve provides some financial flexibility, but its ¥5.09 billion debt load indicates moderate leverage. In Japan's construction industry, where relationships with suppliers and land developers are critical, First-corporation's 13-year operating history may put it at a disadvantage against older firms with deeper industry ties. The company's ability to maintain profitability (¥944.9 million net income) in this environment demonstrates some operational effectiveness, but its long-term competitiveness will depend on securing prime urban projects and improving cash flow generation.