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Stock Analysis & ValuationGreenEnergy & Company (1436.T)

Professional Stock Screener
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¥2,599.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)1605.38-38
Intrinsic value (DCF)14046.43440
Graham-Dodd Method1382.92-47
Graham Formula1832.64-29

Strategic Investment Analysis

Company Overview

GreenEnergy & Company (1436.T) is a Tokyo-based energy solutions provider specializing in renewable energy and smart infrastructure. Formerly known as Fit Corporation, the company rebranded in May 2024 to reflect its focus on sustainable energy projects, including solar power plant investments, agricultural power plants, grid storage batteries, net-zero energy houses, and smart agriculture. Operating in the Engineering & Construction industry under the Industrials sector, GreenEnergy & Company leverages Japan's push toward carbon neutrality to drive growth. With a market cap of ¥8.86 billion, the company combines technological innovation with maintenance services to offer end-to-end energy solutions. Its diversified portfolio positions it as a key player in Japan's renewable energy transition, targeting both residential and commercial markets.

Investment Summary

GreenEnergy & Company presents a moderate-risk investment opportunity with exposure to Japan's growing renewable energy sector. The company's revenue of ¥9.68 billion and net income of ¥330 million reflect steady performance, though its high beta (1.188) suggests sensitivity to market volatility. Positive operating cash flow (¥570 million) and manageable debt (¥4.72 billion) provide financial stability, but thin margins (3.4% net income margin) and modest EPS (¥80.53) indicate room for operational improvement. The ¥13/share dividend offers a yield, but investors should weigh Japan's regulatory support for renewables against execution risks in scaling projects.

Competitive Analysis

GreenEnergy & Company competes in Japan's fragmented renewable energy market by integrating niche technologies like agricultural power plants and net-zero housing. Its competitive edge lies in vertical integration—combining project development, storage solutions, and maintenance—which reduces reliance on third parties. However, the company faces stiff competition from larger conglomerates with deeper pockets and established EPC (engineering, procurement, construction) capabilities. Its smaller scale limits bargaining power with suppliers and clients, though agility allows faster adoption of emerging technologies like grid batteries. The rebranding to 'GreenEnergy' aligns with ESG trends but requires proven execution to differentiate from peers. Success hinges on securing long-term contracts and partnerships to offset Japan's high land and regulatory costs for renewables.

Major Competitors

  • Sumitomo Forestry Co., Ltd. (1911.T): Sumitomo Forestry dominates Japan’s sustainable construction sector with resources far exceeding GreenEnergy’s. Its strength lies in large-scale eco-friendly housing projects and timber resources, but it lacks GreenEnergy’s focus on decentralized energy solutions like solar farms. Weakness: slower adoption of battery storage tech.
  • JGC Holdings Corporation (1963.T): JGC is a global EPC leader in energy infrastructure, including renewables. Its engineering expertise and international reach overshadow GreenEnergy’s local operations, but it lacks specialization in smart agriculture or residential energy solutions. Weakness: high exposure to fossil fuel projects creates transition risks.
  • RENOVA, Inc. (9519.T): A pure-play renewable developer, RENOVA rivals GreenEnergy in solar/wind projects but with larger capacity (e.g., 1.2GW pipeline). Stronger financials and IPO backing give it an edge, but it doesn’t integrate agriculture or housing like GreenEnergy. Weakness: limited maintenance revenue streams.
  • SoftBank Group Corp. (9984.T): SoftBank’s SB Energy unit is a renewables giant with massive solar investments. Its scale and tech partnerships (e.g., with Tesla) are unmatched, but its broad focus (e.g., AI, telecom) dilutes energy specialization. Weakness: high leverage risks diverting capital from green projects.
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