| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 710.79 | 25 |
| Intrinsic value (DCF) | 362.04 | -36 |
| Graham-Dodd Method | 65.01 | -89 |
| Graham Formula | 227.60 | -60 |
CANDEAL Co., Ltd. (1446.T) is a Tokyo-based company specializing in construction and maintenance services for residential and commercial environments in Japan. Operating under the Industrials sector, the company provides a comprehensive suite of services, including repair, interior construction, inspection, and lifting services, alongside trading and distributing repair and interior decoration materials. Formerly known as Burn Holdings Co., Ltd., the company rebranded to CANDEAL in October 2016 to better reflect its diversified service offerings. With a market capitalization of approximately ¥5.12 billion, CANDEAL plays a vital role in Japan's construction industry, addressing the growing demand for housing maintenance and renovation. The company's integrated approach—combining service provision with material distribution—positions it as a key player in Japan's engineering and construction landscape, catering to both individual homeowners and commercial clients.
CANDEAL Co., Ltd. presents a niche investment opportunity within Japan's construction and maintenance sector. The company's diversified service portfolio and material distribution business provide stable revenue streams, supported by Japan's aging housing stock and demand for renovation services. However, investors should note the company's modest net income (¥137.96 million) relative to revenue (¥13.22 billion), indicating potential margin pressures. With a low beta (0.235), CANDEAL may appeal to risk-averse investors seeking exposure to Japan's domestic construction market. The company maintains a conservative financial position, with ¥1.62 billion in cash and equivalents against ¥1.50 billion in total debt. A dividend yield of approximately 0.7% (based on a ¥4 per share dividend) adds modest income appeal. Key risks include Japan's stagnant population growth and competitive pressures in the construction materials distribution segment.
CANDEAL Co., Ltd. operates in Japan's highly fragmented construction and maintenance industry, competing with both large general contractors and specialized service providers. The company's competitive advantage lies in its integrated business model, combining service delivery (repair, inspection, lifting) with material distribution, allowing for cost efficiencies and cross-selling opportunities. This dual approach differentiates CANDEAL from pure-play service firms or distributors. However, the company faces intense competition from larger construction firms like Daiwa House Industry and Sekisui House, which benefit from greater scale and brand recognition. CANDEAL's focus on maintenance and repair services—rather than new construction—provides some insulation from cyclical downturns in the housing market. The company's relatively small size (¥13.2 billion revenue) limits its ability to compete on large-scale projects but enables agility in serving localized demand. Challenges include rising material costs and labor shortages in Japan's construction sector, which could pressure margins. CANDEAL's ability to maintain relationships with material suppliers and subcontractors will be critical to sustaining its competitive position.