| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1734.35 | -13 |
| Intrinsic value (DCF) | 1072.71 | -46 |
| Graham-Dodd Method | 1016.77 | -49 |
| Graham Formula | 2630.95 | 32 |
Hazama Ando Corporation (1719.T) is a leading Japanese construction and engineering firm with a rich history dating back to 1873. Headquartered in Tokyo, the company operates domestically and internationally, specializing in civil engineering, building construction, and related services. Its diverse project portfolio includes infrastructure such as dams, tunnels, roads, and urban development, as well as commercial, residential, and public facilities. Hazama Ando also engages in real estate transactions, environmental services, energy supply, and software development, making it a versatile player in the construction and industrial sectors. With a strong focus on sustainability and urban renewal, the company is well-positioned to capitalize on Japan's infrastructure modernization needs and global construction trends. Its integrated service model—from planning to maintenance—provides a competitive edge in the Engineering & Construction industry.
Hazama Ando Corporation presents a stable investment opportunity within the Japanese construction sector, supported by its long-standing reputation and diversified project portfolio. The company's solid revenue (¥394.1B) and net income (¥13.9B) in FY2024 reflect steady operational performance, though negative operating cash flow (-¥11.1B) raises liquidity concerns. With a low beta (0.118), the stock is relatively insulated from market volatility, appealing to conservative investors. The dividend yield (~2.5% based on ¥70/share) adds income appeal. However, exposure to Japan's aging infrastructure demands and cyclical construction risks warrants caution. Investors should monitor debt levels (¥23.6B) and capex efficiency (¥7.1B) amid rising material costs.
Hazama Ando competes in Japan's fragmented construction market by leveraging its integrated service model and expertise in large-scale civil engineering projects. Its competitive advantages include: (1) **Diversification** across building, infrastructure, and environmental services, reducing reliance on any single segment; (2) **Technical proficiency** in complex projects like dams and urban renewal, supported by in-house consulting; (3) **Historical prestige** as a 150-year-old firm, aiding contract wins. However, it faces stiff competition from larger peers (e.g., Shimizu, Kajima) with greater international reach and financial resources. While Hazama Ando's focus on domestic projects provides stability, it limits growth compared to globalized rivals. Its smaller scale (market cap ¥230B) may also hinder bidding for mega-projects. The firm differentiates through niche capabilities like offshore engineering and environmental remediation, but margin pressures from labor shortages and material inflation remain key challenges.