| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2018.39 | 15 |
| Intrinsic value (DCF) | 793.08 | -55 |
| Graham-Dodd Method | 2073.73 | 18 |
| Graham Formula | 1809.08 | 3 |
Fujita Engineering Co., Ltd. (1770.T) is a leading Japanese engineering and construction firm specializing in facilities construction, including air-conditioning, sanitation, electrical, instrumentation, and mechanical installation works. Founded in 1926 and headquartered in Takasaki, Japan, the company operates domestically and internationally, offering comprehensive solutions for industrial and infrastructure projects. Fujita Engineering also engages in equipment sales, facility maintenance management, electronic device manufacturing, and water supply system contract management. With a market capitalization of approximately ¥13.5 billion, the company plays a vital role in Japan's industrials sector, leveraging decades of expertise to deliver high-quality engineering services. Its diversified operations and strong regional presence position it as a key player in Japan's infrastructure development and maintenance landscape.
Fujita Engineering presents a stable investment opportunity with moderate growth potential, supported by its consistent revenue stream (¥32.3 billion in FY2024) and solid net income (¥1.59 billion). The company's low beta (0.399) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, its limited international exposure and reliance on Japan's construction sector may constrain growth. The dividend yield (approximately 3.5% based on a ¥60 per share dividend) adds income appeal, while strong cash reserves (¥6.86 billion) and manageable debt (¥1.02 billion) indicate financial stability. Investors should weigh Japan's aging infrastructure demands against potential economic slowdown risks.
Fujita Engineering competes in Japan's fragmented engineering and construction sector by specializing in integrated facility solutions, differentiating itself through technical expertise in air-conditioning, electrical, and instrumentation works. Its competitive advantage lies in its long-standing reputation (founded in 1926) and diversified service portfolio, which includes maintenance management and equipment sales—creating recurring revenue streams. However, the company faces intense competition from larger conglomerates with greater resources for large-scale projects. Its regional focus (headquartered in Takasaki) provides localized expertise but may limit nationwide project scalability compared to Tokyo-based rivals. The company's ¥13.5 billion market cap positions it as a mid-tier player, requiring niche specialization to compete against giants like Shimizu Corp. or Kajima. Strengths include strong cash reserves and low debt, enabling project flexibility, while weaknesses include limited international diversification compared to global peers.