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Stock Analysis & ValuationNakabohtec Corrosion Protecting Co.,Ltd. (1787.T)

Professional Stock Screener
Previous Close
¥5,760.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)7235.1526
Intrinsic value (DCF)2294.52-60
Graham-Dodd Method2078.94-64
Graham Formula6227.668

Strategic Investment Analysis

Company Overview

Nakabohtec Corrosion Protecting Co., Ltd. is a leading Japanese company specializing in corrosion protection services for metallic structures. Headquartered in Tokyo, the company provides comprehensive solutions including survey, analysis, design, engineering, and material supply to prevent corrosion. Operating in the industrials sector, Nakabohtec offers a range of services such as cathodic protection, anti-corrosion painting, coating, and environmental surveys. Additionally, the company provides construction services spanning civil engineering, electrical works, steel structures, and more. Established in 1951 and rebranded in 1991, Nakabohtec has built a strong reputation in Japan's metal fabrication industry. With a market capitalization of approximately ¥12.4 billion, the company continues to leverage its expertise to serve infrastructure, marine, and industrial clients, ensuring long-term durability and safety of metallic assets.

Investment Summary

Nakabohtec Corrosion Protecting Co., Ltd. presents a stable investment opportunity within Japan's industrials sector, supported by its niche focus on corrosion protection. The company's revenue of ¥13.78 billion and net income of ¥834.9 million reflect steady performance, while its zero debt and ¥1 billion cash position indicate financial stability. The diluted EPS of ¥338.75 and a dividend per share of ¥560 suggest shareholder-friendly policies. However, the company's growth prospects may be limited by its domestic focus and reliance on Japan's infrastructure spending. Investors should weigh its low beta (0.705) against potential industry cyclicality and competition in the corrosion protection market.

Competitive Analysis

Nakabohtec Corrosion Protecting Co., Ltd. holds a competitive edge in Japan's corrosion protection market due to its integrated service offerings, combining engineering expertise with material supply and construction capabilities. The company's long-standing presence since 1951 has allowed it to build strong client relationships, particularly in infrastructure and marine sectors. Its specialization in cathodic protection and anti-corrosion coatings differentiates it from general construction firms. However, Nakabohtec faces competition from larger industrial service providers and global corrosion protection specialists. The company's domestic focus limits its exposure to international markets, where competitors may have broader geographic reach. Its zero-debt balance sheet provides financial flexibility but may also indicate conservative growth strategies compared to leveraged peers. The company's ability to maintain profitability in a competitive and regulated industry will depend on continued demand for corrosion protection in Japan's aging infrastructure and industrial facilities.

Major Competitors

  • Yokogawa Bridge Holdings Corp. (5911.T): Yokogawa Bridge is a major Japanese infrastructure engineering firm with expertise in corrosion-resistant bridge construction. While broader in scope than Nakabohtec, it competes in corrosion protection for large-scale projects. Its strength lies in turnkey infrastructure solutions, but it lacks Nakabohtec's specialized focus on corrosion technologies.
  • Chiyoda Corporation (6366.T): Chiyoda is a global engineering firm providing corrosion protection among its industrial plant services. It has stronger international presence than Nakabohtec but is less specialized in standalone corrosion solutions. Its large-scale project capabilities compete with Nakabohtec in industrial applications.
  • JGC Holdings Corporation (1963.T): JGC Holdings offers engineering services including corrosion protection for energy and chemical plants. It competes with Nakabohtec in industrial applications but focuses more on international EPC projects. Its larger scale provides advantages in complex projects but may lack Nakabohtec's specialized corrosion expertise.
  • PPG Industries, Inc. (PPG): PPG is a global leader in protective coatings and competes with Nakabohtec in anti-corrosion paint solutions. While PPG has superior global reach and R&D capabilities, Nakabohtec benefits from local market knowledge and integrated service offerings in Japan. PPG's broader product portfolio gives it advantages in diversified applications.
  • Ampco-Pittsburgh Corporation (APY): Ampco-Pittsburgh manufactures corrosion-resistant metal products and competes in material supply segments. Its strength lies in specialized alloy production, while Nakabohtec focuses more on application services. The companies may collaborate rather than directly compete in many projects.
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