| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 377.92 | -26 |
| Graham Formula | 334.64 | -34 |
ETS Holdings Co., Ltd. is a leading Japanese engineering and construction company specializing in electric power infrastructure. Founded in 1922 and headquartered in Tokyo, the company provides comprehensive services including construction and maintenance of power transmission lines, substations, and renewable energy power plants. ETS Holdings also offers expertise in electrical, instrumentation, and communication systems, as well as disaster prevention solutions. Operating both domestically and internationally, the company plays a crucial role in Japan's energy sector, particularly in supporting the transition to renewable energy. With a strong focus on sustainability and innovation, ETS Holdings is well-positioned to capitalize on Japan's growing demand for energy infrastructure modernization and green energy solutions. The company's diversified service portfolio and long-standing industry presence make it a key player in the industrials sector.
ETS Holdings presents a mixed investment profile. The company operates in a stable and essential industry with steady demand for power infrastructure services, supported by Japan's energy transition initiatives. However, its financial performance shows modest profitability with a net income of JPY 76 million on revenues of JPY 8.07 billion, indicating thin margins. The company maintains a solid cash position (JPY 2.87 billion) but carries significant debt (JPY 2.22 billion). Its low beta (0.388) suggests lower volatility compared to the market, which may appeal to risk-averse investors. The dividend yield is attractive, with a dividend per share of JPY 16. Investors should weigh the company's established market position against its financial leverage and margin pressures in a competitive industry.
ETS Holdings competes in Japan's engineering and construction sector, focusing on electric power infrastructure. Its competitive advantage lies in its long-standing industry expertise (founded in 1922) and comprehensive service offerings covering the entire power infrastructure value chain—from construction to maintenance. The company's involvement in renewable energy projects positions it well for Japan's energy transition. However, the industry is highly competitive with low differentiation among service providers, putting pressure on margins. ETS Holdings' domestic focus provides stability but limits growth potential compared to global peers. Its relatively small market cap (JPY 3.24 billion) may restrict its ability to compete for large-scale international projects. The company's strength in underground power transmission and substation work provides niche advantages, but it faces competition from larger conglomerates with more diversified operations and stronger balance sheets.