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Stock Analysis & ValuationMasaru Corporation (1795.T)

Professional Stock Screener
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¥4,710.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)4778.091
Intrinsic value (DCF)169160.563492
Graham-Dodd Method4589.64-3
Graham Formula3628.91-23

Strategic Investment Analysis

Company Overview

Masaru Corporation (1795.T) is a Tokyo-based construction company specializing in building repair, renovation, and renewal works, particularly in condominiums and skyscrapers. Founded in 1955, the company has established itself as a key player in Japan's engineering and construction sector, focusing on sealing and waterproofing solutions for high-rise structures. Operating in the industrials sector, Masaru Corporation serves a niche market with specialized expertise in maintaining and upgrading aging infrastructure, a critical need in Japan's urban centers. With a market capitalization of approximately ¥3.6 billion, the company maintains a stable financial position, supported by steady revenue streams from its core construction activities. Masaru Corporation's long-standing presence in the industry and focus on high-demand urban renewal projects position it as a reliable player in Japan's construction landscape.

Investment Summary

Masaru Corporation presents a stable but low-growth investment opportunity, primarily appealing to investors seeking exposure to Japan's construction sector. The company's niche focus on building repair and waterproofing provides steady revenue, but its small market cap (¥3.6B) and low beta (0.152) suggest limited volatility and modest growth potential. Financials indicate profitability (net income of ¥277M) and a strong cash position (¥2.35B), but revenue growth appears stagnant. The dividend yield (¥125 per share) may attract income-focused investors, though broader sector risks—such as Japan's aging population and economic stagnation—could constrain expansion. Given its specialization, Masaru is less exposed to large-scale construction downturns but may struggle to scale beyond its core market.

Competitive Analysis

Masaru Corporation competes in Japan's fragmented construction and renovation sector, where its primary advantage lies in specialized high-rise sealing and condominium renewal services. Unlike general contractors, Masaru's narrow focus allows for deeper expertise and cost efficiency in niche projects. However, its small scale limits its ability to compete for large infrastructure contracts dominated by giants like Shimizu or Kajima. The company's reliance on domestic urban renewal projects ties its growth to Japan's real estate market, which faces demographic headwinds. While Masaru's conservative financials (low debt, high cash reserves) provide stability, its lack of international presence or diversification into emerging construction technologies (e.g., modular building) may hinder long-term competitiveness. Competitors with broader service offerings or global footprints could outperform in growth, but Masaru's specialization shields it from cyclical downturns in new construction.

Major Competitors

  • Shimizu Corporation (1803.T): Shimizu is a major Japanese contractor with a diversified portfolio, including skyscrapers and public infrastructure. Its scale and resources far exceed Masaru's, but it lacks the same specialization in waterproofing and renewal. Shimizu's global presence (e.g., Southeast Asia) gives it growth avenues Masaru cannot match.
  • Kajima Corporation (1812.T): Kajima is another industry leader with strengths in large-scale projects and sustainability initiatives. While Kajima's technical expertise overlaps with Masaru's in building maintenance, its focus on mega-projects (e.g., stadiums, tunnels) places it in a different competitive tier. Kajima's R&D investments in green construction could pressure smaller players like Masaru to adapt.
  • Sumitomo Mitsui Construction Co. (1821.T): Sumitomo Mitsui Construction balances civil engineering and building works, competing indirectly with Masaru in urban renewal. Its stronger balance sheet and diversified project pipeline reduce reliance on niche markets, but it may lack Masaru's agility in specialized repair contracts.
  • Penta-Ocean Construction Co. (1893.T): Penta-Ocean excels in marine and seismic-resistant construction, giving it an edge in disaster-prone regions. While not a direct competitor in waterproofing, its engineering prowess could encroach on Masaru's technical reputation. Penta-Ocean's overseas projects (e.g., Singapore) highlight Masaru's domestic limitations.
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