| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 2534.91 | 76 |
| Graham Formula | 2262.34 | 57 |
Tobishima Corporation (1805.T) is a leading Japanese construction and engineering firm with a rich history dating back to 1883. Headquartered in Tokyo, the company operates across civil engineering, building construction, urban development, and environmental enhancement projects. Tobishima specializes in infrastructure development, including roads, ports, water supply systems, and public facilities, while also engaging in waste management, real estate, and energy supply. The company's diversified business model extends to intellectual property licensing, software development, and agricultural product processing, making it a versatile player in Japan's industrials sector. With a strong focus on sustainability, Tobishima is involved in environmental purification and recycling initiatives, positioning itself as a key contributor to Japan's infrastructure modernization and green transition. Its international operations further enhance its market reach, though domestic projects remain its core revenue driver.
Tobishima Corporation presents a stable investment opportunity within Japan's construction sector, supported by its long-standing industry presence and diversified operations. The company's FY2024 financials show a net income of ¥3.4 billion and a diluted EPS of ¥177.83, though negative operating cash flow (-¥9.98 billion) raises liquidity concerns. With a market cap of ¥27.5 billion and a low beta (0.429), Tobishima is relatively insulated from market volatility but may lag in high-growth environments. The dividend yield (~2.5% based on a ¥70 per share payout) adds income appeal. Risks include high total debt (¥34.9 billion) and reliance on Japan's infrastructure spending cycles. Investors should monitor government construction budgets and Tobishima's ability to improve cash flow generation.
Tobishima Corporation competes in Japan's fragmented construction sector, where scale and specialization determine market positioning. Its competitive advantage lies in its full-service capabilities—spanning planning, design, construction, and maintenance—which allow it to secure large-scale public infrastructure contracts. The company's environmental enhancement division differentiates it from general contractors, aligning with Japan's push for sustainable infrastructure. However, Tobishima lacks the global footprint of larger peers like Kajima or Shimizu, limiting its exposure to high-growth international markets. Its mid-tier size also means it faces pricing pressure from both mega-contractors and regional firms. Strengths include expertise in complex civil engineering projects and a diversified revenue base, but weaker operating cash flow suggests inefficiencies compared to leaner competitors. The company's real estate and waste management segments provide stability but contribute less to growth compared to pure-play construction leaders.