| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2017.80 | -33 |
| Intrinsic value (DCF) | 11451.20 | 282 |
| Graham-Dodd Method | 2079.29 | -31 |
| Graham Formula | 1514.50 | -50 |
Fudo Tetra Corporation (1813.T) is a leading Japanese engineering and construction firm specializing in civil engineering, ground improvement, and environmental block solutions. Founded in 1947 and headquartered in Tokyo, the company plays a pivotal role in Japan's infrastructure development, constructing energy facilities, coastal and river erosion control systems, water supply and drainage networks, railways, airports, highways, and harbor facilities. Operating in the Industrials sector, Fudo Tetra leverages decades of expertise to deliver structural foundation solutions critical for urban and industrial growth. With a market capitalization of approximately ¥33.6 billion, the company maintains a stable financial position, supported by diversified revenue streams from public and private infrastructure projects. Fudo Tetra's commitment to sustainable development and engineering excellence positions it as a key player in Japan's construction industry.
Fudo Tetra Corporation presents a stable investment opportunity with moderate growth potential in Japan's infrastructure sector. The company's diversified project portfolio and consistent revenue (¥67.9 billion in FY2024) provide resilience against economic fluctuations, as evidenced by its low beta (0.51). With a net income of ¥2 billion and a diluted EPS of ¥131.98, profitability remains steady. The firm's strong operating cash flow (¥7.1 billion) and manageable debt (¥5.4 billion) support its dividend payout (¥60 per share). However, investors should note the capital-intensive nature of the construction industry and potential risks from Japan's aging infrastructure demands and regulatory changes. The company's niche in ground improvement and environmental solutions offers competitive differentiation.
Fudo Tetra Corporation competes in Japan's highly fragmented engineering and construction market, differentiating itself through specialized expertise in ground improvement and environmental block technologies. The company's long-standing relationships with public sector clients provide a stable project pipeline, particularly in coastal and erosion control works where technical complexity creates barriers to entry. While larger domestic competitors dominate high-profile infrastructure projects, Fudo Tetra maintains profitability through selective bidding and operational efficiency (evidenced by its 3% net margin). Its ¥10.9 billion cash position allows for strategic investments in sustainable construction technologies. The firm's competitive weakness lies in limited international exposure compared to global engineering firms, and its revenue scale is modest relative to Japan's mega-contractors. However, its focus on technical niches and regional infrastructure needs provides insulation from pure price-based competition. The company's 76-year track record and participation in critical national projects enhance its reputation as a reliable specialist contractor.