investorscraft@gmail.com

Stock Analysis & ValuationOhmori Co.,Ltd. (1844.T)

Professional Stock Screener
Previous Close
¥616.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)565.67-8
Intrinsic value (DCF)302.40-51
Graham-Dodd Method302.10-51
Graham Formula424.40-31

Strategic Investment Analysis

Company Overview

Ohmori Co., Ltd. is a Japan-based engineering and construction company specializing in waterworks infrastructure, apartment construction, and renewable energy solutions. Founded in 1967 and headquartered in Tokyo, the company operates in the industrials sector, focusing on both upper and lower waterworks projects. Ohmori also engages in the construction and sale of residential apartments, leasing of OLY equipment, and the sale of photovoltaic power generation equipment. With a market capitalization of approximately ¥5.28 billion, Ohmori plays a niche role in Japan's construction industry, leveraging its expertise in water infrastructure and sustainable energy solutions. The company's diversified business model allows it to capitalize on Japan's aging infrastructure needs and growing demand for renewable energy, positioning it as a key player in regional development projects.

Investment Summary

Ohmori Co., Ltd. presents a mixed investment profile. The company's stable revenue (¥5.98 billion) and net income (¥414 million) reflect its steady operations in Japan's construction sector. Its strong operating cash flow (¥1.48 billion) and substantial cash reserves (¥3.45 billion) provide financial flexibility, while a low beta (0.244) suggests lower volatility compared to the broader market. However, high total debt (¥4 billion) and modest diluted EPS (¥22.19) indicate leverage and profitability challenges. The dividend yield (¥10 per share) may appeal to income-focused investors, but growth prospects are constrained by Japan's stagnant construction market. Investors should weigh Ohmori's niche expertise against macroeconomic risks and competitive pressures.

Competitive Analysis

Ohmori Co., Ltd. competes in Japan's fragmented engineering and construction sector, where differentiation is often based on specialized expertise and regional presence. The company's focus on waterworks infrastructure provides a competitive edge in a niche segment with high barriers to entry due to regulatory and technical requirements. Its involvement in photovoltaic equipment sales aligns with Japan's push for renewable energy, though this segment faces stiff competition from larger conglomerates. Ohmori's apartment construction business is relatively small-scale, limiting its ability to compete with major residential developers. The company's competitive advantage lies in its long-standing relationships with local governments and contractors, but its lack of international exposure and reliance on domestic demand make it vulnerable to Japan's economic stagnation. Financial stability (evidenced by strong cash reserves) supports its bidding capacity for public works projects, but higher debt levels compared to peers could constrain future growth initiatives.

Major Competitors

  • Kajima Corporation (1812.T): Kajima is one of Japan's 'Big Four' construction firms, with a dominant position in large-scale infrastructure and international projects. Its strengths include diversified revenue streams and strong technical capabilities, but its size limits agility in niche markets like Ohmori's waterworks segment. Kajima's global presence contrasts with Ohmori's domestic focus.
  • Nippon Steel Engineering Co., Ltd. (1881.T): Specializes in industrial plant construction and steel structures, overlapping with Ohmori in infrastructure. Stronger in heavy engineering but less focused on waterworks. Its parent company backing provides financial stability but may lack Ohmori's localized water sector expertise.
  • Penta-Ocean Construction Co., Ltd. (1893.T): A marine construction leader with strengths in coastal and tunneling projects. Competes directly with Ohmori in water infrastructure but with greater scale and technical resources. However, Ohmori may have deeper regional relationships for municipal waterworks projects.
  • Sumitomo Forestry Co., Ltd. (1911.T): Focuses on wood construction and housing, competing with Ohmori's apartment segment. Larger scale in residential development but lacks Ohmori's waterworks specialization. Stronger in sustainable materials but less diversified across construction subsectors.
HomeMenuAccount