| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2053.57 | -24 |
| Intrinsic value (DCF) | 940.95 | -65 |
| Graham-Dodd Method | 2127.18 | -22 |
| Graham Formula | 2324.31 | -14 |
Yurtec Corporation (1934.T) is a leading Japanese facility engineering company specializing in construction, maintenance, and repair of electric power and infrastructure systems. Headquartered in Sendai, Japan, Yurtec provides comprehensive engineering services, including electrical, air conditioning, water supply, drainage, and information communication systems for office buildings, factories, public facilities, hospitals, and shopping malls. Founded in 1944, the company serves private enterprises and electrical power companies, ensuring reliable infrastructure solutions. Operating in the Industrials sector under Engineering & Construction, Yurtec has established itself as a key player in Japan's infrastructure development, with a market capitalization of ¥132.4 billion. The company’s diversified service portfolio and strong regional presence make it a critical contributor to Japan’s industrial and urban development.
Yurtec Corporation presents a stable investment opportunity with a low beta (0.368), indicating lower volatility compared to the broader market. The company reported solid financials for FY2025, with ¥257.2 billion in revenue and ¥11.98 billion in net income, translating to a diluted EPS of ¥169.91. Yurtec maintains a healthy balance sheet with ¥33.77 billion in cash and ¥8.24 billion in total debt, reflecting prudent financial management. The company also offers a dividend yield, with a dividend per share of ¥72. However, investors should consider Japan’s slow economic growth and potential regulatory changes in infrastructure spending as risks. Overall, Yurtec’s steady cash flow (¥15.08 billion operating cash flow) and strong industry positioning make it a reliable choice for conservative investors.
Yurtec Corporation competes in Japan’s facility engineering and construction sector, where differentiation is driven by technical expertise, project execution efficiency, and long-term client relationships. The company’s competitive advantage lies in its diversified service offerings, covering electrical, HVAC, and civil engineering, which allows it to secure large-scale infrastructure projects. Yurtec’s strong regional presence in Sendai and broader Japan enhances its ability to win contracts from both private and public sectors. However, the company faces competition from larger engineering firms with greater financial resources and international reach. Yurtec’s focus on maintenance and repair services provides recurring revenue, but its growth may be constrained by Japan’s aging infrastructure and limited overseas expansion. The company’s low debt levels and stable cash flows position it well for sustained operations, but it must innovate to compete with technologically advanced rivals.