| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 4973.94 | 16 |
| Intrinsic value (DCF) | 20083.95 | 368 |
| Graham-Dodd Method | 6482.82 | 51 |
| Graham Formula | 16488.33 | 284 |
Cados Corporation (211A.T) is a Japan-based engineering and construction company specializing in architectural and civil engineering services. Headquartered in Yamaguchi, Japan, the company provides a comprehensive range of services, including construction work, planning, design, consulting, and real estate transactions. Founded in 1998, Cados Corp. has established itself as a regional player in Japan's construction sector, catering to both public and private infrastructure projects. With a market capitalization of approximately ¥3.57 billion, the company operates in the industrials sector, focusing on sustainable and efficient construction solutions. Cados Corp. maintains a diversified revenue stream through construction contracts, real estate leasing, and brokerage services, positioning itself as a versatile player in Japan's competitive construction industry. The company's financial stability, reflected in its positive net income and operating cash flow, underscores its resilience in a cyclical industry.
Cados Corporation presents a mixed investment profile. On the positive side, the company has demonstrated profitability with a net income of ¥405 million and strong operating cash flow of ¥876 million in the latest fiscal year. Its dividend payout of ¥85 per share may appeal to income-focused investors. However, the company operates in a highly competitive and capital-intensive industry with moderate market capitalization (¥3.57 billion), which may limit its ability to secure large-scale projects. The negative beta (-0.0009) suggests low correlation with broader market movements, potentially offering defensive characteristics. Investors should weigh the company's stable cash position (¥2.44 billion) against its substantial total debt (¥2.09 billion). Given its regional focus and smaller scale compared to industry leaders, Cados may be more suitable for investors seeking niche exposure to Japan's construction sector.
Cados Corporation operates in Japan's fragmented construction industry, competing against both large conglomerates and regional players. The company's competitive positioning is defined by its regional expertise in Yamaguchi and surrounding areas, where it has established local relationships and project experience. Unlike larger Japanese construction firms with international operations, Cados focuses on domestic mid-sized projects, allowing for more specialized service but limiting growth scalability. The company's integrated model—combining construction, design, and real estate services—provides a competitive edge in securing turnkey projects. However, its relatively small scale restricts bidding capacity for major infrastructure developments dominated by industry giants. Cados maintains adequate liquidity (¥2.44 billion cash) to fund operations, but its debt-to-equity ratio suggests moderate financial leverage compared to peers. The company's negative beta indicates resilience to market cycles, possibly due to its focus on essential infrastructure and real estate services. While not a cost leader, Cados differentiates through localized service quality and project customization—a strategy that works well in regional markets but faces pressure from national firms expanding into secondary cities.