| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 3126.12 | 22 |
| Intrinsic value (DCF) | 55828.57 | 2083 |
| Graham-Dodd Method | 1656.01 | -35 |
| Graham Formula | 5227.65 | 104 |
Agratio urban design Inc. (3467.T) is a Japanese real estate company specializing in the design, construction, and distribution of detached houses. Founded in 2009 and headquartered in Shinjuku, Japan, the company also offers research and consulting services to support home sales. Operating in Japan's competitive real estate services sector, Agratio urban design focuses on delivering high-quality residential properties tailored to urban and suburban markets. The company's business model integrates design expertise with construction efficiency, catering to Japan's demand for modern, functional housing solutions. With a market capitalization of approximately ¥10.17 billion, Agratio urban design plays a niche role in Japan's real estate industry, emphasizing personalized housing solutions. The company's financials reflect its position in a cyclical industry, with revenue of ¥27.61 billion and net income of ¥873 million in its latest fiscal year. Investors interested in Japan's housing market and small-cap real estate firms may find Agratio urban design an intriguing opportunity.
Agratio urban design presents a mixed investment profile. The company operates in Japan's stable but competitive housing market, benefiting from steady demand for detached homes. However, its financials reveal risks, including negative operating cash flow (-¥588 million) and high total debt (¥17.08 billion), which could strain liquidity. The company's low beta (0.199) suggests relative stability compared to broader markets, but its small size limits economies of scale. A dividend yield of ¥96 per share may appeal to income-focused investors, but sustainability depends on improving cash flow. The stock could suit investors seeking exposure to Japan's residential real estate sector, but caution is warranted due to leverage and operational cash burn.
Agratio urban design competes in Japan's fragmented real estate services sector, where differentiation hinges on design quality, pricing, and customer service. The company's focus on detached houses positions it against larger homebuilders and regional contractors. Its competitive advantage lies in specialized urban housing solutions, but its small scale limits bargaining power with suppliers and lenders. High debt levels (¥17.08 billion vs. ¥6.25 billion cash) indicate financial constraints compared to better-capitalized rivals. The company's negative operating cash flow suggests inefficiencies in working capital management, a disadvantage versus competitors with stronger cash generation. However, Agratio's niche expertise in urban design could appeal to buyers seeking customization, a segment where larger players may lack flexibility. The firm's ability to navigate Japan's aging population and urbanization trends will be critical to maintaining relevance. Without significant scale or diversification, Agratio remains vulnerable to economic downturns and rising interest rates, which could pressure its highly leveraged balance sheet.