| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1474.81 | 26 |
| Intrinsic value (DCF) | 725.87 | -38 |
| Graham-Dodd Method | 3113.82 | 166 |
| Graham Formula | n/a |
First Juken Co., Ltd. (8917.T) is a leading Japanese residential construction company specializing in the construction and sale of detached houses. Headquartered in Amagasaki, Japan, the company has built a strong reputation since its founding in 1999 by offering high-quality housing solutions. Beyond construction, First Juken provides a range of complementary services, including subcontracting, construction consulting, real estate sales, brokerage, rental, and management. Additionally, the company operates in the insurance sector, offering non-life insurance agency and life insurance solicitation services. Operating in the consumer cyclical sector, First Juken plays a vital role in Japan's residential construction industry, catering to the demand for single-family homes. With a market capitalization of approximately ¥13.7 billion, the company maintains a stable financial position, supported by consistent revenue streams and a diversified service portfolio. Its focus on quality and customer service positions it as a trusted name in Japan's competitive housing market.
First Juken presents a stable investment opportunity within Japan's residential construction sector, supported by its diversified revenue streams and strong financials. The company reported ¥35.99 billion in revenue and ¥2.5 billion in net income for the latest fiscal period, with a diluted EPS of ¥179.6. Its operating cash flow of ¥6.04 billion and substantial cash reserves of ¥20.55 billion provide financial flexibility. However, investors should note the company's high total debt of ¥13.28 billion, which could pose risks in a rising interest rate environment. The low beta of 0.241 suggests lower volatility compared to the broader market, making it a defensive play. The dividend yield, though modest, adds to its appeal for income-focused investors. Given Japan's aging population and urbanization trends, long-term demand for housing remains stable, but competition and economic conditions could impact growth.
First Juken Co., Ltd. operates in Japan's highly competitive residential construction market, where differentiation is often based on quality, pricing, and service offerings. The company's competitive advantage lies in its integrated business model, which includes not only construction but also real estate services and insurance, providing a one-stop solution for homebuyers. This diversification helps mitigate risks associated with cyclical downturns in the housing market. First Juken's focus on detached houses sets it apart from competitors that may concentrate on multi-family or commercial projects. However, the company faces intense competition from larger construction firms with greater economies of scale and brand recognition. Its regional presence, primarily in the Kansai area, may limit growth compared to nationwide players. The company's financial stability, evidenced by strong cash reserves and consistent profitability, supports its ability to weather market fluctuations. Yet, its relatively high debt load could constrain aggressive expansion or R&D investments compared to less leveraged peers. In summary, First Juken's niche focus and service diversification provide resilience, but scalability and geographic reach remain challenges in a crowded market.