| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1626.88 | 33 |
| Intrinsic value (DCF) | 539.47 | -56 |
| Graham-Dodd Method | 1742.21 | 42 |
| Graham Formula | 346.85 | -72 |
Shizuoka Gas Co., Ltd. (9543.T) is a leading Japanese utility company specializing in the production, supply, and sale of city gas in the Shizuoka region. Established in 1910 and headquartered in Shizuoka, Japan, the company plays a critical role in the country's energy infrastructure, ensuring reliable gas distribution to residential, commercial, and industrial customers. Beyond gas supply, Shizuoka Gas also sells gas appliances and undertakes gas-related construction projects, enhancing its revenue streams. Operating in the regulated gas sector, the company benefits from stable demand and government oversight, which provides predictable cash flows. With a market capitalization of approximately ¥81.2 billion, Shizuoka Gas is a key player in Japan's utilities sector, contributing to energy security and sustainability. The company's long-standing presence and regional focus position it well in a competitive market, supported by Japan's ongoing transition toward cleaner energy solutions.
Shizuoka Gas presents a stable investment opportunity within Japan's regulated utilities sector, characterized by predictable cash flows and low volatility (beta of 0.187). The company's revenue of ¥202.2 billion and net income of ¥8.8 billion for the fiscal year ending December 2024 reflect steady operational performance. With a strong balance sheet, including ¥36.3 billion in cash and equivalents and manageable total debt of ¥16.6 billion, Shizuoka Gas maintains financial flexibility. The company's dividend yield, supported by a ¥40 per share payout, adds appeal for income-focused investors. However, growth prospects may be limited by the mature nature of the gas utility market and regulatory constraints. Investors should weigh the stability of regulated returns against potential challenges from Japan's energy transition policies and competition from alternative energy sources.
Shizuoka Gas operates in a highly regulated and regionally segmented market, which provides a natural competitive moat. Its primary advantage lies in its entrenched position as the sole gas supplier in the Shizuoka region, ensuring consistent demand and pricing power under regulatory frameworks. The company's integrated business model—spanning gas supply, appliance sales, and construction services—enhances customer retention and cross-selling opportunities. However, Shizuoka Gas faces competition from other regional gas utilities and broader energy providers as Japan shifts toward renewable energy and electrification. The company's regional focus limits its exposure to national market dynamics but also caps expansion opportunities. Competitors with larger scale or diversified energy portfolios may have better resilience to regulatory changes or demand shifts. Shizuoka Gas's competitive positioning is further influenced by Japan's energy policies, which increasingly favor decarbonization, potentially pressuring traditional gas utilities to adapt their business models.