| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2839.71 | -4 |
| Intrinsic value (DCF) | 994.37 | -66 |
| Graham-Dodd Method | 2062.27 | -30 |
| Graham Formula | 3139.15 | 6 |
CTI Engineering Co., Ltd. (9621.T) is a leading Japanese consulting engineering firm specializing in civil engineering and construction services. Headquartered in Tokyo, the company provides comprehensive solutions including planning, research, design, and project management across multiple sectors such as water and land management, transportation, urban development, and environmental sustainability. With a history dating back to 1945, CTI Engineering has established itself as a trusted partner in infrastructure development, disaster prevention, and environmental management. The company operates both domestically and internationally, leveraging its expertise in river and coastal management, dam construction, water supply systems, and urban planning. As part of the Industrials sector, CTI Engineering plays a critical role in Japan's infrastructure resilience and sustainable development initiatives. Its diversified service portfolio and long-standing reputation make it a key player in the Engineering & Construction industry.
CTI Engineering presents a stable investment opportunity with a low beta (0.296), indicating lower volatility compared to the broader market. The company reported solid financials for FY 2024, with revenue of ¥97.7 billion and net income of ¥6.7 billion, translating to a diluted EPS of ¥243.1. Its strong cash position (¥15.5 billion) and manageable debt (¥4.0 billion) provide financial flexibility. The dividend yield is attractive, with a dividend per share of ¥150. However, investors should note the modest operating cash flow (¥2.4 billion) and capital expenditures (¥-850 million), which may limit aggressive growth. The company's focus on Japan's infrastructure needs and disaster resilience offers steady demand, but reliance on domestic projects could pose risks if public spending declines.
CTI Engineering holds a competitive edge through its diversified service offerings and deep expertise in Japan's infrastructure and environmental sectors. Its long-standing reputation (founded in 1945) and government contracts provide stability, while its focus on disaster prevention aligns with Japan's pressing needs. The company's strengths lie in its integrated consulting services, covering everything from planning to project management, which allows it to secure large-scale public works projects. However, its international presence is limited compared to global engineering giants, restricting growth opportunities abroad. CTI's low beta suggests resilience to market fluctuations, but its reliance on domestic projects exposes it to Japan's economic and fiscal policies. Competitors with broader geographic diversification may outperform in global markets, while CTI's niche expertise in water and land management solidifies its domestic dominance. The company's environmental and social sector services position it well for sustainable infrastructure trends, but innovation in digital engineering (e.g., AI, IoT) could be an area for improvement relative to tech-savvy rivals.