| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1294.06 | -16 |
| Intrinsic value (DCF) | 1388.59 | -10 |
| Graham-Dodd Method | 1223.87 | -21 |
| Graham Formula | 3001.99 | 95 |
Space Co., Ltd. (9622.T) is a leading Japanese engineering and construction firm specializing in the planning, design, and construction of commercial, cultural, and entertainment facilities. Founded in 1948 and headquartered in Tokyo, the company has established itself as a key player in Japan's industrials sector, focusing on high-profile projects such as shopping centers, department stores, museums, and exhibition spaces. Beyond construction, Space Co. also engages in interior finishing, display equipment production, and real estate services, offering a vertically integrated approach to facility development. With a market capitalization of approximately ¥27.9 billion, the company serves a diverse clientele, leveraging its expertise in both commercial and cultural infrastructure. Its long-standing industry presence and diversified service portfolio position it well in Japan's competitive construction landscape.
Space Co., Ltd. presents a stable investment opportunity with moderate growth potential, supported by its consistent revenue stream (¥64.2 billion in FY 2024) and solid profitability (net income of ¥2.55 billion). The company's low beta (0.303) suggests resilience to market volatility, appealing to risk-averse investors. However, its niche focus on Japan's domestic market limits geographic diversification, exposing it to local economic fluctuations. The firm maintains a strong balance sheet with ¥13.85 billion in cash and minimal debt (¥60.1 million), ensuring financial flexibility. A dividend yield of approximately 2% (¥54 per share) adds income appeal. Investors should weigh its steady cash flow against slower growth prospects in Japan's mature construction sector.
Space Co., Ltd. differentiates itself through its specialized expertise in commercial and cultural facility construction, a niche that combines architectural innovation with functional design. Its vertically integrated model—spanning planning, design, and execution—provides cost efficiencies and project control. The company's long-term client relationships and reputation for quality in Japan's premium retail and cultural segments offer a competitive edge. However, it faces pressure from larger general contractors like Shimizu Corp. and Kajima, which boast greater resources and international reach. Space Co.'s focus on high-value, bespoke projects insulates it from low-margin mass construction but limits scalability. Its minimal debt and strong cash position provide stability but may also indicate under-leveraged growth opportunities. While technological adoption in construction (e.g., BIM) is industry-standard, Space Co.'s smaller scale could hinder R&D investments compared to global peers. Its regional dominance in Japan is both a strength and a constraint in an increasingly globalized market.