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Stock Analysis & ValuationKyowa Engineering Consultants Co.,Ltd. (9647.T)

Professional Stock Screener
Previous Close
¥8,780.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)8340.04-5
Intrinsic value (DCF)9594.369
Graham-Dodd Method10455.1319
Graham Formula11323.0629

Strategic Investment Analysis

Company Overview

Kyowa Engineering Consultants Co., Ltd. is a leading Japanese engineering consultancy specializing in construction, disaster prevention, environmental improvement, and renewable energy solutions. Established in 1961 and headquartered in Tokyo, the company provides comprehensive structural design, maintenance, and construction management services for bridges, underground structures, and water facilities. Kyowa also excels in disaster prevention and reconstruction, offering hydrology and seismic design expertise, alongside urban planning and renewable energy development support. With a strong focus on sustainability, the firm aids in solar, hydro, wind, and biomass energy projects, contributing to Japan’s green energy transition. Operating both domestically and internationally, Kyowa Engineering Consultants plays a vital role in infrastructure resilience and regional revitalization, making it a key player in Japan’s industrials sector.

Investment Summary

Kyowa Engineering Consultants presents a stable investment opportunity with a low beta (0.214), indicating lower volatility compared to the broader market. The company’s revenue (¥8.06B) and net income (¥512.79M) reflect steady performance, supported by strong cash reserves (¥3.54B) and manageable debt (¥1.05B). Its dividend yield (¥30 per share) adds modest income appeal. However, the firm operates in a competitive and cyclical industry, with growth tied to Japan’s infrastructure spending and renewable energy policies. Investors should weigh its niche expertise against macroeconomic risks and sector competition.

Competitive Analysis

Kyowa Engineering Consultants holds a competitive edge through its diversified service portfolio, combining traditional engineering consultancy with emerging renewable energy solutions. Its specialization in seismic and hydrological design differentiates it in disaster-prone Japan, while its environmental and urban planning services align with sustainable development trends. The company’s strong cash position allows for flexibility in project bidding and R&D, though its smaller scale compared to global engineering giants limits international reach. Competitors like Nippon Koei and Pacific Consultants dominate larger infrastructure projects, but Kyowa’s agility and regional expertise secure mid-sized contracts. Its focus on renewable energy (solar, hydro, biomass) positions it well for Japan’s energy transition, though reliance on domestic demand exposes it to local economic fluctuations. Overall, Kyowa’s niche strengths balance its mid-market constraints.

Major Competitors

  • Nippon Koei Co., Ltd. (1954.T): Nippon Koei is a larger peer with global infrastructure projects, excelling in hydropower and transportation. Its international presence and scale overshadow Kyowa, but its bureaucratic structure may limit agility. Both compete in renewable energy, but Nippon Koei’s broader portfolio includes overseas development aid projects.
  • Digital Hearts Holdings Co., Ltd. (9244.T): While not a direct competitor, Digital Hearts highlights the tech shift in engineering services. Kyowa’s traditional focus on physical infrastructure contrasts with Digital Hearts’ IT-centric solutions, though both serve Japan’s industrial modernization. Kyowa’s renewable energy work may eventually intersect with smart infrastructure trends.
  • Pacific Consultants Co., Ltd. (1871.T): Pacific Consultants rivals Kyowa in domestic engineering consultancy, particularly in water and transportation. Its stronger government ties secure large public works contracts, but Kyowa’s renewable energy specialization offers a growth niche. Both face margin pressures from Japan’s stagnant construction sector.
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