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Stock Analysis & ValuationNOMURA Co., Ltd. (9716.T)

Professional Stock Screener
Previous Close
¥1,366.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, ¥Upside, %
Artificial intelligence (AI)854.03-37
Intrinsic value (DCF)21487.401473
Graham-Dodd Method386.76-72
Graham Formula1188.24-13

Strategic Investment Analysis

Company Overview

NOMURA Co., Ltd. (9716.T) is a leading Japanese firm specializing in the design, construction, and management of architectural spaces, with a rich history dating back to 1892. Operating in the Engineering & Construction sector, the company provides comprehensive services including architectural planning, interior design, facility management, and exhibition production for commercial complexes, shopping centers, museums, and public spaces. With a strong presence in Japan and select international markets, NOMURA Co. integrates creativity and technical expertise to enhance visitor experiences. The company’s diversified business model spans design, manufacturing, publishing, and consulting, making it a key player in Japan’s industrial and commercial infrastructure development. Its commitment to innovation and sustainability positions it as a trusted partner for large-scale architectural and spatial projects.

Investment Summary

NOMURA Co., Ltd. presents a stable investment opportunity with a market capitalization of ¥95.1 billion and a low beta of 0.343, indicating lower volatility compared to the broader market. The company reported solid FY2025 revenue of ¥150.3 billion and net income of ¥6.8 billion, with a diluted EPS of ¥60.6. Notably, it maintains a debt-free balance sheet and holds ¥31.3 billion in cash, providing financial flexibility. However, operating cash flow (¥1.7 billion) is modest relative to revenue, and capital expenditures (-¥489 million) suggest restrained growth investments. The dividend yield is attractive at ¥32 per share, appealing to income-focused investors. Risks include exposure to Japan’s economic conditions and potential cyclical downturns in construction and retail sectors.

Competitive Analysis

NOMURA Co. differentiates itself through its integrated service offerings, combining architectural design, construction, and facility management under one roof. Its long-standing reputation (founded in 1892) and expertise in high-profile projects (e.g., museums, commercial complexes) provide a competitive edge in Japan’s niche engineering and construction market. The company’s diversified revenue streams—spanning design, publishing, and consulting—reduce reliance on any single segment. However, its international presence is limited compared to global peers, potentially capping growth opportunities. While its debt-free status is a strength, competitors with higher leverage may outpace it in scaling operations. NOMURA’s focus on visitor-attraction spaces aligns with Japan’s tourism and retail growth, but it faces stiff competition from larger construction firms and specialized design studios.

Major Competitors

  • Kajima Corporation (1812.T): Kajima is a major Japanese construction firm with global operations, offering broader scale and resources than NOMURA. It excels in large-scale infrastructure but lacks NOMURA’s specialization in architectural design and visitor spaces. Kajima’s higher debt levels could limit flexibility in downturns.
  • JGC Holdings Corporation (1963.T): JGC focuses on industrial and energy-sector engineering, differing from NOMURA’s commercial and cultural projects. Its international reach is stronger, but it lacks NOMURA’s integrated design-construction model for retail and leisure spaces.
  • Comsys Holdings Corporation (1721.T): Comsys specializes in electrical and mechanical construction, competing indirectly with NOMURA in facility management. It has a stronger technical focus but lacks NOMURA’s creative design capabilities for public and commercial spaces.
  • Daito Trust Construction Co., Ltd. (1878.T): Daito dominates Japan’s rental housing construction market, a segment NOMURA does not prioritize. Its scale is larger, but it lacks NOMURA’s expertise in high-end architectural design and cultural facilities.
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