| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 2590.12 | 1 |
| Intrinsic value (DCF) | 807.38 | -69 |
| Graham-Dodd Method | 4933.23 | 92 |
| Graham Formula | 4646.38 | 81 |
Tokai Lease Co., Ltd. is a leading Japanese company specializing in the manufacturing, sale, and leasing of temporary buildings and fixtures. Founded in 1963 and headquartered in Osaka, the company serves a diverse range of sectors, including retail (convenience stores), education (schools), government (post offices, disaster management agencies), and industrial (factories). Tokai Lease offers a comprehensive portfolio of solutions, including flat houses, unit houses, suspended ceilings, steel structures, and office equipment. The company plays a critical role in Japan's real estate services sector, providing flexible and scalable infrastructure solutions tailored to temporary and semi-permanent needs. With a strong market presence and a reputation for reliability, Tokai Lease is well-positioned to capitalize on Japan's demand for modular and temporary construction solutions.
Tokai Lease presents a niche investment opportunity in Japan's real estate services sector, with a focus on temporary buildings and fixtures. The company's stable revenue (JPY 17.18 billion in FY 2024) and net income (JPY 675 million) reflect steady demand for its solutions. However, high total debt (JPY 12.41 billion) and negative capital expenditures (JPY -2.996 billion) suggest financial leverage and reinvestment challenges. The low beta (0.135) indicates minimal correlation with broader market volatility, making it a defensive play. Investors may be attracted by the dividend yield (JPY 120 per share), but should monitor debt levels and competitive pressures in Japan's modular construction market.
Tokai Lease operates in a specialized segment of Japan's real estate services industry, focusing on temporary and modular structures. Its competitive advantage lies in its diversified product portfolio, serving multiple sectors (retail, government, education) with tailored solutions. The company benefits from long-standing relationships with institutional clients, including government agencies requiring disaster relief housing. However, Tokai Lease faces competition from larger construction firms and modular building providers that may offer more scalable or cost-efficient solutions. Its reliance on the domestic Japanese market limits growth potential compared to global competitors. The company's financials indicate moderate profitability (EPS of JPY 195.63) but high leverage, which could constrain expansion. Tokai Lease's niche expertise in temporary structures provides differentiation, but it must innovate to counter rising competition in prefabricated and sustainable building solutions.