| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1118.22 | -3 |
| Intrinsic value (DCF) | 420.80 | -64 |
| Graham-Dodd Method | 644.48 | -44 |
| Graham Formula | 1464.75 | 27 |
Ohba Co., Ltd. (9765.T) is a leading Japanese engineering and construction consulting firm specializing in urban planning, infrastructure development, and environmental assessments. Founded in 1922 and headquartered in Chiyoda, Japan, the company provides comprehensive consulting services for city planning, land use optimization, and infrastructure design, including roads, bridges, and water systems. Ohba also offers specialized services in environmental research, real estate disposal consulting, and geographic information systems (GIS) for urban development. With a strong focus on sustainability and social infrastructure, Ohba plays a crucial role in Japan's urban transformation and infrastructure modernization. The company operates both domestically and internationally, leveraging its technical expertise to address complex urban challenges. As Japan continues to invest in smart cities and resilient infrastructure, Ohba is well-positioned to capitalize on long-term growth opportunities in the engineering and construction sector.
Ohba Co., Ltd. presents a stable investment opportunity with its niche expertise in urban planning and infrastructure consulting. The company's strong revenue (JPY 16.5B) and net income (JPY 1.34B) reflect steady demand for its services, supported by Japan's ongoing infrastructure investments. A low beta (0.216) suggests lower volatility compared to the broader market, making it a defensive play. However, negative operating cash flow (JPY -346M) raises concerns about short-term liquidity, despite a healthy cash position (JPY 3.12B). The dividend yield (~2.5% based on JPY 40 per share) adds income appeal. Risks include exposure to Japan's slowing population growth and potential delays in public infrastructure spending. Long-term prospects remain tied to Japan's urban redevelopment and environmental sustainability initiatives.
Ohba Co., Ltd. competes in Japan's fragmented engineering consulting sector, differentiating itself through deep technical expertise in urban planning and environmental assessments. Its century-long legacy provides brand credibility and long-term client relationships, particularly with public-sector entities. The company's integrated service model—combining land use consulting, infrastructure design, and environmental studies—creates cross-selling opportunities that smaller rivals cannot match. However, Ohba lacks the global scale of diversified engineering conglomerates and may face pricing pressure from larger competitors. Its zero-debt balance sheet (JPY 0 total debt) provides financial flexibility but may also indicate under-leveraged growth potential. Competitive advantages include specialized GIS capabilities and regulatory know-how in Japanese land use policies. Weaknesses include reliance on domestic markets (despite some international operations) and limited exposure to high-growth segments like renewable energy infrastructure. The company's focus on public-sector projects insulates it from economic cycles but also creates dependency on government budgets.