| Valuation method | Value, ¥ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 12679.27 | 2239 |
| Intrinsic value (DCF) | 273.78 | -49 |
| Graham-Dodd Method | 342.33 | -37 |
| Graham Formula | 556.68 | 3 |
Nac Co., Ltd. (9788.T) is a diversified Japanese company operating primarily in the water delivery and housing sectors. Headquartered in Tokyo, the company has evolved from its origins as Duskin Tsurugawa Co., Ltd. in 1971 to become a multifaceted player in Japan's industrials sector. Nac Co. specializes in home delivery water services, housing construction, and related consulting, while also engaging in pest control, cleaning services, and renewable energy solutions like solar power generation. The company further diversifies its revenue streams through cosmetics, dietary supplements, and financial services. With a market capitalization of approximately ¥24.2 billion, Nac Co. serves both residential and commercial markets, leveraging its expertise in construction know-how and sustainable products. Its integrated business model positions it uniquely in Japan's engineering and construction industry, combining traditional services with innovative energy-saving solutions.
Nac Co., Ltd. presents a mixed investment profile with both opportunities and risks. The company's diversified operations across water delivery, housing, and ancillary services provide revenue stability, but its modest net income of ¥1.44 billion on ¥54.4 billion revenue suggests thin margins. With a low beta of 0.175, the stock may appeal to conservative investors seeking limited market correlation, though its negative operating cash flow (-¥10 million) and significant capital expenditures (-¥287 million) raise liquidity concerns. The dividend yield appears sustainable at ¥22 per share, supported by a reasonable debt level (¥7.19 billion) and healthy cash reserves (¥8.06 billion). Investors should weigh Japan's shrinking population against the company's niche in essential services and energy-efficient housing solutions.
Nac Co. occupies a specialized niche in Japan's construction and water delivery sectors, differentiating itself through vertical integration and service diversification. Its competitive advantage stems from combining traditional housing construction with proprietary water delivery systems and eco-friendly solutions—a rare hybrid model in Japan's fragmented construction industry. The company's pest control and cleaning services create cross-selling opportunities with its housing clients, while its franchise consulting business extends reach without heavy capital investment. However, Nac Co. faces scalability challenges outside its regional strongholds and competes with larger construction firms for housing contracts. Its solar power and energy-saving products division is relatively small compared to specialized renewable energy providers. The water delivery business benefits from recurring revenue but competes with national beverage distributors. Financial strength is adequate (debt-to-equity ~0.3x), but limited R&D spending may hinder innovation against tech-driven construction rivals. The company's main edge lies in integrated customer solutions—combining housing, utilities, and maintenance—which larger competitors often outsource.