1963 (JGC Holdings Corp) vs Nikkei 225 Comparison

1963

Nikkei 225

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1963

Nikkei 225

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1963

Nikkei 225

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Nikkei 225

1963

LTO

PWR

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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JGC Holdings Corp
Glance View

Market Cap

306.3B JPY

Industry

Construction

JGC Holdings Corp., rooted in Yokohama, is a venerable titan in the engineering and construction industry, with its inception dating back to 1928. Renowned for its large-scale projects worldwide, the company has carved a niche in the oil and gas sector, building refineries and petrochemical plants. Driven by its engineering prowess, JGC Holdings adeptly blends design, procurement, and construction capabilities, orchestrating complex projects that meet global industrial demands. This multifaceted approach not only ensures seamless project execution but also opens up diverse revenue streams from distinct project phases, from initial consultancy and feasibility studies to the final handover of the completed facility. Yet, its operations aren't confined to energy alone. JGC Holdings has broadened its horizons to encompass infrastructure development, environmental solutions, and life sciences, reflecting an astute adaptation to changing global needs. Its venture into renewable energy, with projects focused on solar power and LNG facilities, showcases its proactive strategy to pivot towards sustainable energy solutions. This diversification is not just a tactical maneuver to mitigate risks associated with the cyclical nature of the oil and gas industry but also a strategic alignment with the global shift towards sustainability. By leveraging its engineering expertise across multiple sectors, JGC Holdings secures a robust financial footing, ensuring steady growth and profitability amid an ever-evolving market landscape.

View JGC Holdings Corp Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

FR		Vinci SA PAR:DG	Add
IN		Larsen and Toubro Ltd F:LTO	Add
IN		Larsen & Toubro Ltd NSE:LT	Add
US		Quanta Services Inc NYSE:PWR	Add
CN	C	China State Construction Engineering Corp Ltd SSE:601668	Add
NL		Ferrovial SE AEX:FER	Add
ES		Ferrovial SA MAD:FER	Add
US		EMCOR Group Inc NYSE:EME	Add
CA		WSP Global Inc TSX:WSP	Add
CN		China Railway Group Ltd SSE:601390	Add

FR		Vinci SA PAR:DG	Select
IN		Larsen and Toubro Ltd F:LTO	Select
IN		Larsen & Toubro Ltd NSE:LT	Select
US		Quanta Services Inc NYSE:PWR	Select
CN	C	China State Construction Engineering Corp Ltd SSE:601668	Select
NL		Ferrovial SE AEX:FER	Select
ES		Ferrovial SA MAD:FER	Select
US		EMCOR Group Inc NYSE:EME	Select
CA		WSP Global Inc TSX:WSP	Select
CN		China Railway Group Ltd SSE:601390	Select

FR		Vinci SA PAR:DG	Add
IN		Larsen and Toubro Ltd F:LTO	Add
IN		Larsen & Toubro Ltd NSE:LT	Add
US		Quanta Services Inc NYSE:PWR	Add
CN	C	China State Construction Engineering Corp Ltd SSE:601668	Add
NL		Ferrovial SE AEX:FER	Add
ES		Ferrovial SA MAD:FER	Add
US		EMCOR Group Inc NYSE:EME	Add
CA		WSP Global Inc TSX:WSP	Add
CN		China Railway Group Ltd SSE:601390	Add

US	G	GE Vernova LLC NYSE:GEV	Add
NL	N	Nepi Rockcastle NV JSE:NRP	Add
US		Schlumberger NV NYSE:SLB	Add
US	B	Baker Hughes Co NASDAQ:BKR	Add
ID		Amman Mineral Internasional Tbk PT IDX:AMMN	Add
US	R	Reddit Inc NYSE:RDDT	Add
CH	G	Galderma Group AG SIX:GALD	Add
US		Halliburton Co NYSE:HAL	Add
LU		Tenaris SA MIL:TEN	Add
IN		Jio Financial Services Ltd NSE:JIOFIN	Add

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1963

vs

Nikkei 225

Stocks Performance
1963 vs Nikkei 225

Performance Gap
1963 vs Nikkei 225

Performance By Year
1963 vs Nikkei 225

Competitors Performance
JGC Holdings Corp vs Peers

JGC Holdings Corp
Glance View

Company

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1963 vs Nikkei 225

Stocks Performance 1963 vs Nikkei 225

Performance Gap 1963 vs Nikkei 225

Performance By Year 1963 vs Nikkei 225

Competitors Performance JGC Holdings Corp vs Peers

JGC Holdings Corp Glance View

Company

Help

Tools

Stocks

1963

vs

Nikkei 225

Stocks Performance
1963 vs Nikkei 225

Performance Gap
1963 vs Nikkei 225

Performance By Year
1963 vs Nikkei 225

Competitors Performance
JGC Holdings Corp vs Peers

JGC Holdings Corp
Glance View