DKK Co., Ltd. (6706) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DAI-DAN Co., Ltd.

Luckland Co., Ltd.

Techno Ryowa Ltd.

ASAHI KOGYOSHA CO., LTD.

DKK Co., Ltd.

Fudo Tetra Corp.

Daiichi Kensetsu Corp.

NIPPON RIETEC CO., LTD.

Hokuriku Electrical Construction Co., Ltd.

Meiko Construction Co., Ltd.

Tekken Corp.

Why is DKK Co., Ltd. ?

Poor Management Efficiency with a low ROE of 2.16%

The company has been able to generate a Return on Equity (avg) of 2.16% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -6.26% and Operating profit at -18.49% over the last 5 years

Positive results in Jun 25

NET PROFIT(HY) At JPY 1,642 MM has Grown at 81.64%
ROCE(HY) Highest at 2.16%
RAW MATERIAL COST(Y) Fallen by -1.97% (YoY)

With ROE of 6.00%, it has a very attractive valuation with a 0.61 Price to Book Value

Over the past year, while the stock has generated a return of 56.90%, its profits have risen by 1906.4% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0

Market Beating Performance

The stock has generated a return of 56.90% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 28.54%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to DKK Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is DKK Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

DKK Co., Ltd.

56.9%

0.65

35.71%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.26%

EBIT Growth (5y)

-18.49%

EBIT to Interest (avg)

-3.52

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

0.73

Tax Ratio

52.30%

Dividend Payout Ratio

96.02%

Pledged Shares

Institutional Holding

ROCE (avg)

1.86%

ROE (avg)

2.16%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.61

EV to EBIT

12.38

EV to EBITDA

6.21

EV to Capital Employed

0.45

EV to Sales

0.36

PEG Ratio

0.01

Dividend Yield

0.03%

ROCE (Latest)

3.62%

ROE (Latest)

6.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

NET PROFIT(HY)

At JPY 1,642 MM has Grown at 81.64%

ROCE(HY)

Highest at 2.16%

RAW MATERIAL COST(Y)

Fallen by -1.97% (YoY

-15What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.34%

CASH AND EQV(HY)

Lowest at JPY 34,277 MM

INTEREST(Q)

Highest at JPY 21 MM

OPERATING PROFIT(Q)

Lowest at JPY -260 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -4.35 %

PRE-TAX PROFIT(Q)

Lowest at JPY -325 MM

Here's what is working for DKK Co., Ltd.

Net Profit

At JPY 1,642 MM has Grown at 81.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -1.97% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for DKK Co., Ltd.

Inventory Turnover Ratio

Lowest at 3.34% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 21 MM

in the last five periods and Increased by 5% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Operating Profit

Lowest at JPY -260 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -4.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY -325 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Cash and Eqv

Lowest at JPY 34,277 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents