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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

ASAHI KOGYOSHA CO., LTD.

DAI-DAN Co., Ltd.

Luckland Co., Ltd.

Fudo Tetra Corp.

DKK Co., Ltd.

Daiichi Kensetsu Corp.

Hokuriku Electrical Construction Co., Ltd.

NIPPON RIETEC CO., LTD.

Techno Ryowa Ltd.

Tekken Corp.

Meiko Construction Co., Ltd.

Why is DKK Co., Ltd. ?

Poor Management Efficiency with a low ROE of 2.20%

The company has been able to generate a Return on Equity (avg) of 2.20% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 2.20%

Poor long term growth as Net Sales has grown by an annual rate of -3.57% and Operating profit at -4.35% over the last 5 years
The company has been able to generate a Return on Equity (avg) of 2.20% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -3.57% and Operating profit at -4.35% over the last 5 years

The company has declared positive results in Jun'2026 after 2 consecutive negative quarters

ROCE(HY) Highest at 9.44%
PRE-TAX PROFIT(Q) Highest at JPY 2,016 MM
NET PROFIT(Q) Highest at JPY 1,320.88 MM

With ROE of 7.15%, it has a very attractive valuation with a 0.89 Price to Book Value

Over the past year, while the stock has generated a return of 48.15%, its profits have risen by 74.4% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0

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, Medium Return

Absolute

Risk Adjusted

Volatility

DKK Co., Ltd.

53.68%

1.59

35.72%

Japan Nikkei 225

57.85%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.57%

EBIT Growth (5y)

-4.35%

EBIT to Interest (avg)

-12.10

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

0.77

Tax Ratio

37.85%

Dividend Payout Ratio

46.38%

Pledged Shares

Institutional Holding

ROCE (avg)

1.56%

ROE (avg)

2.20%

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

0.89

EV to EBIT

14.56

EV to EBITDA

10.19

EV to Capital Employed

0.87

EV to Sales

0.75

PEG Ratio

0.17

Dividend Yield

ROCE (Latest)

5.98%

ROE (Latest)

7.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

18What is working for the Company

ROCE(HY)

Highest at 9.44%

PRE-TAX PROFIT(Q)

Highest at JPY 2,016 MM

NET PROFIT(Q)

Highest at JPY 1,320.88 MM

RAW MATERIAL COST(Y)

Fallen by -3.97% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.61 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.87 times

NET SALES(Q)

At JPY 7,483 MM has Grown at 25.07%

EPS(Q)

Highest at JPY 149.92

-9What is not working for the Company

INTEREST(HY)

At JPY 53 MM has Grown at 29.27%

CASH AND EQV(HY)

Lowest at JPY 27,954 MM

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

Pre-Tax Profit

At JPY 2,016 MM has Grown at 720.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,320.88 MM has Grown at 723.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

Highest at JPY 2,016 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 1,320.88 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 7,483 MM has Grown at 25.07%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

EPS

Highest at JPY 149.92

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 3.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 3.87 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.97% (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.

Interest

At JPY 53 MM has Grown at 29.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 27,954 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents