Kanaden Corp. (8081) 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

SATO SHO-JI CORP.

Shinsho Corp.

Fuji Corp. (Miyagi)

Sanyo Trading Co., Ltd.

Kanaden Corp.

KPP Group Holdings Co., Ltd.

Suzuden Corp.

Kamei Corp.

Tenpos Holdings Co., Ltd.

Onoken Co., Ltd.

Maruzen CHI Holdings Co., Ltd.

Why is Kanaden Corp. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 4.87% and Operating profit at 11.70% over the last 5 years

Flat results in Mar 26

INTEREST(HY) At JPY 12 MM has Grown at 71.43%

With ROE of 7.56%, it has a very attractive valuation with a 1.02 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 30.12%, its profits have risen by 22% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 30.12% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 81.96%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kanaden Corp. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Kanaden Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kanaden Corp.

-100.0%

1.93

29.28%

Japan Nikkei 225

81.96%

2.98

27.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.87%

EBIT Growth (5y)

11.70%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

2.58

Tax Ratio

32.39%

Dividend Payout Ratio

41.34%

Pledged Shares

Institutional Holding

0.09%

ROCE (avg)

12.59%

ROE (avg)

6.02%

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

1.02

EV to EBIT

6.73

EV to EBITDA

5.70

EV to Capital Employed

1.02

EV to Sales

0.23

PEG Ratio

0.48

Dividend Yield

ROCE (Latest)

15.21%

ROE (Latest)

7.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

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

11What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 15.59 times

RAW MATERIAL COST(Y)

Fallen by -10.34% (YoY

CASH AND EQV(HY)

Highest at JPY 40,044 MM

DEBT-EQUITY RATIO (HY)

Lowest at -47.05 %

NET SALES(Q)

Highest at JPY 47,380 MM

OPERATING PROFIT(Q)

Highest at JPY 3,041 MM

OPERATING PROFIT MARGIN(Q)

Highest at 6.42 %

PRE-TAX PROFIT(Q)

Highest at JPY 3,052 MM

NET PROFIT(Q)

Highest at JPY 2,059 MM

-8What is not working for the Company

INTEREST(HY)

At JPY 12 MM has Grown at 71.43%

Here's what is working for Kanaden Corp.

Inventory Turnover Ratio

Highest at 15.59 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at JPY 47,380 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 3,041 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 6.42 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 3,052 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 2,059 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Cash and Eqv

Highest at JPY 40,044 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -47.05 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -10.34% (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 Kanaden Corp.

Interest

At JPY 12 MM has Grown at 71.43%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)