Kanagawa Chuo Kotsu Co., Ltd. (9081) 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

Nagase Brothers, Inc.

Azoom Co. Ltd.

Curves Holdings Co., Ltd.

Kakaku.com, Inc.

Kanagawa Chuo Kotsu Co., Ltd.

Riso Kyoiku Co., Ltd.

Tosho Co., Ltd.

Adventure, Inc.

Park24 Co., Ltd.

Benesse Holdings, Inc.

H.I.S. Co. Ltd.

Why is Kanagawa Chuo Kotsu Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.77%

The company has been able to generate a Return on Capital Employed (avg) of 3.77% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 0.95% and Operating profit at 6.75% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 3.77% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 0.95% and Operating profit at 6.75% over the last 5 years

The company declared very negative results in Mar'25 after negative results in Dec'24

NET PROFIT(HY) At JPY 1,498.41 MM has Grown at -65.86%
INTEREST(HY) At JPY 345 MM has Grown at 44.35%
INVENTORY TURNOVER RATIO(HY) Lowest at 6.79%

With ROCE of 6.48%, it has a very attractive valuation with a 0.90 Enterprise value to Capital Employed

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 -2.37%, its profits have risen by 9.6% ; the PEG ratio of the company is 0.8
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 Kanagawa Chuo Kotsu Co., Ltd. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

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

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

Is Kanagawa Chuo Kotsu Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kanagawa Chuo Kotsu Co., Ltd.

-2.37%

1.01

22.62%

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)

0.95%

EBIT Growth (5y)

6.75%

EBIT to Interest (avg)

7.15

Debt to EBITDA (avg)

13.86

Net Debt to Equity (avg)

0.98

Sales to Capital Employed (avg)

1.05

Tax Ratio

13.37%

Dividend Payout Ratio

21.73%

Pledged Shares

Institutional Holding

ROCE (avg)

3.77%

ROE (avg)

6.51%

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

0.79

EV to EBIT

13.82

EV to EBITDA

10.21

EV to Capital Employed

0.90

EV to Sales

0.86

PEG Ratio

0.78

Dividend Yield

0.01%

ROCE (Latest)

6.48%

ROE (Latest)

10.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

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

2What is working for the Company

NET SALES(Q)

Highest at JPY 31,500 MM

OPERATING PROFIT(Q)

Highest at JPY 4,154 MM

-18What is not working for the Company

NET PROFIT(HY)

At JPY 1,498.41 MM has Grown at -65.86%

INTEREST(HY)

At JPY 345 MM has Grown at 44.35%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.79%

RAW MATERIAL COST(Y)

Grown by 6.01% (YoY

Here's what is working for Kanagawa Chuo Kotsu Co., Ltd.

Net Sales

Highest at JPY 31,500 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 4,154 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Here's what is not working for Kanagawa Chuo Kotsu Co., Ltd.

Net Profit

At JPY 1,498.41 MM has Grown at -65.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 345 MM has Grown at 44.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 6.79% 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

Raw Material Cost

Grown by 6.01% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales