Why is Kanamic Network Co., LTD. ?
1
High Management Efficiency with a high ROE of 26.36%
2
Company has very low debt and has enough cash to service the debt requirements
3
Healthy long term growth as Net Sales has grown by an annual rate of 24.27% and Operating profit at 21.61%
4
With a growth in Operating Profit of 1.42%, the company declared Very Positive results in Dec 25
- INTEREST COVERAGE RATIO(Q) Highest at 41,387.14
- PRE-TAX PROFIT(Q) Highest at JPY 462.54 MM
- RAW MATERIAL COST(Y) Fallen by -5.84% (YoY)
5
With ROE of 26.00%, it has a attractive valuation with a 5.00 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 17.67%, its profits have risen by 26.9% ; the PEG ratio of the company is 0.7
How much should you buy?
- Overall Portfolio exposure to Kanamic Network Co., LTD. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Kanamic Network Co., LTD. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Kanamic Network Co., LTD.
17.67%
-0.21
34.12%
Japan Nikkei 225
36.73%
1.30
28.24%
Quality key factors
Factor
Value
Sales Growth (5y)
24.27%
EBIT Growth (5y)
21.61%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.54
Sales to Capital Employed (avg)
1.01
Tax Ratio
31.58%
Dividend Payout Ratio
32.02%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
170.61%
ROE (avg)
26.36%
Valuation Key Factors 
Factor
Value
P/E Ratio
19
Industry P/E
Price to Book Value
5.00
EV to EBIT
11.78
EV to EBITDA
9.44
EV to Capital Employed
9.68
EV to Sales
3.46
PEG Ratio
0.71
Dividend Yield
NA
ROCE (Latest)
82.16%
ROE (Latest)
26.00%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Movement
9What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 41,387.14
PRE-TAX PROFIT(Q)
Highest at JPY 462.54 MM
RAW MATERIAL COST(Y)
Fallen by -5.84% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -53.08 %
DEBTORS TURNOVER RATIO(HY)
Highest at 25.49 times
OPERATING PROFIT(Q)
Highest at JPY 566.59 MM
OPERATING PROFIT MARGIN(Q)
Highest at 38.32 %
-2What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Kanamic Network Co., LTD.
Interest Coverage Ratio
Highest at 41,387.14
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
Highest at JPY 462.54 MM and Grown
In each period in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (JPY MM)
Operating Profit
Highest at JPY 566.59 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 38.32 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Debt-Equity Ratio
Lowest at -53.08 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 25.49 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -5.84% (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






