Kanamic Network Co., LTD. (3939) 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

Kanamic Network Co., LTD.

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i-mobile Co., Ltd.

Akatsuki, Inc.

eBASE Co., Ltd.

Finatext Holdings Ltd.

PCA Corp.

PLAID, Inc. (Japan)

Sourcenext Corp.

kaonavi, Inc.

Why is Kanamic Network Co., LTD. ?

High Management Efficiency with a high ROE of 26.36%

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

Healthy long term growth as Net Sales has grown by an annual rate of 23.23% and Operating profit at 17.55%

With a growth in Net Profit of 19.3%, the company declared Very Positive results in Mar 26

The company has declared positive results for the last 3 consecutive quarters
ROCE(HY) Highest at 27.87%
INTEREST COVERAGE RATIO(Q) Highest at 47,966.62
PRE-TAX PROFIT(Q) Highest at JPY 547.46 MM

With ROE of 25.48%, it has a attractive valuation with a 5.39 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 21.73%, its profits have risen by 15.8% ; the PEG ratio of the company is 1.3

Real-Time Research Report

Verdict Report

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.

19.75%

-0.29

33.20%

Japan Nikkei 225

88.41%

3.25

27.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.23%

EBIT Growth (5y)

17.55%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

1.05

Tax Ratio

31.58%

Dividend Payout Ratio

32.02%

Pledged Shares

Institutional Holding

ROCE (avg)

170.61%

ROE (avg)

26.36%

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

5.39

EV to EBIT

13.21

EV to EBITDA

10.55

EV to Capital Employed

10.54

EV to Sales

3.96

PEG Ratio

1.34

Dividend Yield

ROCE (Latest)

79.83%

ROE (Latest)

25.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

16What is working for the Company

ROCE(HY)

Highest at 27.87%

INTEREST COVERAGE RATIO(Q)

Highest at 47,966.62

PRE-TAX PROFIT(Q)

Highest at JPY 547.46 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 427.92 times

NET SALES(Q)

Highest at JPY 1,656.12 MM

OPERATING PROFIT(Q)

Highest at JPY 650.91 MM

OPERATING PROFIT MARGIN(Q)

Highest at 39.3 %

NET PROFIT(Q)

Highest at JPY 364.56 MM

EPS(Q)

Highest at JPY 7.68

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 6.77% (YoY

Here's what is working for Kanamic Network Co., LTD.

Interest Coverage Ratio

Highest at 47,966.62

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

Highest at JPY 547.46 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 Sales

Highest at JPY 1,656.12 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Sales

At JPY 1,656.12 MM has Grown at 16.83%

over average net sales of the previous four periods of JPY 1,417.5 MM

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 650.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 39.3 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at JPY 364.56 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 7.68

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Inventory Turnover Ratio

Highest at 427.92 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Kanamic Network Co., LTD.

Raw Material Cost

Grown by 6.77% (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