Kandenko Co., Ltd. (1942) 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

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Why is Kandenko Co., Ltd. ?

Weak Long Term Fundamental Strength with a 17.72% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 4.72% and Operating profit at 17.72% over the last 5 years

Flat results in Jun 26

INTEREST(HY) At JPY 212 MM has Grown at 53.62%
NET SALES(Q) Lowest at JPY 158,043 MM

With ROE of 15.16%, it has a fair valuation with a 3.20 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 41.72%, its profits have risen by 44.3% ; 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 41.72% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 59.79%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kandenko Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Kandenko Co., Ltd.

41.72%

4.98

42.55%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.72%

EBIT Growth (5y)

17.72%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.75

Tax Ratio

28.15%

Dividend Payout Ratio

39.77%

Pledged Shares

Institutional Holding

0.16%

ROCE (avg)

16.93%

ROE (avg)

8.76%

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

3.20

EV to EBIT

16.53

EV to EBITDA

14.48

EV to Capital Employed

3.46

EV to Sales

1.70

PEG Ratio

0.48

Dividend Yield

ROCE (Latest)

20.93%

ROE (Latest)

15.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

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

6What is working for the Company

ROCE(HY)

Highest at 16.88%

RAW MATERIAL COST(Y)

Fallen by -20.68% (YoY

CASH AND EQV(HY)

Highest at JPY 179,179 MM

DEBT-EQUITY RATIO (HY)

Lowest at -22.71 %

OPERATING PROFIT MARGIN(Q)

Highest at 14.39 %

-9What is not working for the Company

INTEREST(HY)

At JPY 212 MM has Grown at 53.62%

NET SALES(Q)

Lowest at JPY 158,043 MM

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

Operating Profit Margin

Highest at 14.39 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at JPY 179,179 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -22.71 %

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 -20.68% (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

Depreciation

Highest at JPY 3,017 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Here's what is not working for Kandenko Co., Ltd.

Interest

At JPY 212 MM has Grown at 53.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Sales

Lowest at JPY 158,043 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)