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

INFRONEER Holdings, Inc.

JGC Holdings Corp.

SHO-BOND Holdings Co. Ltd.

EXEO Group, Inc.

Kajima Corp.

Kandenko Co., Ltd.

Kinden Corp.

Kyudenko Corp.

Shimizu Corp.

COMSYS Holdings Corp.

TAISEI Corp.

Why is Kandenko Co., Ltd. ?

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 1.75% and Operating profit at 10.95% over the last 5 years

Flat results in Dec 25

INVENTORY TURNOVER RATIO(HY) Lowest at 22.83 times
DEBTORS TURNOVER RATIO(HY) Lowest at 3.01 times
INTEREST(Q) Highest at JPY 82 MM

With ROE of 12.38%, it has a very attractive valuation with a 1.66 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 121.17%, its profits have risen by 69% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.1

Consistent Returns over the last 3 years

Along with generating 121.17% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kandenko Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Kandenko Co., Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Kandenko Co., Ltd.

121.17%

7.22

33.67%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.75%

EBIT Growth (5y)

10.95%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.74

Tax Ratio

29.05%

Dividend Payout Ratio

39.55%

Pledged Shares

Institutional Holding

0.16%

ROCE (avg)

14.44%

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

1.66

EV to EBIT

9.83

EV to EBITDA

8.42

EV to Capital Employed

1.74

EV to Sales

0.85

PEG Ratio

0.19

Dividend Yield

0.05%

ROCE (Latest)

17.72%

ROE (Latest)

12.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

10What is working for the Company

ROCE(HY)

Highest at 15.08%

OPERATING PROFIT(Q)

Highest at JPY 23,310 MM

RAW MATERIAL COST(Y)

Fallen by -18.72% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 13.64 %

PRE-TAX PROFIT(Q)

Highest at JPY 28,675 MM

NET PROFIT(Q)

Highest at JPY 19,479.92 MM

EPS(Q)

Highest at JPY 97.05

-13What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 22.83 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.01 times

INTEREST(Q)

Highest at JPY 82 MM

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

Operating Profit

Highest at JPY 23,310 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 13.64 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 28,675 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 19,479.92 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 97.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -18.72% (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 2,738 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 82 MM has Grown at 78.26%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 82 MM

in the last five periods and Increased by 78.26% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 22.83 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio