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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Kandenko Co., Ltd.

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EXEO Group, Inc.

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 4.72% and Operating profit at 17.72% over the last 5 years

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 19,053.1
INVENTORY TURNOVER RATIO(HY) Lowest at 27.93 times
INTEREST(Q) Highest at JPY 145 MM

With ROE of 15.16%, it has a fair valuation with a 3.26 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 102.90%, 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

Consistent Returns over the last 3 years

Along with generating 102.90% 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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Kandenko Co., Ltd.

102.9%

6.91

40.68%

Japan Nikkei 225

85.83%

3.09

27.80%

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)

1.74

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

3.26

EV to EBIT

16.84

EV to EBITDA

14.76

EV to Capital Employed

3.53

EV to Sales

1.73

PEG Ratio

0.48

Dividend Yield

ROCE (Latest)

20.93%

ROE (Latest)

15.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Bullish

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

10What is working for the Company

ROCE(HY)

Highest at 16.76%

DIVIDEND PER SHARE(HY)

Highest at JPY 2.76

OPERATING PROFIT(Q)

Highest at JPY 27,627 MM

RAW MATERIAL COST(Y)

Fallen by -24.78% (YoY

NET PROFIT(9M)

Higher at JPY 51,175.64 MM

CASH AND EQV(HY)

Highest at JPY 157,418 MM

NET SALES(Q)

Highest at JPY 230,441 MM

-14What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 19,053.1

INVENTORY TURNOVER RATIO(HY)

Lowest at 27.93 times

INTEREST(Q)

Highest at JPY 145 MM

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

Operating Profit

Highest at JPY 27,627 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)

Dividend per share

Highest at JPY 2.76 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Net Sales

Highest at JPY 230,441 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 157,418 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Net Profit

Higher at JPY 51,175.64 MM

than preceding 12 month period ended Mar 2026

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (JPY MM)

Raw Material Cost

Fallen by -24.78% (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 2,959 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 145 MM has Grown at 76.83%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 19,053.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at JPY 145 MM

in the last five periods and Increased by 76.83% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 27.93 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio