Kanematsu Engineering Co., Ltd. (6402) 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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Kanematsu Engineering Co., Ltd.

Why is Kanematsu Engineering Co., Ltd. ?

Weak Long Term Fundamental Strength with a 3.71% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate 3.71% of over the last 5 years

Negative results in Jun 26

INTEREST(Q) Highest at JPY 4.85 MM
NET PROFIT(Q) Lowest at JPY 200.5 MM
EPS(Q) Lowest at JPY 40.44

With ROE of 11.44%, it has a very attractive valuation with a 0.95 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 4.92%, its profits have risen by 5.5% ; the PEG ratio of the company is 1.5

Underperformed the market in the last 1 year

The stock has generated a return of 4.92% 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 hold?

Overall Portfolio exposure to Kanematsu Engineering Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Kanematsu Engineering Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kanematsu Engineering Co., Ltd.

-100.0%

1.14

31.47%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.88%

EBIT Growth (5y)

3.71%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.28

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

1.52

Tax Ratio

24.88%

Dividend Payout Ratio

34.78%

Pledged Shares

Institutional Holding

ROCE (avg)

13.80%

ROE (avg)

10.47%

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

0.95

EV to EBIT

5.32

EV to EBITDA

4.06

EV to Capital Employed

0.94

EV to Sales

0.48

PEG Ratio

1.50

Dividend Yield

ROCE (Latest)

17.76%

ROE (Latest)

11.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

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

4What is working for the Company

ROCE(HY)

Highest at 13.7%

RAW MATERIAL COST(Y)

Fallen by -5.35% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.68 times

-13What is not working for the Company

INTEREST(Q)

Highest at JPY 4.85 MM

NET PROFIT(Q)

Lowest at JPY 200.5 MM

EPS(Q)

Lowest at JPY 40.44

Here's what is working for Kanematsu Engineering Co., Ltd.

Debtors Turnover Ratio

Highest at 5.68 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.35% (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

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

Interest

At JPY 4.85 MM has Grown at 16.31%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 4.85 MM

in the last five periods and Increased by 16.31% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

Lowest at JPY 200.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 40.44

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)