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

Mitsubishi Motors Corp.

Yamaha Motor Co., Ltd.

Mazda Motor Corp.

Hino Motors, Ltd.

Nissan Shatai Co., Ltd.

Isuzu Motors Ltd.

MORITA HOLDINGS CORP.

Kanematsu Engineering Co., Ltd.

Daytona Corp.

Subaru Corp.

Shimano, Inc.

Why is Kanematsu Engineering Co., Ltd. ?

High Management Efficiency with a high ROE of 10.47%

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

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

Flat results in Mar 26

NET SALES(Q) At JPY 3,137.62 MM has Fallen at -9.12%
PRE-TAX PROFIT(Q) At JPY 172.76 MM has Fallen at -45.55%
INTEREST(Q) Highest at JPY 4.17 MM

With ROE of 11.44%, it has a very attractive valuation with a 1.43 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 16.12%, its profits have risen by 5.5% ; the PEG ratio of the company is 2.3

Underperformed the market in the last 1 year

The stock has generated a return of 16.12% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kanematsu Engineering Co., Ltd.

16.12%

0.45

38.60%

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)

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)

1.51

Tax Ratio

29.59%

Dividend Payout Ratio

34.87%

Pledged Shares

Institutional Holding

ROCE (avg)

14.71%

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

1.43

EV to EBIT

8.30

EV to EBITDA

6.33

EV to Capital Employed

1.47

EV to Sales

0.75

PEG Ratio

2.26

Dividend Yield

ROCE (Latest)

17.76%

ROE (Latest)

11.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

11What is working for the Company

NET PROFIT(HY)

At JPY 507.03 MM has Grown at 90.16%

ROCE(HY)

Highest at 13.79%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.04 times

RAW MATERIAL COST(Y)

Fallen by -12.48% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 5.51

-15What is not working for the Company

NET SALES(Q)

At JPY 3,137.62 MM has Fallen at -9.12%

PRE-TAX PROFIT(Q)

At JPY 172.76 MM has Fallen at -45.55%

INTEREST(Q)

Highest at JPY 4.17 MM

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

Net Profit

At JPY 507.03 MM has Grown at 90.16%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 4.04 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at JPY 5.51

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -12.48% (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 105 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 Kanematsu Engineering Co., Ltd.

Net Sales

At JPY 3,137.62 MM has Fallen at -9.12%

over average net sales of the previous four periods of JPY 3,452.53 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Interest

At JPY 4.17 MM has Grown at 37.14%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Pre-Tax Profit

At JPY 172.76 MM has Fallen at -45.55%

over average net sales of the previous four periods of JPY 317.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

Highest at JPY 4.17 MM

in the last five periods and Increased by 37.14% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)