Kaneshita Construction Co., Ltd. (1897) 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

Ichiken Co., Ltd.

Kunimine Industries Co., Ltd.

IDEA Consultants, Inc.

Kaneshita Construction Co., Ltd.

Hokkai Electrical Construction Co., Inc.

Nakano Corp.

Sanyo Engineering & Construction, Inc.

Fujita Engineering Co., Ltd.

JAPAN FOUNDATION ENGINEERING CO., LTD.

Ohmoto Gumi Co., Ltd.

DN Holdings Co., Ltd.

Why is Kaneshita Construction Co., Ltd. ?

Poor Management Efficiency with a low ROE of 1.40%

The company has been able to generate a Return on Equity (avg) of 1.40% signifying low profitability per unit of shareholders funds

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 -4.21% and Operating profit at -31.21% over the last 5 years

With a growth in Operating Profit of 9.55%, the company declared Very Positive results in Dec 25

The company has declared positive results in Jan 70 after 3 consecutive negative quarters
PRE-TAX PROFIT(Q) At JPY 180 MM has Grown at 172.73%
CASH AND EQV(HY) Highest at JPY 20,118 MM
NET SALES(Q) Highest at JPY 2,927 MM

With ROE of 1.25%, it has a very expensive valuation with a 0.66 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 24.82%, its profits have fallen by -27%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kaneshita Construction 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 Kaneshita Construction Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kaneshita Construction Co., Ltd.

24.82%

0.89

19.04%

Japan Nikkei 225

66.43%

2.73

25.54%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.21%

EBIT Growth (5y)

-31.21%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.57

Sales to Capital Employed (avg)

0.53

Tax Ratio

22.30%

Dividend Payout Ratio

44.69%

Pledged Shares

Institutional Holding

ROCE (avg)

2.36%

ROE (avg)

1.40%

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

0.66

EV to EBIT

33.44

EV to EBITDA

18.89

EV to Capital Employed

0.34

EV to Sales

0.38

PEG Ratio

Dividend Yield

0.01%

ROCE (Latest)

1.01%

ROE (Latest)

1.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

No Trend

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

16What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 180 MM has Grown at 172.73%

CASH AND EQV(HY)

Highest at JPY 20,118 MM

NET SALES(Q)

Highest at JPY 2,927 MM

NET PROFIT(Q)

Highest at JPY 123 MM

EPS(Q)

Highest at JPY 58.35

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 85.69%

RAW MATERIAL COST(Y)

Grown by 13.16% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 22.38 times

Here's what is working for Kaneshita Construction Co., Ltd.

Net Sales

At JPY 2,927 MM has Grown at 47.09%

over average net sales of the previous four periods of JPY 1,990 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 180 MM has Grown at 172.73%

over average net sales of the previous four periods of JPY 66 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 123 MM has Grown at 163.1%

over average net sales of the previous four periods of JPY 46.75 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

Highest at JPY 2,927 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Net Profit

Highest at JPY 123 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 58.35

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Cash and Eqv

Highest at JPY 20,118 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Inventory Turnover Ratio

Lowest at 22.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend Payout Ratio

Lowest at 85.69%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 13.16% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales