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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

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JAPAN FOUNDATION ENGINEERING CO., LTD.

Ohmoto Gumi Co., Ltd.

Kaneshita Construction 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

Poor long term growth as Net Sales has grown by an annual rate of -7.86% and Operating profit at -33.08% over the last 5 years

With a fall in Net Sales of -32.67%, the company declared Very Negative results in Jun 25

The company has declared negative results for the last 3 consecutive quarters
The company has declared negative results in Sep 24 after 4 consecutive negative quarters
PRE-TAX PROFIT(Q) At JPY -23 MM has Fallen at -133.09%
NET PROFIT(Q) At JPY -11 MM has Fallen at -122.34%
RAW MATERIAL COST(Y) Grown by 31.32% (YoY)

With ROE of 1.18%, it has a very attractive valuation with a 0.57 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 6.81%, its profits have fallen by -48.9%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kaneshita Construction Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kaneshita Construction Co., Ltd.

6.36%

-0.03

17.62%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.86%

EBIT Growth (5y)

-33.08%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.57

Sales to Capital Employed (avg)

0.55

Tax Ratio

22.30%

Dividend Payout Ratio

33.58%

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

0.57

EV to EBIT

-2.37

EV to EBITDA

-1.06

EV to Capital Employed

-0.02

EV to Sales

-0.02

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

1.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at JPY 21,904 MM

DEBT-EQUITY RATIO (HY)

Lowest at -61.26 %

-28What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY -23 MM has Fallen at -133.09%

NET PROFIT(Q)

At JPY -11 MM has Fallen at -122.34%

RAW MATERIAL COST(Y)

Grown by 31.32% (YoY

NET SALES(Q)

Lowest at JPY 1,548 MM

OPERATING PROFIT(Q)

Lowest at JPY -121 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -7.82 %

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

Cash and Eqv

Highest at JPY 21,904 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -61.26 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Net Sales

At JPY 1,548 MM has Fallen at -25.21%

over average net sales of the previous four periods of JPY 2,069.75 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (JPY MM)

Pre-Tax Profit

At JPY -23 MM has Fallen at -133.09%

over average net sales of the previous four periods of JPY 69.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Net Profit

At JPY -11 MM has Fallen at -122.34%

over average net sales of the previous four periods of JPY 49.25 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Net Sales

Lowest at JPY 1,548 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY -121 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at -7.82 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 31.32% (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