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

Nakano Corp.

Ichiken Co., Ltd.

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Ohmoto Gumi Co., Ltd.

Sanyo Engineering & Construction, Inc.

Fujita Engineering Co., Ltd.

DN Holdings Co., Ltd.

Kunimine Industries Co., Ltd.

Kaneshita Construction Co., Ltd.

IDEA Consultants, Inc.

JAPAN FOUNDATION ENGINEERING 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

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 1.40%

Poor long term growth as Net Sales has grown by an annual rate of 0.12% and Operating profit at -26.61% over the last 5 years
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 0.12% and Operating profit at -26.61% over the last 5 years

With a growth in Net Profit of 28.1%, the company declared Very Positive results in Jun 26

The company has declared positive results for the last 3 consecutive quarters
NET SALES(HY) At JPY 4,849 MM has Grown at 26.05%
PRE-TAX PROFIT(Q) Highest at JPY 233 MM
RAW MATERIAL COST(Y) Fallen by -99.82% (YoY)

With ROE of 1.22%, it has a attractive valuation with a 0.60 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 17.28%, its profits have risen by 12.5% ; the PEG ratio of the company is 3.9
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.

17.28%

0.41

29.38%

Japan Nikkei 225

58.07%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.12%

EBIT Growth (5y)

-26.61%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.57

Sales to Capital Employed (avg)

0.52

Tax Ratio

32.31%

Dividend Payout Ratio

44.69%

Pledged Shares

Institutional Holding

ROCE (avg)

1.32%

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

0.60

EV to EBIT

18.09

EV to EBITDA

10.36

EV to Capital Employed

0.19

EV to Sales

0.20

PEG Ratio

3.90

Dividend Yield

0.02%

ROCE (Latest)

1.03%

ROE (Latest)

1.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

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

24What is working for the Company

NET SALES(HY)

At JPY 4,849 MM has Grown at 26.05%

PRE-TAX PROFIT(Q)

Highest at JPY 233 MM

RAW MATERIAL COST(Y)

Fallen by -99.82% (YoY

NET PROFIT(Q)

Highest at JPY 162 MM

EPS(Q)

Highest at JPY 73.64

-1What is not working for the Company

NET SALES(Q)

At JPY 2,150 MM has Fallen at -6.9%

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

Pre-Tax Profit

Highest at JPY 233 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Pre-Tax Profit

At JPY 233 MM has Grown at 159.61%

over average net sales of the previous four periods of JPY 89.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 162 MM has Grown at 169.99%

over average net sales of the previous four periods of JPY 60 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Profit

Highest at JPY 162 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 73.64

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -99.82% (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 Kaneshita Construction Co., Ltd.

Net Sales

At JPY 2,150 MM has Fallen at -6.9%

over average net sales of the previous four periods of JPY 2,309.25 MM

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)