Kanmonkai Co., Ltd. (3372) 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

Global-Dining, Inc.

ASMO Corp.

Ginza Renoir Co., Ltd.

Kanmonkai Co., Ltd.

Pepper Food Service Co., Ltd.

Tokyo Ichiban Foods Co., Ltd.

Shokubun Co., Ltd.

Life Foods Co., Ltd.

Hamayuu Co., Ltd.

JB Eleven Co., Ltd.

j-Group Holdings Corp.

Why is Kanmonkai Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 3.31% and Operating profit at 30.39% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 9.30% signifying low profitability per unit of total capital (equity and debt)

Negative results in Dec 25

NET PROFIT(HY) At JPY 39.74 MM has Grown at -71.57%
INTEREST(Q) At JPY 4.61 MM has Grown at 10.68%
RAW MATERIAL COST(Y) Grown by 6.5% (YoY)

With ROCE of 24.90%, it has a expensive valuation with a 2.56 Enterprise value to Capital Employed

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 -0.87%, its profits have risen by 32% ; the PEG ratio of the company is 0.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.87% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kanmonkai Co., Ltd. should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

Is Kanmonkai Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kanmonkai Co., Ltd.

-100.0%

-0.82

21.15%

Japan Nikkei 225

38.94%

1.38

28.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.31%

EBIT Growth (5y)

30.39%

EBIT to Interest (avg)

-2.92

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.73

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.30%

ROE (avg)

17.77%

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

2.59

EV to EBIT

10.29

EV to EBITDA

8.02

EV to Capital Employed

2.56

EV to Sales

0.64

PEG Ratio

0.27

Dividend Yield

ROCE (Latest)

24.90%

ROE (Latest)

30.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

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

INVENTORY TURNOVER RATIO(HY)

Highest at 2.72 times

-13What is not working for the Company

NET PROFIT(HY)

At JPY 39.74 MM has Grown at -71.57%

INTEREST(Q)

At JPY 4.61 MM has Grown at 10.68%

RAW MATERIAL COST(Y)

Grown by 6.5% (YoY

CASH AND EQV(HY)

Lowest at JPY 1,391.56 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.22 times

Here's what is working for Kanmonkai Co., Ltd.

Inventory Turnover Ratio

Highest at 2.72 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

Depreciation

Highest at JPY 24.7 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 Kanmonkai Co., Ltd.

Net Profit

At JPY 39.74 MM has Grown at -71.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

At JPY 4.61 MM has Grown at 10.68%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 1,391.56 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 7.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 6.5% (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