ScoreWhy is Kanmonkai Co., Ltd. ?
1
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 12.09% and Operating profit at 18.77% over the last 5 years
- The company is Net-Debt Free
- 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)
2
The company has declared Negative results for the last 3 consecutive quarters
- ROCE(HY) Lowest at 9.17%
- CASH AND EQV(HY) Lowest at JPY 1,470.63 MM
- NET PROFIT(Q) Fallen at -44.37%
3
With ROCE of 8.40%, it has a very attractive valuation with a 2.11 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 -8.75%, its profits have risen by 36.8% ; the PEG ratio of the company is 0.3
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -8.75% 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 ReportHow 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%
-1.36
15.17%
Japan Nikkei 225
85.83%
3.09
27.80%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.09%
EBIT Growth (5y)
18.77%
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)
1.82
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
9.30%
ROE (avg)
17.77%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
2.57
EV to EBIT
25.09
EV to EBITDA
15.43
EV to Capital Employed
2.11
EV to Sales
0.71
PEG Ratio
0.32
Dividend Yield
NA
ROCE (Latest)
8.40%
ROE (Latest)
22.10%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -0.77% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at -2.44 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.32 times
OPERATING PROFIT MARGIN(Q)
Highest at 15.06 %
-10What is not working for the Company
ROCE(HY)
Lowest at 9.17%
CASH AND EQV(HY)
Lowest at JPY 1,470.63 MM
NET PROFIT(Q)
Fallen at -44.37%
Here's what is working for Kanmonkai Co., Ltd.
Operating Profit Margin
Highest at 15.06 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Debt-Equity Ratio
Lowest at -2.44 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.32 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -0.77% (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 26.59 MM
in the last five periodsMOJO 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
Fallen at -44.37%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (JPY MM)
Cash and Eqv
Lowest at JPY 1,470.63 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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