Kensoh Co., Ltd. (7939) 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

Eole, Inc.

Lovable Marketing Group, Inc.

Kensoh Co., Ltd.

Nissen, Inc.

Medical Net, Inc.

Rentracks Co., Ltd.

eMnet Japan Co. Ltd.

Axel Mark, Inc.

Aidma Marketing Communication Corp.

Gendai Agency, Inc.

Allied Architects, Inc.

Why is Kensoh Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 3.47% and Operating profit at 1.25% over the last 5 years

With a growth in Net Profit of 35.83%, the company declared Very Positive results in Mar 26

DEBT-EQUITY RATIO (HY) Lowest at 19.65 %
INTEREST COVERAGE RATIO(Q) Highest at 5,365.66
RAW MATERIAL COST(Y) Fallen by -3.1% (YoY)

With ROCE of 5.80%, it has a very expensive valuation with a 0.82 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 10.34%, its profits have fallen by -10.2%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 10.34% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 85.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kensoh Co., Ltd. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

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

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

Is Kensoh Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kensoh Co., Ltd.

10.34%

0.56

19.31%

Japan Nikkei 225

85.83%

3.09

27.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.47%

EBIT Growth (5y)

1.25%

EBIT to Interest (avg)

29.80

Debt to EBITDA (avg)

1.66

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

1.28

Tax Ratio

32.22%

Dividend Payout Ratio

45.34%

Pledged Shares

Institutional Holding

ROCE (avg)

7.42%

ROE (avg)

6.36%

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

0.78

EV to EBIT

14.08

EV to EBITDA

8.68

EV to Capital Employed

0.82

EV to Sales

0.52

PEG Ratio

Dividend Yield

ROCE (Latest)

5.80%

ROE (Latest)

5.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Mildly Bearish

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

13What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 19.65 %

INTEREST COVERAGE RATIO(Q)

Highest at 5,365.66

RAW MATERIAL COST(Y)

Fallen by -3.1% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 3.88

NET SALES(Q)

Highest at JPY 1,887.83 MM

OPERATING PROFIT(Q)

Highest at JPY 192.84 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.22 %

PRE-TAX PROFIT(Q)

Highest at JPY 152.03 MM

NET PROFIT(Q)

Highest at JPY 119.13 MM

EPS(Q)

Highest at JPY 31.5

-5What is not working for the Company

INTEREST(Q)

Highest at JPY 3.59 MM

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

Interest Coverage Ratio

Highest at 5,365.66

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 19.65 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Net Sales

Highest at JPY 1,887.83 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 192.84 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 10.22 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 152.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 119.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 31.5

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Dividend per share

Highest at JPY 3.88

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by -3.1% (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 Kensoh Co., Ltd.

Interest

At JPY 3.59 MM has Grown at 16.57%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest

Highest at JPY 3.59 MM

in the last five periods and Increased by 16.57% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)