Kinden Corp. (1944) 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

Kajima Corp.

INFRONEER Holdings, Inc.

Kandenko Co., Ltd.

SHO-BOND Holdings Co. Ltd.

EXEO Group, Inc.

Kinden Corp.

COMSYS Holdings Corp.

TAISEI Corp.

JGC Holdings Corp.

Shimizu Corp.

Kyudenko Corp.

Why is Kinden Corp. ?

Poor Management Efficiency with a low ROE of 6.20%

The company has been able to generate a Return on Equity (avg) of 6.20% signifying low profitability per unit of shareholders funds

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate 6.25% of over the last 5 years

ROCE(HY) Highest at 8.54%
RAW MATERIAL COST(Y) Fallen by -38.14% (YoY)
DEBTORS TURNOVER RATIO(HY) Highest at 3.73%

With ROE of 7.91%, it has a very attractive valuation with a 1.31 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 119.57%, its profits have risen by 41.9% ; the PEG ratio of the company is 0.4
At the current price, the company has a high dividend yield of 0

Consistent Returns over the last 3 years

Along with generating 119.57% returns in the last 1 year, the stock has outperformed 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 Kinden Corp. 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 Kinden Corp. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Kinden Corp.

119.57%

3.18

32.27%

Japan Nikkei 225

28.54%

1.11

25.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.77%

EBIT Growth (5y)

6.25%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

1.14

Tax Ratio

29.21%

Dividend Payout Ratio

38.09%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

12.13%

ROE (avg)

6.20%

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

1.31

EV to EBIT

9.88

EV to EBITDA

8.85

EV to Capital Employed

1.44

EV to Sales

0.85

PEG Ratio

0.39

Dividend Yield

0.03%

ROCE (Latest)

14.59%

ROE (Latest)

7.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

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

7What is working for the Company

ROCE(HY)

Highest at 8.54%

RAW MATERIAL COST(Y)

Fallen by -38.14% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.73%

PRE-TAX PROFIT(Q)

At JPY 9,180 MM has Grown at 116.92%

NET PROFIT(Q)

At JPY 4,863.03 MM has Grown at 117.94%

-11What is not working for the Company

INTEREST(Q)

At JPY 57 MM has Grown at 16.33%

DEBT-EQUITY RATIO (HY)

Highest at -26.75 %

Here's what is working for Kinden Corp.

Pre-Tax Profit

At JPY 9,180 MM has Grown at 116.92%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 4,863.03 MM has Grown at 117.94%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Debtors Turnover Ratio

Highest at 3.73%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -38.14% (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 2,387 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

Depreciation

At JPY 2,387 MM has Grown at 39.18%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (JPY MM)

Here's what is not working for Kinden Corp.

Interest

At JPY 57 MM has Grown at 16.33%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Debt-Equity Ratio

Highest at -26.75 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio