Kintetsu Group Holdings Co., Ltd. (9041) 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

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Sotetsu Holdings, Inc.

Tokyu Corp.

Kintetsu Group Holdings Co., Ltd.

Nankai Electric Railway Co., Ltd.

Nagoya Railroad Co., Ltd.

Why is Kintetsu Group Holdings Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.19%

The company has been able to generate a Return on Capital Employed (avg) of 3.19% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 28.17% of 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 3.19% signifying low profitability per unit of total capital (equity and debt)

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At JPY 7,836 MM has Grown at 26.86%
INVENTORY TURNOVER RATIO(HY) Lowest at 6.12 times
INTEREST COVERAGE RATIO(Q) Lowest at 1,052.16

With ROCE of 5.40%, it has a very expensive valuation with a 1.02 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 25.52%, its profits have fallen by -12.5%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Kintetsu Group Holdings Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kintetsu Group Holdings Co., Ltd.

-100.0%

-0.12

20.29%

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)

18.00%

EBIT Growth (5y)

28.17%

EBIT to Interest (avg)

3.19

Debt to EBITDA (avg)

9.50

Net Debt to Equity (avg)

1.86

Sales to Capital Employed (avg)

0.96

Tax Ratio

33.62%

Dividend Payout Ratio

20.35%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

3.19%

ROE (avg)

8.57%

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

1.06

EV to EBIT

18.89

EV to EBITDA

9.71

EV to Capital Employed

1.02

EV to Sales

0.96

PEG Ratio

Dividend Yield

ROCE (Latest)

5.40%

ROE (Latest)

9.18%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly 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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.26% (YoY

NET PROFIT(Q)

Highest at JPY 22,009 MM

-12What is not working for the Company

INTEREST(HY)

At JPY 7,836 MM has Grown at 26.86%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.12 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,052.16

Here's what is working for Kintetsu Group Holdings Co., Ltd.

Net Profit

Highest at JPY 22,009 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Net Profit

At JPY 22,009 MM has Grown at 98.03%

over average net sales of the previous four periods of JPY 11,113.9 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Raw Material Cost

Fallen by -1.26% (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 25,016 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 Kintetsu Group Holdings Co., Ltd.

Interest

At JPY 7,836 MM has Grown at 26.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 1,052.16

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 6.12 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio