Why is Kitano Construction Corp. ?
1
Poor Management Efficiency with a low ROE of 6.89%
- The company has been able to generate a Return on Equity (avg) of 6.89% signifying low profitability per unit of shareholders funds
2
Weak Long Term Fundamental Strength with a 8.83% CAGR growth in Operating Profits over the last 5 years
- The company has been able to generate a Return on Equity (avg) of 6.89% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 0.80% and Operating profit at 8.83% over the last 5 years
4
Flat results in Jun 26
- INVENTORY TURNOVER RATIO(HY) Lowest at 8.9 times
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.59 times
5
With ROE of 7.64%, it has a fair valuation with a 0.52 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 -71.27%, its profits have risen by 11.8%
- At the current price, the company has a high dividend yield of 0
6
Below par performance in long term as well as near term
- Along with generating -71.27% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Kitano Construction 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 Kitano Construction Corp. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Kitano Construction Corp.
-71.27%
-0.79
84.56%
Japan Nikkei 225
59.79%
2.03
29.50%
Quality key factors
Factor
Value
Sales Growth (5y)
0.80%
EBIT Growth (5y)
8.83%
EBIT to Interest (avg)
84.44
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.40
Sales to Capital Employed (avg)
1.80
Tax Ratio
27.99%
Dividend Payout Ratio
20.90%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
19.04%
ROE (avg)
6.89%
Valuation Key Factors 
Factor
Value
P/E Ratio
7
Industry P/E
Price to Book Value
0.52
EV to EBIT
3.19
EV to EBITDA
2.66
EV to Capital Employed
0.37
EV to Sales
0.18
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
11.61%
ROE (Latest)
7.64%
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Movement
6What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -14.87% (YoY
NET PROFIT(9M)
Higher at JPY 3,291.54 MM
-3What is not working for the Company
INVENTORY TURNOVER RATIO(HY)
Lowest at 8.9 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.59 times
Here's what is working for Kitano Construction Corp.
Net Profit
At JPY 3,291.54 MM has Grown at 90.68%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
Net Profit
Higher at JPY 3,291.54 MM
than preceding 12 month period ended Jun 2026MOJO Watch
In the nine month period the company has already crossed sales of the previous twelve months
Net Profit (JPY MM)
Raw Material Cost
Fallen by -14.87% (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 Kitano Construction Corp.
Inventory Turnover Ratio
Lowest at 8.9 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 4.59 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






