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Kumagai Gumi Co., Ltd.

  • Market Cap: Small Cap
  • Industry: Construction
  • ISIN: JP3266800006
  • TKS: 1861
JPY
1,327.00
3 (0.23%)

Sep 18

TKS

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
MEITEC Group Holdings, Inc.
SHO-BOND Holdings Co. Ltd.
Hazama Ando Corp.
Toda Corp.
Japan Elevator Service Holdings Co., Ltd.
Kumagai Gumi Co., Ltd.
MIRAIT One Corp.
Kyudenko Corp.
Penta-Ocean Construction Co., Ltd.
Kandenko Co., Ltd.
Okumura Corp.

Why is Kumagai Gumi Co., Ltd. ?

1
Weak Long Term Fundamental Strength with a 0.88% CAGR growth in Operating Profits over the last 5 years
2
Poor long term growth as Net Sales has grown by an annual rate of 3.25% and Operating profit at 0.88% over the last 5 years
3
Negative results in Jun 26
  • INTEREST(HY) At JPY 576 MM has Grown at 53.19%
  • INTEREST COVERAGE RATIO(Q) Lowest at 1,276.81
  • NET SALES(Q) Lowest at JPY 100,018 MM
4
With ROE of 11.32%, it has a expensive 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 -72.47%, its profits have risen by 569.1% ; the PEG ratio of the company is 0.2
5
Underperformed the market in the last 1 year
  • Even though the market (Japan Nikkei 225) has generated returns of 43.52% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -72.47% returns
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Kumagai Gumi Co., Ltd. should be less than 10%
  2. 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 Kumagai Gumi Co., Ltd. for you?

High Risk, Low Return

Absolute
Risk Adjusted
Volatility
Kumagai Gumi Co., Ltd.
-72.47%
-0.75
84.79%
Japan Nikkei 225
43.52%
1.48
29.43%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
3.25%
EBIT Growth (5y)
0.88%
EBIT to Interest (avg)
36.86
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.04
Sales to Capital Employed (avg)
2.04
Tax Ratio
32.97%
Dividend Payout Ratio
40.19%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
11.83%
ROE (avg)
7.25%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
12
Industry P/E
Price to Book Value
1.31
EV to EBIT
8.97
EV to EBITDA
8.39
EV to Capital Employed
1.27
EV to Sales
0.52
PEG Ratio
0.17
Dividend Yield
NA
ROCE (Latest)
14.17%
ROE (Latest)
11.32%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
Mildly Bullish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company
RAW MATERIAL COST(Y)

Fallen by -26.96% (YoY

NET PROFIT(9M)

Higher at JPY 17,365.86 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 58.88 times

-14What is not working for the Company
INTEREST(HY)

At JPY 576 MM has Grown at 53.19%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,276.81

NET SALES(Q)

Lowest at JPY 100,018 MM

Here's what is working for Kumagai Gumi Co., Ltd.

Net Profit
At JPY 17,365.86 MM has Grown at 67.76%
Year on Year (YoY)
MOJO Watch
Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio
Highest at 58.88 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Profit
Higher at JPY 17,365.86 MM
than preceding 12 month period ended Jun 2026
MOJO 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 -26.96% (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 Kumagai Gumi Co., Ltd.

Interest
At JPY 576 MM has Grown at 53.19%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio
Lowest at 1,276.81
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales
Lowest at JPY 100,018 MM
in the last five periods
MOJO Watch
Near term sales trend is negative

Net Sales (JPY MM)

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