Kyowanissei Co., Ltd. (1981) 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

Tomoe Corp.

Mitsubishi Kakoki Kaisha, Ltd.

Novac Co., Ltd.

Kitano Construction Corp.

Kyowanissei Co., Ltd.

Matsui Construction Co., Ltd.

The Takigami Steel Construction Co., Ltd.

Daiseki Eco. Solution Co., Ltd.

Lib Work Co., Ltd.

MIYAJI ENGINEERING GROUP, INC.

KOZO KEIKAKU ENGINEERING, Inc.

Why is Kyowanissei Co., Ltd. ?

Poor Management Efficiency with a low ROE of 6.59%

The company has been able to generate a Return on Equity (avg) of 6.59% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 7.37% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 6.59% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.34% and Operating profit at 7.37% over the last 5 years

Flat results in Jun 26

DEBTORS TURNOVER RATIO(HY) Lowest at 6.68 times
OPERATING PROFIT(Q) Lowest at JPY 178.23 MM
OPERATING PROFIT MARGIN(Q) Lowest at 2.04 %

With ROE of 7.79%, it has a very attractive valuation with a 0.71 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 -11.61%, its profits have risen by 77.5% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kyowanissei Co., Ltd. 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 Kyowanissei Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kyowanissei Co., Ltd.

-14.35%

0.24

24.54%

Japan Nikkei 225

60.14%

2.04

29.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.34%

EBIT Growth (5y)

7.37%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

2.02

Tax Ratio

26.39%

Dividend Payout Ratio

42.54%

Pledged Shares

Institutional Holding

ROCE (avg)

11.89%

ROE (avg)

6.59%

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

0.71

EV to EBIT

3.59

EV to EBITDA

3.04

EV to Capital Employed

0.55

EV to Sales

0.17

PEG Ratio

0.11

Dividend Yield

ROCE (Latest)

15.43%

ROE (Latest)

7.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at JPY 2,717.12 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 14.91 times

-4What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.68 times

OPERATING PROFIT(Q)

Lowest at JPY 178.23 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.04 %

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

Operating Cash Flow

Highest at JPY 2,717.12 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (JPY MM)

Inventory Turnover Ratio

Highest at 14.91 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Kyowanissei Co., Ltd.

Debtors Turnover Ratio

Lowest at 6.68 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at JPY 178.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 2.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Non Operating Income

Highest at JPY 0.69 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income