Nankai Tatsumura Construction Co., Ltd. (1850) 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

Sanyo Engineering & Construction, Inc.

Nankai Tatsumura Construction Co., Ltd.

NASU DENKI-TEKKO CO., LTD.

Japan Warranty Support Co., Ltd.

UEKI CORP.

Kawagishi Bridge Works Co., Ltd.

Mori-Gumi Co., Ltd.

Sumiken Mitsui Road Co., Ltd.

CEL Corp.

Kaneshita Construction Co., Ltd.

KFC Ltd.

Why is Nankai Tatsumura Construction Co., Ltd. ?

High Management Efficiency with a high ROE of 11.06%

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

Poor long term growth as Net Sales has grown by an annual rate of 5.69% and Operating profit at 1.02% over the last 5 years

Flat results in Jun 25

INTEREST(HY) At JPY 23 MM has Grown at 475%
INTEREST COVERAGE RATIO(Q) Lowest at 5,718.18
CASH AND EQV(HY) Lowest at JPY 8,187 MM

With ROE of 10.05%, it has a very attractive 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 95.64%, its profits have risen by 50.4% ; the PEG ratio of the company is 0.1

Market Beating Performance

The stock has generated a return of 95.64% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nankai Tatsumura Construction 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 Nankai Tatsumura Construction Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Nankai Tatsumura Construction Co., Ltd.

90.94%

1.71

45.42%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.69%

EBIT Growth (5y)

1.02%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.23

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

2.57

Tax Ratio

28.22%

Dividend Payout Ratio

10.09%

Pledged Shares

Institutional Holding

ROCE (avg)

14.92%

ROE (avg)

11.06%

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

0.52

EV to EBIT

4.64

EV to EBITDA

4.44

EV to Capital Employed

0.57

EV to Sales

0.21

PEG Ratio

0.10

Dividend Yield

ROCE (Latest)

12.32%

ROE (Latest)

10.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

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

11What is working for the Company

NET SALES(HY)

At JPY 27,880 MM has Grown at 27.31%

RAW MATERIAL COST(Y)

Fallen by -18.98% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 36.68%

DEBTORS TURNOVER RATIO(HY)

Highest at 2.6%

PRE-TAX PROFIT(Q)

At JPY 605 MM has Grown at 77.42%

NET PROFIT(Q)

At JPY 416 MM has Grown at 81.66%

-11What is not working for the Company

INTEREST(HY)

At JPY 23 MM has Grown at 475%

INTEREST COVERAGE RATIO(Q)

Lowest at 5,718.18

CASH AND EQV(HY)

Lowest at JPY 8,187 MM

Here's what is working for Nankai Tatsumura Construction Co., Ltd.

Net Sales

At JPY 27,880 MM has Grown at 27.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Pre-Tax Profit

At JPY 605 MM has Grown at 77.42%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 416 MM has Grown at 81.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

Inventory Turnover Ratio

Highest at 36.68%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.6%

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 -18.98% (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 Nankai Tatsumura Construction Co., Ltd.

Interest

At JPY 23 MM has Grown at 475%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Interest Coverage Ratio

Lowest at 5,718.18

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Cash and Eqv

Lowest at JPY 8,187 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents