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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Nankai Tatsumura Construction Co., Ltd.

CEL Corp.

Why is Nankai Tatsumura Construction Co., Ltd. ?

Weak Long Term Fundamental Strength with a 10.70% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Net Sales has grown by an annual rate of 0.43% and Operating profit at 10.70% over the last 5 years

Negative results in Jun 26

DEBTORS TURNOVER RATIO(HY) Lowest at 2.07 times
NET SALES(Q) Lowest at JPY 9,790 MM
OPERATING PROFIT(Q) Lowest at JPY 488 MM

With ROE of 10.67%, it has a attractive valuation with a 0.57 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 -0.72%, its profits have risen by 20.9% ; the PEG ratio of the company is 0.3

Below par performance in long term as well as near term

Along with generating -0.72% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nankai Tatsumura Construction Co., Ltd.

-0.72%

0.52

49.96%

Japan Nikkei 225

59.79%

2.03

29.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.43%

EBIT Growth (5y)

10.70%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

0.16

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

2.54

Tax Ratio

26.72%

Dividend Payout Ratio

11.02%

Pledged Shares

Institutional Holding

ROCE (avg)

16.18%

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

0.57

EV to EBIT

1.90

EV to EBITDA

1.83

EV to Capital Employed

0.39

EV to Sales

0.12

PEG Ratio

0.26

Dividend Yield

ROCE (Latest)

20.62%

ROE (Latest)

10.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.39% (YoY

CASH AND EQV(HY)

Highest at JPY 14,844 MM

-17What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.07 times

NET SALES(Q)

Lowest at JPY 9,790 MM

OPERATING PROFIT(Q)

Lowest at JPY 488 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.98 %

PRE-TAX PROFIT(Q)

Lowest at JPY 491 MM

NET PROFIT(Q)

Lowest at JPY 333.66 MM

EPS(Q)

Lowest at JPY 10.59

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

Cash and Eqv

Highest at JPY 14,844 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -5.39% (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.

Net Sales

At JPY 9,790 MM has Fallen at -14.24%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (JPY MM)

Net Sales

Lowest at JPY 9,790 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (JPY MM)

Operating Profit

Lowest at JPY 488 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (JPY MM)

Operating Profit Margin

Lowest at 4.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at JPY 491 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (JPY MM)

Net Profit

Lowest at JPY 333.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (JPY MM)

EPS

Lowest at JPY 10.59

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (JPY)

Debtors Turnover Ratio

Lowest at 2.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at JPY 0.06 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income