Takamatsu Construction Group Co. Ltd. (1762) 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

HASEKO Corp.

Open House Group Co., Ltd.

Iida Group Holdings Co., Ltd.

Takamatsu Construction Group Co. Ltd.

Token Corp.

KATITAS Co., Ltd.

Tama Home Co., Ltd.

Sumitomo Forestry Co., Ltd.

Nishimatsu Construction Co., Ltd.

Nagawa Co., Ltd.

Pressance Corp.

Why is Takamatsu Construction Group Co. Ltd. ?

Poor Management Efficiency with a low ROE of 6.07%

The company has been able to generate a Return on Equity (avg) of 6.07% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a 6.19% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 6.07% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 6.19% of over the last 5 years

Flat results in Jun 26

INVENTORY TURNOVER RATIO(HY) Lowest at 4.06 times
INTEREST(Q) Highest at JPY 174 MM

With ROE of 7.36%, it has a very attractive valuation with a 0.86 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 17.33%, its profits have risen by 17.6% ; the PEG ratio of the company is 0.7

Underperformed the market in the last 1 year

The stock has generated a return of 17.33% in the last 1 year, much lower than market (Japan Nikkei 225) returns of 61.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Takamatsu Construction Group Co. Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Takamatsu Construction Group Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Takamatsu Construction Group Co. Ltd.

12.55%

1.01

30.10%

Japan Nikkei 225

59.79%

2.06

29.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.32%

EBIT Growth (5y)

6.19%

EBIT to Interest (avg)

53.25

Debt to EBITDA (avg)

0.18

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

2.00

Tax Ratio

35.49%

Dividend Payout Ratio

39.61%

Pledged Shares

Institutional Holding

ROCE (avg)

10.58%

ROE (avg)

6.07%

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

0.86

EV to EBIT

7.95

EV to EBITDA

6.95

EV to Capital Employed

0.87

EV to Sales

0.37

PEG Ratio

0.66

Dividend Yield

ROCE (Latest)

10.91%

ROE (Latest)

7.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bearish

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

13What is working for the Company

NET PROFIT(Q)

At JPY 3,270.05 MM has Grown at 306.72%

ROCE(HY)

Highest at 9.8%

PRE-TAX PROFIT(Q)

At JPY 5,281 MM has Grown at 180.31%

RAW MATERIAL COST(Y)

Fallen by -22.47% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.84 times

-13What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.06 times

INTEREST(Q)

Highest at JPY 174 MM

Here's what is working for Takamatsu Construction Group Co. Ltd.

Net Profit

At JPY 3,270.05 MM has Grown at 306.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Pre-Tax Profit

At JPY 5,281 MM has Grown at 180.31%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Debtors Turnover Ratio

Highest at 3.84 times

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 -22.47% (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 Takamatsu Construction Group Co. Ltd.

Interest

At JPY 174 MM has Grown at 26.09%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 4.06 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at JPY 174 MM

in the last five periods and Increased by 26.09% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)