Tokyu Construction Co., Ltd. (1720) 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

Tokyu Construction Co., Ltd.

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Token Corp.

Takamatsu Construction Group Co. Ltd.

Tama Home Co., Ltd.

Iida Group Holdings Co., Ltd.

Nishimatsu Construction Co., Ltd.

HASEKO Corp.

Nagawa Co., Ltd.

Pressance Corp.

Why is Tokyu Construction Co., Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 13.85

With a growth in Net Profit of 42%, the company declared Very Positive results in Mar 26

ROCE(HY) Highest at 12.57%
RAW MATERIAL COST(Y) Fallen by 1.02% (YoY)
DIVIDEND PER SHARE(HY) Highest at JPY 2.23

With ROE of 11.87%, it has a very attractive valuation with a 1.54 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 14.35%, its profits have risen by 68.5% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you buy?

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

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tokyu Construction Co., Ltd.

14.35%

1.67

32.76%

Japan Nikkei 225

88.41%

3.12

27.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.00%

EBIT Growth (5y)

28.37%

EBIT to Interest (avg)

13.85

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

2.12

Tax Ratio

30.52%

Dividend Payout Ratio

60.59%

Pledged Shares

Institutional Holding

ROCE (avg)

5.81%

ROE (avg)

4.65%

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

1.54

EV to EBIT

10.51

EV to EBITDA

9.61

EV to Capital Employed

1.51

EV to Sales

0.50

PEG Ratio

0.19

Dividend Yield

ROCE (Latest)

14.39%

ROE (Latest)

11.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

13What is working for the Company

ROCE(HY)

Highest at 12.57%

RAW MATERIAL COST(Y)

Fallen by 1.02% (YoY

DIVIDEND PER SHARE(HY)

Highest at JPY 2.23

NET SALES(Q)

Highest at JPY 101,621 MM

OPERATING PROFIT(Q)

Highest at JPY 6,454 MM

OPERATING PROFIT MARGIN(Q)

Highest at 6.35 %

PRE-TAX PROFIT(Q)

Highest at JPY 6,974 MM

NET PROFIT(Q)

Highest at JPY 5,431.87 MM

EPS(Q)

Highest at JPY 51.01

-13What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.92 times

INTEREST(Q)

Highest at JPY 174 MM

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

Net Sales

Highest at JPY 101,621 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit

Highest at JPY 6,454 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (JPY MM)

Operating Profit Margin

Highest at 6.35 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at JPY 6,974 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (JPY MM)

Net Profit

Highest at JPY 5,431.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (JPY MM)

EPS

Highest at JPY 51.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Dividend per share

Highest at JPY 2.23

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (JPY)

Raw Material Cost

Fallen by 1.02% (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

Depreciation

Highest at JPY 477 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (JPY MM)

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

Interest

At JPY 174 MM has Grown at 68.93%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 11.92 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 68.93% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)