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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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 34.44%, the company declared Very Positive results in Dec 25

NET PROFIT(HY) At JPY 6,556.08 MM has Grown at 125.45%
NET SALES(HY) At JPY 167,612 MM has Grown at 18.43%
ROCE(HY) Highest at 11.64%

With ROE of 7.05%, it has a very attractive valuation with a 0.98 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 80.67%, its profits have fallen by -4.2%

Market Beating performance in long term as well as near term

Along with generating 80.67% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

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, High Return

Absolute

Risk Adjusted

Volatility

Tokyu Construction Co., Ltd.

80.67%

3.05

29.52%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.87%

EBIT Growth (5y)

-15.33%

EBIT to Interest (avg)

13.85

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

2.15

Tax Ratio

30.52%

Dividend Payout Ratio

60.59%

Pledged Shares

Institutional Holding

ROCE (avg)

5.81%

ROE (avg)

4.60%

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

0.98

EV to EBIT

9.84

EV to EBITDA

8.60

EV to Capital Employed

0.98

EV to Sales

0.30

PEG Ratio

Dividend Yield

ROCE (Latest)

9.95%

ROE (Latest)

7.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

Bullish

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

18What is working for the Company

NET PROFIT(HY)

At JPY 6,556.08 MM has Grown at 125.45%

NET SALES(HY)

At JPY 167,612 MM has Grown at 18.43%

ROCE(HY)

Highest at 11.64%

INTEREST COVERAGE RATIO(Q)

Highest at 5,449.51

RAW MATERIAL COST(Y)

Fallen by -16.87% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 6.27 %

EPS(Q)

Highest at JPY 36.34

-7What is not working for the Company

INTEREST(HY)

At JPY 197 MM has Grown at 16.57%

INVENTORY TURNOVER RATIO(HY)

Lowest at 12.8 times

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

Net Profit

At JPY 6,556.08 MM has Grown at 125.45%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Interest Coverage Ratio

Highest at 5,449.51

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At JPY 167,612 MM has Grown at 18.43%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (JPY MM)

Operating Profit Margin

Highest at 6.27 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at JPY 36.34

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (JPY)

Raw Material Cost

Fallen by -16.87% (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 430 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 197 MM has Grown at 16.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 12.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio