Wakachiku Construction Co., Ltd. (1888) 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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Wakachiku Construction Co., Ltd.

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Yahagi Construction Co., Ltd.

Why is Wakachiku Construction Co., Ltd. ?

Positive results in Jun 26

PRE-TAX PROFIT(Q) At JPY 1,817 MM has Grown at 782.04%
NET PROFIT(Q) At JPY 1,197.67 MM has Grown at 1,040.64%
ROCE(HY) Highest at 10.92%

With ROE of 8.52%, 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 -36.15%, its profits have risen by 16.4% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you buy?

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

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wakachiku Construction Co., Ltd.

-30.25%

0.29

35.82%

Japan Nikkei 225

57.85%

1.98

29.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.19%

EBIT Growth (5y)

28.35%

EBIT to Interest (avg)

27.80

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

1.64

Tax Ratio

31.16%

Dividend Payout Ratio

39.32%

Pledged Shares

Institutional Holding

ROCE (avg)

20.85%

ROE (avg)

10.28%

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

7.36

EV to EBITDA

6.51

EV to Capital Employed

0.87

EV to Sales

0.47

PEG Ratio

0.61

Dividend Yield

ROCE (Latest)

11.81%

ROE (Latest)

8.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly 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

21What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 1,817 MM has Grown at 782.04%

NET PROFIT(Q)

At JPY 1,197.67 MM has Grown at 1,040.64%

ROCE(HY)

Highest at 10.92%

INVENTORY TURNOVER RATIO(HY)

Highest at 20.43 times

NET SALES(Q)

At JPY 27,170 MM has Grown at 34.25%

RAW MATERIAL COST(Y)

Fallen by -42.33% (YoY

-8What is not working for the Company

INTEREST(HY)

At JPY 205 MM has Grown at 150%

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

Pre-Tax Profit

At JPY 1,817 MM has Grown at 782.04%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 1,197.67 MM has Grown at 1,040.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 27,170 MM has Grown at 34.25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 20.43 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -42.33% (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 Wakachiku Construction Co., Ltd.

Interest

At JPY 205 MM has Grown at 150%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)