Yahagi Construction Co., Ltd. (1870) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shin Nippon Air Technologies Co., Ltd.

Yahagi Construction Co., Ltd.

Yurtec Corp.

Seikitokyu Kogyo Co., Ltd.

CTI Engineering Co., Ltd.

Sumitomo Mitsui Construction Co., Ltd.

Oyo Corp.

Nichireki Co., Ltd.

TOA Road Corp.

Meisei Industrial Co., Ltd.

JDC Corp. (Japan)

Why is Yahagi Construction Co., Ltd. ?

High Management Efficiency with a high ROCE of 10.54%

With a growth in Net Profit of 338.36%, the company declared Very Positive results in Jun 25

PRE-TAX PROFIT(Q) At JPY 3,675 MM has Grown at 372.97%
NET PROFIT(Q) At JPY 2,560 MM has Grown at 338.36%
NET SALES(Q) At JPY 41,153 MM has Grown at 54.51%

With ROCE of 9.43%, it has a very attractive valuation with a 1.08 Enterprise value to Capital Employed

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 47.68%, its profits have fallen by -10.9%
At the current price, the company has a high dividend yield of 0.1

Market Beating Performance

The stock has generated a return of 47.68% in the last 1 year, much higher than market (Japan Nikkei 225) returns of 29.35%

Real-Time Research Report

Verdict Report

How much should you buy?

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

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Yahagi Construction Co., Ltd.

46.51%

1.41

30.82%

Japan Nikkei 225

28.54%

1.14

25.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.32%

EBIT Growth (5y)

2.19%

EBIT to Interest (avg)

67.60

Debt to EBITDA (avg)

1.49

Net Debt to Equity (avg)

0.33

Sales to Capital Employed (avg)

1.31

Tax Ratio

30.86%

Dividend Payout Ratio

61.00%

Pledged Shares

Institutional Holding

ROCE (avg)

10.54%

ROE (avg)

8.96%

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

1.11

EV to EBIT

11.49

EV to EBITDA

10.16

EV to Capital Employed

1.08

EV to Sales

0.71

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

9.43%

ROE (Latest)

8.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Bullish

OBV

Mildly Bullish

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

24What is working for the Company

PRE-TAX PROFIT(Q)

At JPY 3,675 MM has Grown at 372.97%

NET PROFIT(Q)

At JPY 2,560 MM has Grown at 338.36%

NET SALES(Q)

At JPY 41,153 MM has Grown at 54.51%

RAW MATERIAL COST(Y)

Fallen by -31.44% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.93%

-10What is not working for the Company

INTEREST(HY)

At JPY 174 MM has Grown at 314.29%

CASH AND EQV(HY)

Lowest at JPY 32,028 MM

DEBT-EQUITY RATIO (HY)

Highest at 36.98 %

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

Pre-Tax Profit

At JPY 3,675 MM has Grown at 372.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (JPY MM)

Net Profit

At JPY 2,560 MM has Grown at 338.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (JPY MM)

Net Sales

At JPY 41,153 MM has Grown at 54.51%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Inventory Turnover Ratio

Highest at 4.93%

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 -31.44% (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 341 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 Yahagi Construction Co., Ltd.

Interest

At JPY 174 MM has Grown at 314.29%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Cash and Eqv

Lowest at JPY 32,028 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 36.98 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio