DB:KAJ

Stock Analysis Report

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Executive Summary

Kajima Corporation engages in the construction, real estate development and management, architectural and engineering design, and other activities worldwide.


Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Kajima's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KAJ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

KAJ

9.5%

DE Construction

6.8%

DE Market


1 Year Return

-17.1%

KAJ

-20.4%

DE Construction

5.6%

DE Market

Return vs Industry: KAJ exceeded the German Construction industry which returned -27% over the past year.

Return vs Market: KAJ underperformed the German Market which returned 4.1% over the past year.


Shareholder returns

KAJIndustryMarket
7 Day0%9.5%6.8%
30 Day12.7%26.9%14.0%
90 Day12.7%7.7%7.5%
1 Year-13.8%-17.1%-14.0%-20.4%7.4%5.6%
3 Year-20.6%-27.7%-39.8%-47.7%0.3%-7.3%
5 Year43.5%24.9%49.2%25.9%12.4%-2.0%

Price Volatility Vs. Market

How volatile is Kajima's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Kajima undervalued compared to its fair value and its price relative to the market?

22.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KAJ (€10.2) is trading below our estimate of fair value (€13.18)

Significantly Below Fair Value: KAJ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KAJ is good value based on its PE Ratio (6.3x) compared to the Construction industry average (11.1x).

PE vs Market: KAJ is good value based on its PE Ratio (6.3x) compared to the German market (20.1x).


Price to Earnings Growth Ratio

PEG Ratio: KAJ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: KAJ is good value based on its PB Ratio (0.8x) compared to the XE Construction industry average (1.1x).


Next Steps

Future Growth

How is Kajima forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-0.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KAJ's earnings are forecast to decline over the next 3 years (-0.5% per year).

Earnings vs Market: KAJ's earnings are forecast to decline over the next 3 years (-0.5% per year).

High Growth Earnings: KAJ's earnings are forecast to decline over the next 3 years.

Revenue vs Market: KAJ's revenue (0.5% per year) is forecast to grow slower than the German market (5.7% per year).

High Growth Revenue: KAJ's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KAJ's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has Kajima performed over the past 5 years?

17.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KAJ has high quality earnings.

Growing Profit Margin: KAJ's current net profit margins (5.1%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: KAJ's earnings have grown by 17.9% per year over the past 5 years.

Accelerating Growth: KAJ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KAJ had negative earnings growth (-5.9%) over the past year, making it difficult to compare to the Construction industry average (7.6%).


Return on Equity

High ROE: KAJ's Return on Equity (13%) is considered low.


Next Steps

Financial Health

How is Kajima's financial position?


Financial Position Analysis

Short Term Liabilities: KAJ's short term assets (¥1,349.3B) exceed its short term liabilities (¥1,125.4B).

Long Term Liabilities: KAJ's short term assets (¥1,349.3B) exceed its long term liabilities (¥250.7B).


Debt to Equity History and Analysis

Debt Level: KAJ's debt to equity ratio (41.1%) is considered high.

Reducing Debt: KAJ's debt to equity ratio has reduced from 87.9% to 41.1% over the past 5 years.

Debt Coverage: KAJ's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: KAJ earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Kajima's current dividend yield, its reliability and sustainability?

3.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KAJ's dividend (3.94%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: KAJ's dividend (3.94%) is in the top 25% of dividend payers in the German market (3.8%)


Stability and Growth of Payments

Stable Dividend: KAJ's dividend payments have been volatile in the past 10 years.

Growing Dividend: KAJ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.9%), KAJ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.2yrs

Average management tenure


CEO

Yoshikazu Oshimi (70yo)

5yrs

Tenure

Mr. Yoshikazu Oshimi has been Executive President of Kajima Corporation since June 25, 2015. Mr. Oshimi served as Senior Managing Executive Officer and Manager of Kansai Branch at Kajima Corporation. Mr. O ...


Leadership Team

NamePositionTenureCompensationOwnership
Yoshikazu Oshimi
President & Representative Director5yrsno data0.0019% ¥102.7k
Yutaka Takeda
Senior Executive Officerno datano datano data
Hiroshi Ishikawa
Executive VP20yrsno data0.50% ¥26.2m
Naoki Atsumi
Executive VP & Representative Director18yrsno data0.19% ¥10.2m
Teruaki Yamaguchi
Executive VP & GM of Real Estate Development Divisionno datano datano data
Masaru Ozaki
Executive VP & GM of Architectural Design Divisionno datano datano data
Masao Oka
Executive Vice Presidentno datano datano data
Masayasu Kayano
Executive VP & Representative Director6yrsno data0.00098% ¥51.6k
Kazuo Kojima
Executive Vice Presidentno datano datano data
Hiroyoshi Koizumi
Executive VP5yrsno data0.00078% ¥41.1k

9.2yrs

Average Tenure

70yo

Average Age

Experienced Management: KAJ's management team is seasoned and experienced (9.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yoshikazu Oshimi
President & Representative Director5yrsno data0.0019% ¥102.7k
Hiroshi Ishikawa
Executive VP20yrsno data0.50% ¥26.2m
Naoki Atsumi
Executive VP & Representative Director18yrsno data0.19% ¥10.2m
Masayasu Kayano
Executive VP & Representative Director6yrsno data0.00098% ¥51.6k
Hiroyoshi Koizumi
Executive VP5yrsno data0.00078% ¥41.1k
Ken Uchida
Managing Executive Officer3yrsno data0.0014% ¥72.2k
Shoichi Kajima
Senior Advisor & Director 67.17yrsno data3.08% ¥162.3m
Mitsuyoshi Nakamura
Chairman5yrsno data0.0019% ¥102.7k
Nobuyuki Hiraizumi
Director8yrsno data0.20% ¥10.3m
Koji Furukawa
Independent Outside Director5yrsno data0.00098% ¥51.6k

5.5yrs

Average Tenure

70yo

Average Age

Experienced Board: KAJ's board of directors are considered experienced (5.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kajima Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kajima Corporation
  • Ticker: KAJ
  • Exchange: DB
  • Founded: 1840
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: JP¥650.462b
  • Listing Market Cap: JP¥5.267b
  • Shares outstanding: 512.58m
  • Website: https://www.kajima.co.jp

Number of Employees


Location

  • Kajima Corporation
  • 3-1, Motoakasaka 1-chome
  • Minato-ku
  • Tokyo
  • 107-8388
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KAJM.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1975
1812TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYJan 1975
KAJDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1975
KAJM.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDJan 1980

Biography

Kajima Corporation engages in the construction, real estate development and management, architectural and engineering design, and other activities worldwide. It provides procurement and construction services comprising sale and rental of construction equipment and materials, and subcontracting for various construction projects; ground improvement, foundation construction, and soil remediation; paving of roads, bridges, airports, etc., as well as manufacture and sale of paving materials; ocean port and coastal protection work, and geological surveying; calculation and preparation of construction plans; environmental and consulting work focused on water and waste; construction machinery manufacturing; repair and reinforcement work for civil engineering structures, and sale of repair materials; and integrated facility construction, and renovation services. The company also offers building management services; leasing and operational management services of real estate, and hotel management; and brokerage and appraisal services of real estate. In addition, it provides travel agency, product sales, and business services; temporary staffing and human resources placement, and events planning services; planning of construction projects, and building and equipment leasing; design, operation, and management of information communication technology infrastructure and various computer systems; collection, transportation, and processing of waste; public relations and advertising planning and production, as well as video production services; and real estate asset management and consulting, as well as buying, selling, and brokerage of beneficial interests of a trust. Further, the company offers book publishing; hotel, golf course, and ski resort services; and greening landscaping, mountain forest management, and agency handling services of property, casualty, and life insurance. Kajima Corporation was founded in 1840 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 23:27
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.