DB:KUG1

Stock Analysis Report

Executive Summary

Kumagai Gumi Co., Ltd. operates as a construction company in Japan and internationally.


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KUG1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

KUG1

-2.9%

DE Construction

-0.2%

DE Market


1 Year Return

n/a

KUG1

-18.0%

DE Construction

13.7%

DE Market

Return vs Industry: Insufficient data to determine how KUG1 performed against the German Construction industry.

Return vs Market: Insufficient data to determine how KUG1 performed against the German Market.


Shareholder returns

KUG1IndustryMarket
7 Day-2.2%-2.9%-0.2%
30 Day-3.7%-9.4%0.3%
90 Day-1.5%0.3%3.7%
1 Yearn/a-14.6%-18.0%17.2%13.7%
3 Year12.2%2.7%-17.3%-23.5%15.4%5.3%
5 Year0.5%-9.7%64.8%46.3%21.3%4.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KUG1 (€26.2) is trading below our estimate of fair value (€58.98)

Significantly Below Fair Value: KUG1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KUG1 is good value based on its PE Ratio (9x) compared to the Construction industry average (12.3x).

PE vs Market: KUG1 is good value based on its PE Ratio (9x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: KUG1 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: KUG1 is good value based on its PB Ratio (1x) compared to the XE Construction industry average (1.2x).


Next Steps

Future Growth

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

7.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KUG1's forecast earnings growth (7.1% per year) is above the savings rate (-0.4%).

Earnings vs Market: KUG1's earnings (7.1% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: KUG1's earnings are forecast to grow, but not significantly.

Revenue vs Market: KUG1's revenue (3.8% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: KUG1's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KUG1's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Kumagai GumiLtd performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KUG1 has a high level of non-cash earnings.

Growing Profit Margin: KUG1's current net profit margins (3.9%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: KUG1's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: KUG1's earnings growth over the past year (16.9%) exceeds its 5-year average (11.6% per year).

Earnings vs Industry: KUG1 earnings growth over the past year (16.9%) exceeded the Construction industry 2.1%.


Return on Equity

High ROE: KUG1's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kumagai GumiLtd's financial position?


Financial Position Analysis

Short Term Liabilities: KUG1's short term assets (¥280.4B) exceed its short term liabilities (¥174.7B).

Long Term Liabilities: KUG1's short term assets (¥280.4B) exceed its long term liabilities (¥25.5B).


Debt to Equity History and Analysis

Debt Level: KUG1's debt to equity ratio (8.6%) is considered satisfactory.

Reducing Debt: KUG1's debt to equity ratio has reduced from 40.1% to 8.6% over the past 5 years.

Debt Coverage: KUG1's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: KUG1 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: KUG1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: KUG1's debt is covered by short term assets (assets are 22.8x debt).


Next Steps

Dividend

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

3.76%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 21 2020Ex Dividend DateMar 30 2020Dividend Pay DateJun 28 202090 days from Ex DividendBuy in the next 37 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: KUG1's dividend (3.76%) is higher than the bottom 25% of dividend payers in the German market (1.32%).

High Dividend: KUG1's dividend (3.76%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KUG1 has been paying a dividend for less than 10 years.

Growing Dividend: KUG1's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.1%), KUG1'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?

2.8yrs

Average management tenure


CEO

Yasunori Sakurano (62yo)

1.8yrs

Tenure

Yasunori Sakurano has been General Manager of Corporate Planning Division at Kumagai Gumi Co.,Ltd. since April 2014 an has been its Senior Managing Executive Officer since April 2017. Yasunori Sakurano ser ...


Leadership Team

NamePositionTenureCompensationOwnership
Yasunori Sakurano
CEO, President & Representative Director1.8yrsno data0.0086% ¥106.3k
Koji Hidaka
MD, Managing Exe Officer1.7yrsno data0.0049% ¥61.2k
Susumu Ogawa
Senior MD0yrsno data0.0047% ¥58.5k
Akira Yamazaki
Managing Executive Officer In charge of Domestic & Overseas Sales of Civil Engineering Business Unit8.8yrsno datano data
Satoshi Shibukawa
Senior Managing Executive Officer & Head of Tohoku Branch0yrsno datano data
Hiroshi Iida
Managing Executive Officer Manager of Iidabashi Project Office - Corporate Planning Division0yrsno datano data
Yoshiaki Ogawa
Senior MD0yrsno data0.0069% ¥85.1k
Masahiko Takashima
Executive VP0yrsno datano data
Katsuhiko Hayashi
Executive Officer & Head of Corporate Communication - Corporate Planning Division0yrsno datano data
Yoshihiko Kato
Sr. MD, Sr. Managing Exec. Officer0yrsno data0.0043% ¥53.2k

2.8yrs

Average Tenure

61yo

Average Age

Experienced Management: KUG1's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yasunori Sakurano
CEO, President & Representative Director1.8yrsno data0.0086% ¥106.3k
Koji Hidaka
MD, Managing Exe Officer1.7yrsno data0.0049% ¥61.2k
Susumu Ogawa
Senior MD0yrsno data0.0047% ¥58.5k
Yoshiaki Ogawa
Senior MD0yrsno data0.0069% ¥85.1k
Yoshihiko Kato
Sr. MD, Sr. Managing Exec. Officer0yrsno data0.0043% ¥53.2k
Yasushi Higuchi
Chairperson1.8yrsno data0.011% ¥130.4k
Masaaki Ayukawa
Company Auditor5.7yrsno data0.0022% ¥26.6k
Koichi Hironishi
Outside Director4.7yrsno data0.0024% ¥29.2k
Mikie Yumoto
Director3.7yrsno data0.0024% ¥29.2k
Konishi Junji
Full-Time Corporate Auditor2.7yrsno datano data

3.7yrs

Average Tenure

62yo

Average Age

Experienced Board: KUG1's board of directors are considered experienced (3.7 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

Kumagai Gumi Co.,Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kumagai Gumi Co.,Ltd.
  • Ticker: KUG1
  • Exchange: DB
  • Founded: 1898
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: JP¥148.636b
  • Listing Market Cap: JP¥1.239b
  • Shares outstanding: 46.59m
  • Website: https://www.kumagaigumi.co.jp

Number of Employees


Location

  • Kumagai Gumi Co.,Ltd.
  • 2-1, Tsukudocho
  • Shinjuku-ku
  • Tokyo
  • 162-8557
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1861TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJan 1992
KUG1DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1992

Biography

Kumagai Gumi Co., Ltd. operates as a construction company in Japan and internationally. The company constructs roads and bridges, railways, tunnels, airports/marine ports, and dams, as well as residential and government office buildings. It also engages in the production of asphalt mixture and the paving of roads, airports, ports, bridges, etc.; building renovation business, including building survey/diagnosis, antiseismic diagnosis and reinforcement, and renovation plans; construction of semiconductor plants and golf courses; and manufacture of steel products for shield tunnels and construction machinery. In addition, the company provides construction and building plans, and applications for projects; construction education to universities and construction companies; technical support services; and insurance agency services, as well as operates as a technology trading company for construction industry. Further, it offers waste, construction equipment energy conservation, reusable energy production, and soil contamination restoration technologies. Kumagai Gumi Co., Ltd. was founded in 1898 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 Analysis2020/02/20 20:58
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.