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Kumagai GumiLtd

DB:KUG1
Snowflake Description

Very undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
KUG1
DB
¥143B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

Kumagai Gumi Co., Ltd. operates as a construction company in Japan and internationally. The last earnings update was 35 days ago. More info.


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KUG1 Share Price and Events
7 Day Returns
1%
DB:KUG1
1.2%
DE Construction
0.3%
DE Market
1 Year Returns
-16.9%
DB:KUG1
-31.6%
DE Construction
-11.7%
DE Market
KUG1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Kumagai GumiLtd (KUG1) 1% 3.9% - -16.9% 8.8% 33.4%
DE Construction 1.2% -5.7% -23.2% -31.6% 1.5% 63.1%
DE Market 0.3% -2.3% -1.1% -11.7% 12.2% 6.1%
1 Year Return vs Industry and Market
  • KUG1 outperformed the Construction industry which returned -31.6% over the past year.
  • KUG1 underperformed the Market in Germany which returned -11.7% over the past year.
Price Volatility
KUG1
Industry
5yr Volatility vs Market
Related Companies

Sorry, no analysis for Kumagai GumiLtd's competitors could be found in our database.

Value

 Is Kumagai GumiLtd undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Kumagai GumiLtd to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Kumagai GumiLtd.

DB:KUG1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:KUG1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Construction Unlevered Beta Simply Wall St/ S&P Global 1
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.004 (1 + (1- 30.86%) (9.01%))
1.045
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.045 * 5.96%)
6.46%

Discounted Cash Flow Calculation for DB:KUG1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Kumagai GumiLtd is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:KUG1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (JPY, Millions) Source Present Value
Discounted (@ 6.46%)
2019 2,515.00 Analyst x1 2,362.49
2020 15,508.00 Analyst x1 13,684.23
2021 17,993.00 Analyst x1 14,914.22
2022 20,504.00 Analyst x1 15,964.97
2023 22,391.61 Est @ 9.21% 16,377.48
2024 23,849.90 Est @ 6.51% 16,386.29
2025 24,953.50 Est @ 4.63% 16,104.90
2026 25,778.83 Est @ 3.31% 15,628.67
2027 26,393.31 Est @ 2.38% 15,030.90
2028 26,851.74 Est @ 1.74% 14,364.68
Present value of next 10 years cash flows ¥140,818.84
DB:KUG1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ¥26,851.74 × (1 + 0.23%) ÷ (6.46% – 0.23%)
¥432,170.94
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ¥432,170.94 ÷ (1 + 6.46%)10
¥231,195.32
DB:KUG1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ¥140,818.84 + ¥231,195.32
¥372,014.15
Equity Value per Share
(JPY)
= Total value / Shares Outstanding
= ¥372,014.15 / 46.54
¥7993.02
DB:KUG1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:KUG1 represents 0.00809x of TSE:1861
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.00809x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (JPY) x Listing Adjustment Factor
= ¥ 7,993.02 x 0.00809
€64.69
Value per share (EUR) From above. €64.69
Current discount Discount to share price of €24.81
= -1 x (€24.81 - €64.69) / €64.69
61.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Kumagai GumiLtd is available for.
Intrinsic value
>50%
Share price is €24.81 vs Future cash flow value of €64.69
Current Discount Checks
For Kumagai GumiLtd to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Kumagai GumiLtd's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Kumagai GumiLtd's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Kumagai GumiLtd's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Kumagai GumiLtd's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:KUG1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in JPY ¥285.47
TSE:1861 Share Price ** TSE (2019-06-17) in JPY ¥3065
Europe Construction Industry PE Ratio Median Figure of 94 Publicly-Listed Construction Companies 11.12x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.7x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Kumagai GumiLtd.

DB:KUG1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSE:1861 Share Price ÷ EPS (both in JPY)

= 3065 ÷ 285.47

10.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kumagai GumiLtd is good value based on earnings compared to the Europe Construction industry average.
  • Kumagai GumiLtd is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Kumagai GumiLtd's expected growth come at a high price?
Raw Data
DB:KUG1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
11.5%per year
Europe Construction Industry PEG Ratio Median Figure of 45 Publicly-Listed Construction Companies 1.23x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

DB:KUG1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.74x ÷ 11.5%

0.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kumagai GumiLtd is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Kumagai GumiLtd's assets?
Raw Data
DB:KUG1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in JPY ¥2,894.39
TSE:1861 Share Price * TSE (2019-06-17) in JPY ¥3065
Europe Construction Industry PB Ratio Median Figure of 131 Publicly-Listed Construction Companies 1.13x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.76x
DB:KUG1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSE:1861 Share Price ÷ Book Value per Share (both in JPY)

= 3065 ÷ 2,894.39

1.06x

* Primary Listing of Kumagai GumiLtd.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Kumagai GumiLtd is good value based on assets compared to the Europe Construction industry average.
X
Value checks
We assess Kumagai GumiLtd's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Construction industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Construction industry average (and greater than 0)? (1 check)
  5. Kumagai GumiLtd has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Kumagai GumiLtd expected to grow at an attractive rate?
  • Kumagai GumiLtd's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Kumagai GumiLtd's earnings growth is positive but not above the Germany market average.
  • Kumagai GumiLtd's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:KUG1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:KUG1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 11.5%
DB:KUG1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 4.7%
Europe Construction Industry Earnings Growth Rate Market Cap Weighted Average 12.9%
Europe Construction Industry Revenue Growth Rate Market Cap Weighted Average 2.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:KUG1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in JPY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:KUG1 Future Estimates Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-03-31 495,600 26,300 1
2023-03-31 480,200 25,600 1
2022-03-31 468,567 25,952 23,600 3
2021-03-31 450,667 23,997 22,433 3
2020-03-31 427,967 21,954 21,100 3
DB:KUG1 Past Financials Data
Date (Data in JPY Millions) Revenue Cash Flow Net Income *
2019-03-31 389,058 -12,398 13,312
2018-12-31 373,924 14,184
2018-09-30 378,519 23,983 14,243
2018-06-30 377,788 15,011
2018-03-31 374,019 17,641 15,783
2017-12-31 366,156 14,965
2017-09-30 357,547 -1,983 15,424
2017-06-30 347,468 16,045
2017-03-31 344,706 8,625 16,433
2016-12-31 340,970 12,236
2016-09-30 334,873 17,852 11,146
2016-06-30 339,393 11,284

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Kumagai GumiLtd's earnings are expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
  • Kumagai GumiLtd's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:KUG1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Kumagai GumiLtd Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:KUG1 Future Estimates Data
Date (Data in JPY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 506.44 532.20 459.21 3.00
2021-03-31 481.40 508.60 444.19 3.00
2020-03-31 452.79 472.10 429.17 3.00
DB:KUG1 Past Financials Data
Date (Data in JPY Millions) EPS *
2019-03-31 285.47
2018-12-31 304.23
2018-09-30 315.32
2018-06-30 350.37
2018-03-31 389.62
2017-12-31 391.73
2017-09-30 413.06
2017-06-30 429.62
2017-03-31 439.92
2016-12-31 327.50
2016-09-30 298.29
2016-06-30 301.95

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Kumagai GumiLtd is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Kumagai GumiLtd's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Kumagai GumiLtd has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Kumagai GumiLtd performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Kumagai GumiLtd's growth in the last year to its industry (Construction).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Kumagai GumiLtd has delivered over 20% year on year earnings growth in the past 5 years.
  • Kumagai GumiLtd's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Kumagai GumiLtd's 1-year earnings growth is negative, it can't be compared to the Europe Construction industry average.
Earnings and Revenue History
Kumagai GumiLtd's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Kumagai GumiLtd Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:KUG1 Past Revenue, Cash Flow and Net Income Data
Date (Data in JPY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 389,058.00 13,312.00 19,065.00
2018-12-31 373,924.00 14,184.00 18,722.00
2018-09-30 378,519.00 14,243.00 18,541.00
2018-06-30 377,788.00 15,011.00 17,854.00
2018-03-31 374,019.00 15,783.00 17,175.00
2017-12-31 366,156.00 14,965.00 16,757.00
2017-09-30 357,547.00 15,424.00 16,266.00
2017-06-30 347,468.00 16,045.00 16,166.00
2017-03-31 344,706.00 16,433.00 15,840.00
2016-12-31 340,970.00 12,236.00 15,660.00
2016-09-30 334,873.00 11,146.00 15,193.00
2016-06-30 339,393.00 11,284.00 14,709.00
2016-03-31 343,647.00 12,092.00 13,090.00
2015-12-31 350,242.00 15,527.00 12,591.00
2015-09-30 358,962.00 13,613.00 12,108.00
2015-06-30 360,565.00 11,705.00 11,741.00
2015-03-31 362,090.00 5,458.00 12,843.00
2014-12-31 364,548.00 3,493.00 11,528.00
2014-09-30 357,780.00 2,513.00 11,185.00
2014-06-30 347,457.00 1,770.00 10,999.00
2014-03-31 328,900.00 4,299.00 10,824.00
2013-12-31 308,628.00 3,373.00 10,776.00
2013-09-30 289,022.00 2,630.00 10,975.00
2013-06-30 270,630.00 253.00 10,691.00
2013-03-31 260,753.00 -1,083.00 10,540.00
2012-12-31 256,378.00 728.00 10,228.00
2012-09-30 257,126.00 -416.00 10,418.00
2012-06-30 262,493.00 795.00 10,957.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Kumagai GumiLtd has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Kumagai GumiLtd used its assets less efficiently than the Europe Construction industry average last year based on Return on Assets.
  • Kumagai GumiLtd's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Kumagai GumiLtd's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Construction industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Kumagai GumiLtd has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Kumagai GumiLtd's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Kumagai GumiLtd's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Kumagai GumiLtd is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Kumagai GumiLtd's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Kumagai GumiLtd's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 22.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Kumagai GumiLtd Company Filings, last reported 2 months ago.

DB:KUG1 Past Debt and Equity Data
Date (Data in JPY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 134,883.00 12,849.00 82,449.00
2018-12-31 130,022.00 13,465.00 86,619.00
2018-09-30 127,872.00 13,638.00 108,107.00
2018-06-30 123,684.00 14,269.00 123,486.00
2018-03-31 126,374.00 14,479.00 108,536.00
2017-12-31 123,043.00 14,076.00 95,978.00
2017-09-30 83,678.00 14,394.00 68,770.00
2017-06-30 80,176.00 14,882.00 86,042.00
2017-03-31 80,288.00 15,421.00 73,930.00
2016-12-31 75,968.00 15,862.00 79,732.00
2016-09-30 69,894.00 16,441.00 78,377.00
2016-06-30 65,708.00 17,149.00 78,138.00
2016-03-31 64,933.00 17,820.00 72,422.00
2015-12-31 64,637.00 17,865.00 57,385.00
2015-09-30 60,283.00 18,458.00 66,851.00
2015-06-30 56,180.00 19,230.00 85,320.00
2015-03-31 53,551.00 19,937.00 71,710.00
2014-12-31 50,543.00 20,298.00 63,072.00
2014-09-30 47,926.00 20,884.00 59,670.00
2014-06-30 44,680.00 20,374.00 76,658.00
2014-03-31 50,461.00 21,161.00 57,651.00
2013-12-31 50,179.00 20,729.00 41,881.00
2013-09-30 48,277.00 20,954.00 44,531.00
2013-06-30 44,905.00 21,679.00 46,087.00
2013-03-31 45,470.00 22,526.00 37,181.00
2012-12-31 43,702.00 22,919.00 22,232.00
2012-09-30 42,914.00 23,730.00 36,093.00
2012-06-30 43,483.00 24,595.00 42,459.00
  • Kumagai GumiLtd's level of debt (9.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (42% vs 9.5% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Kumagai GumiLtd earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Kumagai GumiLtd's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Kumagai GumiLtd has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.92%
Current annual income from Kumagai GumiLtd dividends. Estimated to be 4.63% next year.
If you bought €2,000 of Kumagai GumiLtd shares you are expected to receive €78 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Kumagai GumiLtd's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • Kumagai GumiLtd's dividend is above the markets top 25% of dividend payers in Germany (3.91%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:KUG1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Europe Construction Industry Average Dividend Yield Market Cap Weighted Average of 74 Stocks 3.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:KUG1 Future Dividends Estimate Data
Date (Data in ¥) Dividend per Share (annual) Avg. No. Analysts
2024-03-31
2023-03-31
2022-03-31 151.33 3.00
2021-03-31 144.67 3.00
2020-03-31 130.00 3.00
DB:KUG1 Past Annualized Dividends Data
Date (Data in ¥) Dividend per share (annual) Avg. Yield (%)
2019-05-13 120.000 4.032
2018-06-28 100.000 3.027
2018-05-14 100.000 2.634
2017-06-29 70.000 2.088
2017-05-12 70.000 2.068
2016-06-29 40.000 1.361
2016-05-13 40.000 1.398
2015-06-26 20.000 0.601
2015-05-14 20.000 0.543
2010-02-12 0.000 0.000
2009-11-12 0.000 0.000
2009-08-06 0.000 0.000
2009-06-26 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Kumagai GumiLtd has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Kumagai GumiLtd only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Kumagai GumiLtd's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Kumagai GumiLtd's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Kumagai GumiLtd afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Kumagai GumiLtd has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Kumagai GumiLtd's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Yasushi Higuchi
AGE 66
TENURE AS CEO 6 years
CEO Bio

Mr. Yasushi Higuchi has been the Executive President at Kumagai Gumi Co. Ltd. since June 2013. Mr. Higuchi serves as President of GAEART TK Co. Ltd. Mr. Higuchi served as General Manager of Construction Business Division and Design General Manager of Construction Business Division at Kumagai Gumi Co. Ltd. since April 2013. He served as Senior Managing Executive Officer and Manager of Kansai Branch at of Kumagai Gumi Co. Ltd. He served as the President of K&E Co Ltd., a subsidiary of Kumagai Gumi Co. Ltd. Mr. Higuchi has been a Representative Director of Kumagai Gumi Co. Ltd. since June 2013.

CEO Compensation
  • Insufficient data for Yasushi to compare compensation growth.
  • Insufficient data for Yasushi to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Kumagai GumiLtd management team in years:

6
Average Tenure
61
Average Age
  • The average tenure for the Kumagai GumiLtd management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Yasushi Higuchi

TITLE
Executive President & Representative Director
AGE
66
TENURE
6 yrs

Toshiaki Hotta

TITLE
Executive VP
AGE
64

Koji Hidaka

TITLE
GM-Admin. Div.

Shin Ogawa

TITLE
Senior MD
AGE
61
TENURE
2.2 yrs

Yasunori Sakurano

TITLE
Senior MD
AGE
61
TENURE
8.2 yrs

Akira Yamazaki

TITLE
Managing Executive Officer & Head of Sales Division - Engineering Works Division
AGE
60
TENURE
8.2 yrs

Satoshi Shibukawa

TITLE
Senior Managing Executive Officer & Head of Tohoku Branch

Hiroshi Iida

TITLE
Managing Executive Officer & Head of Urban Redevelopment Office

Yoshiaki Ogawa

TITLE
Senior MD
AGE
60
TENURE
2.2 yrs

Masahiko Takashima

TITLE
Executive VP
Board of Directors Tenure

Average tenure and age of the Kumagai GumiLtd board of directors in years:

6
Average Tenure
64.5
Average Age
  • The tenure for the Kumagai GumiLtd board of directors is about average.
Board of Directors

Yasushi Higuchi

TITLE
Executive President & Representative Director
AGE
66
TENURE
6 yrs

Shin Ogawa

TITLE
Senior MD
AGE
61

Yasunori Sakurano

TITLE
Senior MD
AGE
61
TENURE
7 yrs

Yoshiaki Ogawa

TITLE
Senior MD
AGE
60

Yoshihiko Kato

TITLE
Sr. MD, Sr. Managing Exec. Officer
AGE
60

Koichi Hironishi

TITLE
Outside Director
AGE
73
TENURE
4 yrs

Mikie Yumoto

TITLE
External Director
AGE
71

Takashi Kakimi

TITLE
External Auditor
AGE
76
TENURE
11 yrs

Tsukasa Yoshikawa

TITLE
Standing Corporate Auditor
AGE
63
TENURE
6 yrs

Masaaki Ayukawa

TITLE
Outside Auditor
AGE
73
TENURE
5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Kumagai GumiLtd's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Kumagai GumiLtd has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Kumagai Gumi Co., Ltd. operates as a construction company in Japan and internationally. The company constructs roads and bridges, railway stations and tunnels, energy facilities, sewage and water projects, offices, residential buildings, hotels, government offices, hospitals, factories, educational facilities, exhibitions, skyscrapers, and airports. It also undertakes other civil engineering and architecture works. In addition, the company is involved in the production and sale of construction machinery and materials; construction of underground diaphragm walls and noiseless vibration-free piles; installation of building equipment; and consulting and reform building businesses. Kumagai Gumi Co., Ltd. was founded in 1898 and is headquartered in Tokyo, Japan.

Details
Name: Kumagai Gumi Co.,Ltd.
KUG1
Exchange: DB
Founded: 1898
¥1,172,887,541
46,542,381
Website: http://www.kumagaigumi.co.jp
Address: Kumagai Gumi Co.,Ltd.
2-1, Tsukudo-cho,
Shinjuku-ku,
Tokyo,
162-8557,
Japan
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSE 1861 Common Shares The Tokyo Stock Exchange JP JPY 06. Jan 1992
DB KUG1 Common Shares Deutsche Boerse AG DE EUR 06. Jan 1992
Number of employees
Current staff
Staff numbers
3,892
Kumagai GumiLtd employees.
Industry
Construction and Engineering
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 20:49
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/07
Last earnings filing: 2019/05/13
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.