Kumagai Gumi Co.,Ltd.

DB:KUG1 Stock Report

Market Cap: €1.0b

Kumagai GumiLtd Valuation

Is KUG1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of KUG1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: KUG1 (€26.6) is trading below our estimate of fair value (€60.86)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for KUG1?

Key metric: As KUG1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for KUG1. This is calculated by dividing KUG1's market cap by their current earnings.
What is KUG1's PE Ratio?
PE Ratio26.5x
EarningsJP¥6.41b
Market CapJP¥169.77b

Price to Earnings Ratio vs Peers

How does KUG1's PE Ratio compare to its peers?

The above table shows the PE ratio for KUG1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average46x
NCH2 thyssenkrupp nucera KGaA
125.4x35.2%€1.4b
B5A0 BAUER
31.9x38.2%€174.7m
HOT HOCHTIEF
13.5x1.9%€9.7b
OHB OHB
13.1xn/a€915.5m
KUG1 Kumagai GumiLtd
26.5x32.9%€169.8b

Price-To-Earnings vs Peers: KUG1 is good value based on its Price-To-Earnings Ratio (26.5x) compared to the peer average (46x).

Price to Earnings Ratio vs Industry

How does KUG1's PE Ratio compare vs other companies in the European Construction Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
KUG1 26.5xIndustry Avg. 13.5xNo. of Companies21PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: KUG1 is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the European Construction industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is KUG1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

KUG1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.5x
Fair PE Ratio21.4x

Price-To-Earnings vs Fair Ratio: KUG1 is expensive based on its Price-To-Earnings Ratio (26.5x) compared to the estimated Fair Price-To-Earnings Ratio (21.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst KUG1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
€30.68
0%
6.0%€33.34€27.78n/a5
Dec ’25€21.40
€27.72
+29.5%
15.7%€32.26€19.67n/a5
Nov ’25€19.80
€27.72
+40.0%
15.7%€32.26€19.67n/a5
Oct ’25€22.00
€27.72
+26.0%
15.7%€32.26€19.67n/a5
Sep ’25€21.80
€26.34
+20.8%
17.0%€31.67€19.31n/a5
Aug ’25€21.20
€25.20
+18.9%
13.7%€29.75€20.71n/a5
Jul ’25€20.80
€25.20
+21.2%
13.7%€29.75€20.71n/a5
Jun ’25€21.00
€26.56
+26.5%
11.1%€30.05€23.31n/a5
May ’25€24.40
€26.56
+8.8%
11.1%€30.05€23.31n/a5
Apr ’25€25.60
€24.50
-4.3%
14.2%€30.01€19.60n/a5
Mar ’25€23.80
€24.50
+2.9%
14.2%€30.01€19.60n/a5
Feb ’25€23.80
€24.76
+4.0%
14.1%€30.48€19.91n/a5
Jan ’25€22.80
€25.16
+10.3%
15.6%€31.41€20.51n/a4
Dec ’24€21.20
€23.21
+9.5%
10.1%€27.02€19.65€21.405
Nov ’24€23.00
€23.17
+0.7%
12.2%€27.86€20.26€19.805
Oct ’24€22.00
€23.17
+5.3%
12.2%€27.86€20.26€22.005
Sep ’24€21.20
€21.04
-0.8%
8.9%€24.37€18.60€21.805
Aug ’24€20.40
€21.04
+3.1%
8.9%€24.37€18.60€21.205
Jul ’24€19.40
€20.30
+4.6%
5.2%€21.57€18.40€20.805
Jun ’24€19.90
€20.85
+4.7%
7.4%€23.09€18.67€21.005
May ’24€19.10
€21.22
+11.1%
5.8%€22.73€19.54€24.404
Apr ’24€18.10
€21.22
+17.3%
5.8%€22.73€19.54€25.604
Mar ’24€19.20
€20.94
+9.1%
6.4%€22.22€19.09€23.803
Feb ’24€18.30
€21.92
+19.8%
9.7%€24.43€18.68€23.804
Jan ’24€18.40
€20.99
+14.1%
10.4%€24.03€18.38€22.805
Dec ’23€17.60
€20.77
+18.0%
9.6%€23.62€18.41€21.205

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/29 15:04
End of Day Share Price 2024/12/11 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Kumagai Gumi Co.,Ltd. is covered by 7 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Hideaki TeraokaDaiwa Securities Co. Ltd.
Ryou YagiMitsubishi UFJ Morgan Stanley Securities Company Limited
Yoshihiro NakagawaMizuho Securities Co., Ltd.