Kyoritsu Maintenance (TSE:9616) Valuation Check After Ongoing Sales Growth Update

Kyoritsu Maintenance (TSE:9616) just posted its October 2025 preliminary sales, showing both monthly and year to date revenue edging higher compared with last year, providing a useful check on the company’s growth trajectory.

See our latest analysis for Kyoritsu Maintenance.

Even with the latest monthly sales growth, the 90 day share price return of negative 15.73 percent shows momentum has cooled recently. However, the five year total shareholder return of 51.46 percent still points to a solid long term story.

If this update has you rethinking where growth could come from next, it might be worth scanning fast growing stocks with high insider ownership as a way to spot other promising ideas.

With sales still climbing and the share price lagging its five year gains, investors may now be wondering: is Kyoritsu Maintenance trading at an attractive discount, or is the market already pricing in its next leg of growth?

Price-to-Earnings of 15.5x: Is it justified?

On a price-to-earnings ratio of 15.5 times at a last close of ¥2,808, Kyoritsu Maintenance screens as undervalued against both peers and model fair value benchmarks.

The price to earnings multiple compares the current share price with the company’s earnings per share, making it a widely used shorthand for how much investors are willing to pay for each unit of profit. For a hospitality and accommodation operator with an established earnings base, this metric is particularly relevant because it reflects expectations for sustainable profitability rather than one off swings.

For Kyoritsu Maintenance, several cross checks point in the same direction. The stock trades at 15.5 times earnings, below the estimated fair price to earnings ratio of 25.1 times, suggesting the market could be discounting its profit potential more heavily than our fair value framework implies. In addition, the current multiple also sits at a discount to both the Japanese hospitality industry average of 22.9 times and the peer group average of 24.1 times. This reinforces the sense that investors are paying a lower price for each yen of earnings than they typically do for comparable names.

Compared with sector and peer benchmarks, that gap in valuation is striking and highlights room for the market’s pricing to converge towards the higher fair value multiple if earnings continue to grow as forecast. Explore the SWS fair ratio for Kyoritsu Maintenance

Result: Price-to-Earnings of 15.5x (UNDERVALUED)

However, slower revenue growth or a setback in Japan’s travel recovery could stall earnings momentum and prevent the valuation gap from closing.

Find out about the key risks to this Kyoritsu Maintenance narrative.

Another View: Our DCF Model Paints a Different Picture

While earnings multiples point to Kyoritsu Maintenance looking cheap, our DCF model suggests the shares at ¥2,808 sit well above its estimated fair value of about ¥723, implying the stock could be overvalued. Is the market betting on a stronger future than the cash flows support?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Kyoritsu Maintenance for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 906 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Kyoritsu Maintenance Narrative

If you see the numbers differently or want to dig into the details yourself, you can build a custom view in just a few minutes: Do it your way.

A great starting point for your Kyoritsu Maintenance research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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