Kanto Denka Kogyo Co., Ltd.

TSE:4047 Stock Report

Market Cap: JP¥62.7b

Kanto Denka Kogyo Valuation

Is 4047 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 4047 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4047 (¥1091) is trading below our estimate of fair value (¥2289.48)

Significantly Below Fair Value: 4047 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4047?

Key metric: As 4047 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 4047. This is calculated by dividing 4047's market cap by their current revenue.
What is 4047's PS Ratio?
PS Ratio1x
SalesJP¥61.19b
Market CapJP¥62.69b

Price to Sales Ratio vs Peers

How does 4047's PS Ratio compare to its peers?

The above table shows the PS ratio for 4047 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.7x
3.6x9.4%JP¥63.3b
4362 Nippon Fine Chemical
1.6x5.5%JP¥54.9b
4008 Sumitomo Seika Chemicals Company
0.4xn/aJP¥62.9b
4365 Matsumoto Yushi-SeiyakuLtd
1.2xn/aJP¥51.9b
4047 Kanto Denka Kogyo
1x11.3%JP¥62.7b

Price-To-Sales vs Peers: 4047 is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (1.7x).


Price to Sales Ratio vs Industry

How does 4047's PS Ratio compare vs other companies in the JP Chemicals Industry?

1 CompanyPrice / SalesEstimated GrowthMarket Cap
7886 Yamato Mobility & Mfg.Ltd
0.08xn/aUS$8.35m
No more companies available in this PS range
4047 1.0xIndustry Avg. 0.5xNo. of Companies24PS00.40.81.21.62+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 4047 is expensive based on its Price-To-Sales Ratio (1x) compared to the JP Chemicals industry average (0.5x).


Price to Sales Ratio vs Fair Ratio

What is 4047's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

4047 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio0.5x

Price-To-Sales vs Fair Ratio: 4047 is expensive based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


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