Kanadevia (TSE:7004) Returned To Profit In Q1, Is The Stock Still Cheap?
Kanadevia (TSE:7004) shares are in focus after the company reported first quarter earnings and held a board meeting on August 6, 2026 to consider extending its share based remuneration trust.
See our latest analysis for Kanadevia.
At a share price of ¥1,246.0, Kanadevia has seen a 30-day share price return of 6.22% but a 90-day share price return that declined 9.64%, while the 1-year total shareholder return of 27.43% and 5-year total shareholder return of 77.44% point to stronger longer term momentum.
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Kanadevia’s share price has moved higher in the short term, yet still sits below both analyst targets and one intrinsic value estimate. So where does fair value really sit within that spread, and how wide is the gap?
Most Popular Narrative: 11.6% Undervalued
Kanadevia's most followed narrative sets a fair value of ¥1,410 per share, compared with the latest close at ¥1,246. That gap is built on specific expectations for future growth, margins and valuation multiples.
The projected increase in order intake from ¥620 billion to ¥680 billion and net sales from ¥570 billion to ¥590 billion indicates expected growth in top-line revenue due to strong project pipelines and market demand. Improvements in the Environmental business segment, particularly from cost management and project progress, are expected to enhance operating income and margins by fostering better efficiency and profitability.
Want to see what sits behind that earnings and margin story? The narrative leans on steadier revenue growth, thicker profit margins and a lower future P/E to make the numbers work.
Result: Fair Value of ¥1,410 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Kanadevia still faces pressure from project cost issues and compliance problems in the Marine Engine business, which could weigh on future orders and profitability.
Find out about the key risks to this Kanadevia narrative.
Next Steps
Given the mix of earnings momentum and operational questions around Kanadevia, this is a good time to act quickly and examine the underlying data yourself. To consider both sides of the story, review the 2 key rewards and 3 important warning signs
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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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