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Kamigumi Co (Kamigumi Co) Financial Strength : 9 (As of Dec. 2023)


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What is Kamigumi Co Financial Strength?

Kamigumi Co has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Kamigumi Co Ltd shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Kamigumi Co's Interest Coverage for the quarter that ended in Dec. 2023 was 822.87. Kamigumi Co's debt to revenue ratio for the quarter that ended in Dec. 2023 was 0.07. As of today, Kamigumi Co's Altman Z-Score is 4.66.


Competitive Comparison of Kamigumi Co's Financial Strength

For the Integrated Freight & Logistics subindustry, Kamigumi Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kamigumi Co's Financial Strength Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Kamigumi Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where Kamigumi Co's Financial Strength falls into.



Kamigumi Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Kamigumi Co's Interest Expense for the months ended in Dec. 2023 was $-0 Mil. Its Operating Income for the months ended in Dec. 2023 was $57 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $139 Mil.

Kamigumi Co's Interest Coverage for the quarter that ended in Dec. 2023 is

Interest Coverage=-1*Operating Income (Q: Dec. 2023 )/Interest Expense (Q: Dec. 2023 )
=-1*56.778/-0.069
=822.87

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Kamigumi Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

Kamigumi Co's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 138.907) / 1895.16
=0.07

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Kamigumi Co has a Z-score of 4.66, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.66 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Kamigumi Co  (OTCPK:KMGIF) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Kamigumi Co has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Kamigumi Co Financial Strength Related Terms

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Kamigumi Co (Kamigumi Co) Business Description

Traded in Other Exchanges
Address
4-1-11, Hamabe-dori, Chuo-ku, Hyogo, Kobe, JPN, 651-0083
Kamigumi is a logistics company domiciled in Japan. The company operates harbour transportation services, warehousing facilities, and automobile transportation; handles cargo; and provides air, sea, rail, and road freight services. The company organises operations into three segments: domestic distribution, international distribution, and others. The company derives the vast majority of revenue from its domestic distribution business. The others segment leases real estate and manufactures and sells alcoholic beverages.

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