# Kanadevia (7004.JP)

Canonical: https://gigainvestors.com/s/7004.JP

Analysis as of: 2026-10-15T07:11:11.474Z. Financial observations: FY2013–FY2026.

Listing currency: JPY. Reporting currency: JPY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: JPY 1,069.00 per share; close as of 2026-10-15.

Estimated value: low JPY 1,644.17 per share, central JPY 1,841.52 per share, high JPY 2,077.70 per share. Buy at or below the central value JPY 1,841.52 per share. Valuation as of 2026-10-15T07:11:11.474Z; scenarios are not confidence intervals.

Expected annual return: 18.3% at the stated quote. About 18.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; JP 10-year bond 2.9% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.31×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.04×

- FY2018: 0.02×

- FY2019: 0.02×

- FY2020: 0.03×

- FY2021: 0.04×

- FY2022: 0.04×

- FY2023: 0.04×

- FY2024: 0.04×

- FY2025: 0.04×

- FY2026: 0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 5.8%

- ROIC, second-lowest year: 2.8%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 16.9%

- Recent gross margin (lower of latest and 3-year median): 16.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.7%

- ROIC including acquisitions, ten-year median: 3.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.9%

- FY2018: 2.1%

- FY2019: 2.8%

- FY2020: 5.2%

- FY2021: 5.7%

- FY2022: 6.7%

- FY2023: 12.2%

- FY2024: 10.8%

- FY2025: 10.6%

- FY2026: 4.5%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.96×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: JPY 73B

- Net income, five-year total: JPY 76B

- Return on incremental invested capital: 0.6%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -1.5 pp

- Working capital / revenue, final three-year average: 34.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.18×

- FY2023: 1.12×

- FY2024: 1.00×

- FY2025: 0.82×

- FY2026: 0.81×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 2.8% vs 10.6%

- Per-share earnings: 34.79 to 112.74 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: JPY 63B

- Cumulative retained earnings: JPY 65B

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 15.8%

- Per-share value change: JPY 77.95

- Per-share value, starting three-year median: JPY 34.79

- Per-share value, ending three-year median: JPY 112.74

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: JPY 58B

- Cumulative net income, 10 years: JPY 96B

- ROIC, first three-year median: 2.8%

- ROIC, last three-year median: 10.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: JPY 34.79

- FY2018: JPY 12.88

- FY2019: JPY 32.31

- FY2020: JPY 13.04

- FY2021: JPY 25.26

- FY2022: JPY 46.87

- FY2023: JPY 92.43

- FY2024: JPY 112.74

- FY2025: JPY 131.33

- FY2026: JPY 66.20

### accounting: pass

- Sloan accruals: -0.1%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.05×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.32×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -2.9%

- FY2018: 1.4%

- FY2019: 2.5%

- FY2020: -7.5%

- FY2021: -4.3%

- FY2022: -4.1%

- FY2023: -2.6%

- FY2024: 3.5%

- FY2025: -0.4%

- FY2026: -0.1%

## Holders

## Price story

Down 23% since May 2026 · sales +5.7%

Story as of 2026-10-16T10:00:14.567Z; price observation 2026-10-15.

Price needs cash profits to shrink 8.3% a year for ten years

### Sales · FY2025–2026

sales +5.7%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGOR.pdf; observed 2026-06-22.

- FY2017: JPY 399B 

- FY2018: JPY 376B 

- FY2019: JPY 378B 

- FY2020: JPY 402B 

- FY2021: JPY 409B 

- FY2022: JPY 442B 

- FY2023: JPY 493B 

- FY2024: JPY 556B 

- FY2025: JPY 611B 

- FY2026: JPY 645B 

### Gross margin · FY2026

gross margin 16.9%; source https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGOR.pdf; observed 2026-06-22.

- FY2017: 16.3% 

- FY2018: 15.8% 

- FY2019: 16.2% 

- FY2020: 17.2% 

- FY2021: 17.8% 

- FY2022: 16.3% 

- FY2023: 16.9% 

- FY2024: 17.1% 

- FY2025: 18.7% 

- FY2026: 16.9% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Annual sales are JPY 645.2 billion.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGOR.pdf (filed 2026-06-22); FY2026: revenue 645222000000; grossProfit 109066000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 16.9% to 18.7% during 2024–26; it earns 5.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2024: grossProfit / revenue = 17.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2025: grossProfit / revenue = 18.7%.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGOR.pdf (filed 2026-06-22); FY2026: grossProfit / revenue = 16.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); 10-year return on capital observations [[2017,0.058938988515461255],[2018,0.020715021769507583],[2019,0.028465810787523697],[2020,0.05234623657160747],[2021,0.05699721489716762],[2022,0.06704216657023734],[2023,0.1219727918222794],[2024,0.10812546844234357],[2025,0.10556922264543128],[2026,0.04486460031425828]]; median 0.05796810170631444. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 16% gross margin through 2022 cost inflation.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGOR.pdf (filed 2026-06-22); Gross margin observations: [[2021,0.17820955867956298],[2022,0.16330803513831013],[2023,0.16918886444269443]]; range within 2 percentage points.

### Where the cash goes

Spends 83.4% of cash earnings on expansion; earns 0.6% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2017: growth capex 479000000; upkeep 8536000000; owner earnings 5864000000. Growth capex / owner earnings = 0.08168485675306958.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2019: growth capex 468000000; upkeep 8940000000; owner earnings 5445000000. Growth capex / owner earnings = 0.0859504132231405.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2020: growth capex 1380000000; upkeep 10090000000; owner earnings 2197000000. Growth capex / owner earnings = 0.6281292671825216.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2021: growth capex 1690000000; upkeep 10241000000; owner earnings 4258000000. Growth capex / owner earnings = 0.39689995302959136.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2022: growth capex 0; upkeep 9232000000; owner earnings 9330000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2023: growth capex 0; upkeep 8641000000; owner earnings 17451000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2024: growth capex 967000000; upkeep 11134000000; owner earnings 18999000000. Growth capex / owner earnings = 0.050897415653455444.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); FY2025: growth capex 12442883935.849054; upkeep 15991116064.150946; owner earnings 18024883935.849052. Growth capex / owner earnings = 0.6903170073179691.

- Source: https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGOR.pdf (filed 2026-06-22); FY2026: growth capex 7516281890.311737; upkeep 17756718109.688263; owner earnings 9015281890.311737. Growth capex / owner earnings = 0.8337267743551204.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); Incremental return on capital 0.005576599870426022, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); Dividend observations: [[2017,2022000000],[2018,2022000000],[2019,2022000000],[2020,2022000000],[2021,2022000000],[2022,2022000000],[2023,2022000000],[2024,3033000000],[2025,3876000000],[2026,4212000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price assumes cash profits shrink 8.3% yearly over ten years; actual growth was 4.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-22); Ten-year compound average after fade. Initial solved rate -0.12835109301189457. Price 1069; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 34.96 → FY2026 53.58818902205594. Closing-price date 2026-10-15.

## Monthly share-price history (JPY per share)

- 2016-11: JPY 607.00 per share

- 2016-12: JPY 611.00 per share

- 2017-01: JPY 594.00 per share

- 2017-02: JPY 656.00 per share

- 2017-03: JPY 634.00 per share

- 2017-04: JPY 647.00 per share

- 2017-05: JPY 523.00 per share

- 2017-06: JPY 553.00 per share

- 2017-07: JPY 581.00 per share

- 2017-08: JPY 545.00 per share

- 2017-09: JPY 597.00 per share

- 2017-10: JPY 596.00 per share

- 2017-11: JPY 582.00 per share

- 2017-12: JPY 593.00 per share

- 2018-01: JPY 591.00 per share

- 2018-02: JPY 542.00 per share

- 2018-03: JPY 545.00 per share

- 2018-04: JPY 595.00 per share

- 2018-05: JPY 558.00 per share

- 2018-06: JPY 522.00 per share

- 2018-07: JPY 523.00 per share

- 2018-08: JPY 478.00 per share

- 2018-09: JPY 475.00 per share

- 2018-10: JPY 429.00 per share

- 2018-11: JPY 390.00 per share

- 2018-12: JPY 334.00 per share

- 2019-01: JPY 361.00 per share

- 2019-02: JPY 344.00 per share

- 2019-03: JPY 340.00 per share

- 2019-04: JPY 344.00 per share

- 2019-05: JPY 357.00 per share

- 2019-06: JPY 395.00 per share

- 2019-07: JPY 392.00 per share

- 2019-08: JPY 340.00 per share

- 2019-09: JPY 351.00 per share

- 2019-10: JPY 368.00 per share

- 2019-11: JPY 420.00 per share

- 2019-12: JPY 412.00 per share

- 2020-01: JPY 414.00 per share

- 2020-02: JPY 375.00 per share

- 2020-03: JPY 348.00 per share

- 2020-04: JPY 360.00 per share

- 2020-05: JPY 410.00 per share

- 2020-06: JPY 393.00 per share

- 2020-07: JPY 371.00 per share

- 2020-08: JPY 419.00 per share

- 2020-09: JPY 444.00 per share

- 2020-10: JPY 419.00 per share

- 2020-11: JPY 402.00 per share

- 2020-12: JPY 570.00 per share

- 2021-01: JPY 597.00 per share

- 2021-02: JPY 677.00 per share

- 2021-03: JPY 895.00 per share

- 2021-04: JPY 826.00 per share

- 2021-05: JPY 717.00 per share

- 2021-06: JPY 717.00 per share

- 2021-07: JPY 788.00 per share

- 2021-08: JPY 797.00 per share

- 2021-09: JPY 861.00 per share

- 2021-10: JPY 890.00 per share

- 2021-11: JPY 841.00 per share

- 2021-12: JPY 798.00 per share

- 2022-01: JPY 758.00 per share

- 2022-02: JPY 790.00 per share

- 2022-03: JPY 746.00 per share

- 2022-04: JPY 705.00 per share

- 2022-05: JPY 787.00 per share

- 2022-06: JPY 854.00 per share

- 2022-07: JPY 830.00 per share

- 2022-08: JPY 884.00 per share

- 2022-09: JPY 857.00 per share

- 2022-10: JPY 859.00 per share

- 2022-11: JPY 896.00 per share

- 2022-12: JPY 826.00 per share

- 2023-01: JPY 856.00 per share

- 2023-02: JPY 905.00 per share

- 2023-03: JPY 866.00 per share

- 2023-04: JPY 840.00 per share

- 2023-05: JPY 814.00 per share

- 2023-06: JPY 949.00 per share

- 2023-07: JPY 935.00 per share

- 2023-08: JPY 863.00 per share

- 2023-09: JPY 839.00 per share

- 2023-10: JPY 781.00 per share

- 2023-11: JPY 901.00 per share

- 2023-12: JPY 937.00 per share

- 2024-01: JPY 917.00 per share

- 2024-02: JPY 1,230.00 per share

- 2024-03: JPY 1,326.00 per share

- 2024-04: JPY 1,226.00 per share

- 2024-05: JPY 1,110.00 per share

- 2024-06: JPY 1,052.00 per share

- 2024-07: JPY 1,101.00 per share

- 2024-08: JPY 964.00 per share

- 2024-09: JPY 991.00 per share

- 2024-10: JPY 1,056.00 per share

- 2024-11: JPY 937.00 per share

- 2024-12: JPY 985.00 per share

- 2025-01: JPY 1,072.00 per share

- 2025-02: JPY 909.00 per share

- 2025-03: JPY 915.00 per share

- 2025-04: JPY 914.00 per share

- 2025-05: JPY 945.00 per share

- 2025-06: JPY 975.00 per share

- 2025-07: JPY 1,023.00 per share

- 2025-08: JPY 991.00 per share

- 2025-09: JPY 1,023.00 per share

- 2025-10: JPY 1,145.00 per share

- 2025-11: JPY 999.00 per share

- 2025-12: JPY 950.00 per share

- 2026-01: JPY 1,022.00 per share

- 2026-02: JPY 1,088.00 per share

- 2026-03: JPY 1,007.00 per share

- 2026-04: JPY 1,194.00 per share

- 2026-05: JPY 1,388.00 per share

- 2026-06: JPY 1,269.00 per share

- 2026-07: JPY 1,188.00 per share

- 2026-08: JPY 1,186.00 per share

- 2026-09: JPY 1,173.00 per share

- 2026-10: JPY 1,120.00 per share

## Annual estimated value (JPY per share)

- FY2020: low JPY 583.04 per share, central JPY 634.87 per share, high JPY 703.88 per share

- FY2021: low JPY 508.08 per share, central JPY 546.15 per share, high JPY 596.83 per share

- FY2022: low JPY 644.91 per share, central JPY 686.08 per share, high JPY 740.89 per share

- FY2023: low JPY 975.22 per share, central JPY 1,129.54 per share, high JPY 1,243.85 per share

- FY2024: low JPY 1,219.01 per share, central JPY 1,471.09 per share, high JPY 1,659.19 per share

- FY2025: low JPY 1,703.29 per share, central JPY 2,146.03 per share, high JPY 2,452.79 per share

- FY2026: low JPY 1,644.35 per share, central JPY 1,841.72 per share, high JPY 2,077.92 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T07:11:11.474Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original EDINET filing](https://disclosure2dl.edinet-fsa.go.jp/searchdocument/pdf/S100YGOR.pdf); period 2026-03-31, filed 2026-06-22.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.