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Kumagai Gumi CoKMGGF +4.60%79 Net-Net Working Capital is $-0.45 as of Mar. 2026. GuruFocus rates KMGGF with a GF Score™ of 79/100 and a GF Value™ of $7.63 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 476 Construction companies, Kumagai Gumi Co ranks worse than 210083.82% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Kumagai Gumi Co's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $-0.45.
The industry rank for Kumagai Gumi Co's Net-Net Working Capital or its related term are showing as below:
KMGGF's Price-to-Net-Net-Working-Capital is not ranked *
in the Construction industry.
Industry Median: 6.345 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Kumagai Gumi Co (OTCPK:KMGGF) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Kumagai Gumi Co Net-Net Working Capital Related Terms
Kumagai Gumi Co Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Kumagai Gumi Co's Net-Net Working Capital can be seen below:
* 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.
KMGGF vs PWR, FIX, EME: Net-Net Working Capital Comparison
For the Engineering & Construction subindustry, Kumagai Gumi Co's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.
Kumagai Gumi Co Price-to-Net-Net-Working-Capital vs Construction Industry
For the Construction industry and Industrials sector, Kumagai Gumi Co's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Kumagai Gumi Co's Price-to-Net-Net-Working-Capital falls into.
* 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-0.45 mean?
Kumagai Gumi Co (KMGGF) has a Net-Net Working Capital of $-0.45 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Kumagai Gumi Co According to the industry distribution chart, Kumagai Gumi Co ranks #999999 out of 476 companies in the Construction industry.
Is Kumagai Gumi Co's Net-Net Working Capital too high?
Kumagai Gumi Co's current Net-Net Working Capital is $-0.45. Based on the distribution chart, Kumagai Gumi Co ranks #999999 out of 476 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Kumagai Gumi Co has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kumagai Gumi Co's Net-Net Working Capital compare to PWR and FIX?
According to the Construction industry distribution chart, Kumagai Gumi Co ranks #999999 out of 476 companies for Net-Net Working Capital. This places Kumagai Gumi Co in the lower half of its industry. The industry median Net-Net Working Capital is 6.35. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Construction company?
The median Net-Net Working Capital among Construction companies is 6.35, based on 476 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Kumagai Gumi Co For the Construction industry, the median Net-Net Working Capital is 6.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kumagai Gumi Co's current Net-Net Working Capital is $-0.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kumagai Gumi Co stock overvalued right now?
Based on GuruFocus' analysis, Kumagai Gumi Co (KMGGF) is currently considered Modestly Overvalued. The stock's GF Value™ is $7.63, compared to a current price of $9.10 — trading 19.3% above its estimated fair value. The current Net-Net Working Capital is $-0.45. Kumagai Gumi Co's overall GF Score™ is 79/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Kumagai Gumi Co (KMGGF), the current Net-Net Working Capital is $-0.45 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kumagai Gumi Co (KMGGF) Overvalued in 2026?
Based on GuruFocus' analysis, Kumagai Gumi Co stock appears to be overvalued.
The current stock price of $9.10 is trading 19.3% above its estimated GF Value™ of $7.63.
GuruFocus considers Kumagai Gumi Co to be Modestly Overvalued.
Key valuation signals for KMGGF:
Net-Net Working Capital: $-0.45
GF Value™: $7.63 vs. price of $9.10 (19.3% above fair value)
No single metric tells the full story. See the KMGGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kumagai Gumi Co Ltd is a Japanese company that provides services in construction and civil engineering. The company analyzes, designs, and supervises complex construction projects. It also offers engineering and technical services throughout the construction process. These projects include roads, railways, airports, water systems, and other public facilities. In addition, the company is engaged in manufacturing and selling construction materials and machinery. Construction activities account for the majority of revenue. The company generates additional revenue from developing residential and commercial complexes and either operating the building or acting as a broker and selling the real estate.
79GF Score
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