CANDEAL Co., Ltd. (1446) AI Stock Analysis

• Market Cap: ¥6.20B
• Dividend Yield: 1.44%
• Average Volume (3M): 4.91K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 0.27
• Revenue Growth: 4.81%
• EPS Growth: 42.00%
• Country: JP
• Employees: 568
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 5.41
• Shares Outstanding: 10,734,200
• 10 Day Avg. Volume: 6,020
• 30 Day Avg. Volume: 4,906
• PEG Ratio: 0.61
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 13.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ¥575.00 ▲(2.50% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

CANDEAL Co., Ltd. receives an overall stock score of 58, driven primarily by moderate financial performance with strong revenue growth but low profitability and inconsistent cash flows. Technical indicators show a neutral stance, while valuation appears slightly stretched with a high P/E ratio, partially offset by a modest dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive market position and the ability to attract and retain clients, supporting long-term business expansion.

Balance Sheet Health

A lower debt-to-equity ratio enhances financial stability and reduces risk, providing a solid foundation for future growth and investment.

Cash Flow Generation

Strong cash flow generation ensures liquidity and financial flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.

Negative Factors

Profit Margin Concerns

Low operating margins suggest limited efficiency, which could hinder profitability and competitiveness if not addressed through cost management and operational improvements.

Free Cash Flow Volatility

Volatility in free cash flow can impact the company's ability to fund operations and investments consistently, posing a risk to financial stability.

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, which could affect long-term profitability if not managed effectively.

CANDEAL Co., Ltd. Business Overview & Revenue Model

Company Description

CANDEAL CO.,Ltd, through its subsidiaries, operates in the construction industry in Japan. The company offers repair and maintenance services for the housing environment in the construction industry; and repair, interior construction, inspection, and lifting services for the residential and commercial environments. It is also involved in the trading and distribution of repair and interior decoration materials. The company was formerly known as Burn Holdings Co., Ltd. and changed its name to CANDEAL CO.,Ltd in October 2016. CANDEAL CO.,Ltd was founded in 2014 and is headquartered in Tokyo, Japan.

How the Company Makes Money

CANDEAL Co., Ltd. generates revenue primarily through transaction fees charged on trades executed on its platforms. This includes a percentage of each trade made by users, which serves as a significant source of income. Additionally, the company earns revenue from subscription fees for premium services such as advanced market analytics and trading tools. Partnerships with financial institutions and market makers also contribute to its earnings by providing liquidity and enhancing the trading environment on its platforms. Moreover, CANDEAL may engage in revenue-sharing agreements with partners, further diversifying its income streams.

CANDEAL Co., Ltd. Financial Statement Overview

Summary

CANDEAL Co., Ltd. shows a moderate financial profile with a score of 61. Revenue growth is strong at 70.7% in the latest report, and debt-to-equity has improved to 0.41. However, low net profit margins (1.4%) and inconsistent cash flow growth, with a 35.8% decline in 2024, temper the outlook.

Income Statement

CANDEAL Co., Ltd. shows moderate performance in its income statement. Revenue growth has been positive, with a notable 70.7% increase in the latest annual report (2025-09-30), though it fluctuates across prior years. Gross profit margin remains stable at around 34.8%, indicating consistent cost management. However, net profit margin is low at 1.4%, reflecting limited profitability after expenses. EBIT and EBITDA margins are modest at 3.1% and 5.0%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The balance sheet reflects a mixed financial position. The debt-to-equity ratio has improved to 0.41 in the latest report (2025-09-30) from higher levels in prior years, indicating reduced leverage risk. Return on equity stands at a reasonable 6.6%, showing decent returns for shareholders. However, the equity ratio of 47.1% suggests that a significant portion of assets is financed by debt, posing some stability concerns.

Cash Flow

Cash flow performance is adequate but inconsistent. Free cash flow to net income ratio is strong at 0.89 in the latest report (2025-09-30), indicating good conversion of profits to cash. Operating cash flow to net income ratio is lower at 0.14, suggesting some challenges in cash generation from operations. Historical free cash flow growth has been volatile, with a significant decline of 35.8% in 2024, pointing to potential risks in sustaining cash flow stability.

Breakdown	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	13.86B	13.22B	12.31B	11.27B	11.22B
Gross Profit	4.82B	4.69B	4.44B	4.10B	4.07B
EBITDA	693.82M	616.78M	708.35M	571.06M	306.06M
Net Income	196.37M	137.96M	224.55M	105.54M	-72.82M
Balance Sheet
Total Assets	6.28B	6.14B	6.23B	6.48B	7.37B
Cash, Cash Equivalents and Short-Term Investments	1.63B	1.62B	1.62B	1.89B	2.60B
Total Debt	1.22B	1.50B	1.74B	2.52B	2.81B
Total Liabilities	3.32B	3.34B	3.52B	3.96B	4.11B
Stockholders Equity	2.96B	2.80B	2.71B	2.52B	3.26B
Cash Flow
Free Cash Flow	372.85M	355.85M	554.37M	425.45M	-129.88M
Operating Cash Flow	418.64M	377.87M	595.46M	467.77M	-35.52M
Investing Cash Flow	-92.47M	-74.18M	-41.22M	-33.74M	-93.73M
Financing Cash Flow	-315.64M	-303.61M	-830.42M	-1.14B	-725.82M

CANDEAL Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 561.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1446, the sentiment is Neutral. The current price of 561 is below the 20-day moving average (MA) of 586.60, below the 50-day MA of 582.08, and above the 200-day MA of 559.47, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 38.83 is Neutral, neither overbought nor oversold. The STOCH value of 24.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1446.

CANDEAL Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2311	70 Outperform	¥6.92B	16.94	―	3.77%	11.25%	26.01%
4642	70 Outperform	¥8.00B	16.72	―	2.03%	16.10%	-10.63%
6171	69 Neutral	¥5.60B	12.28	―	2.86%	2.87%	55.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1443	61 Neutral	¥4.79B	5.08	―	0.46%	0.58%	25.48%
1446	58 Neutral	¥6.20B	25.92	―	1.44%	4.81%	42.00%
6085	49 Neutral	¥31.75B	-6.03	―	―	78.27%	72.99%