Yurtec Corporation (1934) AI Stock Analysis

• Market Cap: ¥186.06B
• Dividend Yield: 2.87%
• Average Volume (3M): 114.66K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.77
• Revenue Growth: 6.66%
• EPS Growth: 46.38%
• Country: JP
• Employees: 5,809
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 68.92
• Shares Outstanding: 69,191,460
• 10 Day Avg. Volume: 104,330
• 30 Day Avg. Volume: 114,663
• PEG Ratio: 0.16
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 10.79
• 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: 68 Neutral
• Price Target: ¥3,273.00 ▲(18.89% Upside)

Yurtec Corporation's strong financial performance is the most significant factor contributing to its overall stock score, supported by consistent revenue growth and robust profitability margins. The valuation is reasonable, with a fair P/E ratio and an attractive dividend yield. However, technical analysis indicates potential short-term weakness, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Cash flow generation

Strong operating cash conversion and near‑par free cash flow show the business consistently converts earnings into cash. This durable cash generation supports capex, dividends, and selective M&A, reducing funding risk and enabling steady investment over multiple quarters.

Balance sheet strength

Very low leverage and a high equity ratio provide long-term financial flexibility. This structural strength lowers refinancing risk, keeps financing costs manageable, and gives capacity to fund projects or absorb cyclical downturns without sacrificing strategic investment plans.

Improving profit margins

Consistent revenue growth with rising gross and net margins indicates improving operational efficiency and pricing power. Sustained margin expansion enhances long‑term profitability and cash flow, strengthening the firm's ability to reinvest and fund strategic priorities over coming quarters.

Negative Factors

Low net profitability

Despite improvement, a sub‑5% net margin limits the firm's capacity to absorb cost shocks and fund growth internally. Over multiple quarters, narrow net profitability constrains retained earnings accumulation and reduces leeway for higher investment or buffer against downturns.

Modest ROE

An ROE of ~8% reflects only moderate returns on shareholder capital. Persistently modest ROE can indicate limited capital efficiency versus peers and may hinder long‑term shareholder value creation unless the company maintains sustained margin and growth improvements.

Rising liabilities to monitor

A noted uptick in total liabilities, even from a low base, could pressure future leverage and interest costs if it continues. Over a multi‑quarter horizon, rising liabilities may reduce financial flexibility and increase funding costs, warranting ongoing monitoring by management.

Yurtec Corporation Business Overview & Revenue Model

Company Description

Yurtec Corporation operates as a facility engineering company in Japan and internationally. It undertakes construction, maintenance, and repair works of electric power equipment; electric, air conditioning, water supply and drainage, and information communication equipment works at various facilities; and civil engineering, construction, and renovation works. The company provides its services to office buildings, factories, public facilities, hospitals, schools, and shopping malls, private companies, and electrical power companies. Yurtec Corporation was incorporated in 1944 and is headquartered in Sendai, Japan.

How the Company Makes Money

Yurtec Corporation generates revenue primarily through its construction and engineering services, which involve contracts for large-scale infrastructure projects. The company earns money by bidding on public and private sector projects, where it provides comprehensive services from design to execution. Key revenue streams include long-term contracts for civil engineering projects, such as roads, bridges, and water supply systems, as well as specialized services in environmental engineering and urban development. Additionally, Yurtec benefits from partnerships with government entities and private construction firms, enabling access to a broader range of projects and securing stable income through repeat business and collaborative ventures.

Yurtec Corporation Financial Statement Overview

Summary

Yurtec Corporation demonstrates a solid financial performance with consistent revenue growth, strong profitability margins, and a stable balance sheet. The company's effective cash flow management further strengthens its financial position, making it well-positioned to pursue future growth opportunities while mitigating financial risks. The low debt levels and efficient capital deployment underscore its financial resilience in the engineering and construction industry.

Income Statement

Yurtec Corporation has demonstrated a robust growth trajectory with total revenue rising consistently over the past years, notably a 5.8% increase in the most recent period. The gross profit margin has remained strong, improving to 15.37% in 2025 from 13.28% in 2024. The net profit margin also improved significantly to 4.66% from 3.09%, indicating enhanced efficiency in managing operational costs. EBIT and EBITDA margins have shown favorable trends, reflecting sound operational management.

Balance Sheet

The company maintains a solid financial structure with a debt-to-equity ratio of 0.06, reflecting low leverage and financial risk. The return on equity (ROE) has improved to 8.11%, indicating effective use of shareholder funds. The equity ratio stands at a healthy 63.23%, showcasing strong financial stability. However, the slight increase in total liabilities should be monitored for potential impacts on future leverage.

Cash Flow

Yurtec's cash flow position is strong, with a significant increase in operating cash flow to net income ratio of 1.26, up from 1.04 in the previous year. Free cash flow continues to grow, supported by controlled capital expenditures, resulting in a free cash flow to net income ratio of 0.92. The company has shown the ability to generate sufficient cash to support its operations and growth initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	264.20B	257.20B	243.17B	227.37B	225.32B	197.09B
Gross Profit	41.43B	39.55B	32.29B	30.39B	29.38B	26.72B
EBITDA	23.24B	22.10B	16.62B	15.55B	15.10B	13.44B
Net Income	12.25B	11.98B	7.51B	6.56B	6.70B	5.76B
Balance Sheet
Total Assets	214.85B	233.55B	231.48B	221.40B	216.02B	200.12B
Cash, Cash Equivalents and Short-Term Investments	52.10B	49.96B	44.89B	46.27B	34.00B	41.01B
Total Debt	8.13B	8.24B	6.92B	8.26B	11.06B	7.31B
Total Liabilities	69.75B	85.84B	89.07B	86.91B	86.47B	76.21B
Stockholders Equity	145.04B	147.65B	142.34B	134.43B	129.50B	123.86B
Cash Flow
Free Cash Flow	0.00	11.08B	1.71B	8.87B	7.03B	2.03B
Operating Cash Flow	0.00	15.08B	7.80B	9.69B	7.93B	2.65B
Investing Cash Flow	0.00	-5.80B	4.32B	-5.30B	-9.81B	-4.62B
Financing Cash Flow	0.00	-6.84B	-3.37B	-5.45B	-1.46B	-3.06B

Yurtec Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2753.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1934, the sentiment is Negative. The current price of 2753 is below the 20-day moving average (MA) of 2901.60, below the 50-day MA of 2799.26, and above the 200-day MA of 2425.59, indicating a neutral trend. The MACD of 9.48 indicates Positive momentum. The RSI at 35.24 is Neutral, neither overbought nor oversold. The STOCH value of 16.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:1934.

Yurtec Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1946	77 Outperform	¥196.34B	12.14	―	3.09%	3.75%	87.00%
1939	77 Outperform	¥80.74B	14.97	―	4.38%	-0.84%	-1.80%
1952	73 Outperform	¥156.36B	12.69	―	2.81%	8.83%	49.49%
1945	73 Outperform	¥58.53B	16.28	―	2.95%	-7.98%	37.92%
1934	68 Neutral	¥186.06B	14.21	―	2.87%	6.66%	46.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Yurtec Corporation Corporate Events

Yurtec Lifts Profits and Strengthens Balance Sheet While Maintaining FY2026 Outlook

Yurtec Corporation reported modest top-line growth but strong profit expansion for the nine months ended December 31, 2025, with net sales up 1.4% year on year to ¥184.4 billion, operating profit rising 28.5% to ¥12.3 billion, and profit attributable to owners of parent increasing 16.9% to ¥8.0 billion; earnings per share climbed to ¥115.91. The company’s financial position also improved, with the equity ratio strengthening to 69.7% and net assets rising to ¥150.4 billion, while it maintained its full-year forecast for the fiscal year ending March 31, 2026, targeting ¥267.0 billion in net sales and ¥12.2 billion in profit attributable to owners of parent, alongside a planned annual dividend of ¥72.00 per share, signaling stable shareholder returns and steady business performance.

The most recent analyst rating on (JP:1934) stock is a Buy with a Yen3506.00 price target. To see the full list of analyst forecasts on Yurtec Corporation stock, see the JP:1934 Stock Forecast page.