Yurtec Corporation (1934) AI Stock Analysis

• Market Cap: ¥180.31B
• Dividend Yield: 2.87%
• Average Volume (3M): 114.66K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.87
• 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): 211.1
• Revenue Forecast (FY): ¥271.00B

• Rating: 68 Neutral
• Price Target: ¥3,349.00 ▲(21.65% Upside)
• Action: Downgraded Date: 10/23/25
• Date: Action: Downgraded 10/23/25

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

Strong cash generation

Consistently strong operating cash conversion and growing free cash flow provide durable internal funding for capex, dividends and deleveraging. This reduces reliance on external financing, supports capital allocation choices, and improves resilience through industry cycles over the next several months.

Low leverage and stable balance sheet

Very low debt and a high equity ratio give Yurtec structural financial flexibility to invest in projects, absorb downturns, and maintain credit capacity. This durable capital structure lowers default risk and supports steady execution of engineering projects and strategic initiatives for months ahead.

Improving profitability and revenue

Simultaneous revenue growth and margin expansion indicate improving operational efficiency and pricing power. Sustained margin gains enhance cash generation and scalability, enabling reinvestment into core business areas and supporting longer-term profitability beyond short-term project cycles.

Negative Factors

Modest ROE

An ROE near 8% is modest for long-term shareholder value creation; while improving, it suggests limited capital efficiency versus higher-return peers. If ROE remains at this level, growth financed through equity may yield only modest incremental returns over the medium term.

Modest revenue growth rate

Single-digit organic revenue growth constrains the pace of scale benefits and can limit long-term earnings leverage. In engineering and construction, slower topline growth increases dependence on margin improvements and cost control to drive profit growth, raising execution risk.

Slight rise in total liabilities

A recent uptick in liabilities, though small, introduces a structural risk if the trend continues: higher interest exposure or cash demands could reduce flexibility. Persistent liability growth could erode the current low-leverage buffer and constrain investment capacity over several quarters.

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	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
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	22.73B	22.10B	16.62B	15.55B	15.10B	13.39B
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	201.01B
Cash, Cash Equivalents and Short-Term Investments	52.10B	50.41B	45.74B	46.98B	51.64B	51.86B
Total Debt	8.13B	8.32B	7.01B	8.35B	11.16B	7.38B
Total Liabilities	69.74B	85.84B	89.07B	86.91B	86.47B	77.10B
Stockholders Equity	145.04B	147.65B	142.35B	134.43B	129.50B	123.86B
Cash Flow
Free Cash Flow	0.00	11.08B	1.71B	5.83B	3.88B	-252.00M
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: Neutral

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 2854.55, below the 50-day MA of 2886.42, and above the 200-day MA of 2601.07, indicating a neutral trend. The MACD of -76.04 indicates Positive momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 60.49 is Neutral, 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
1941	76 Outperform	¥256.84B	12.19	7.43%	2.78%	1.31%	59.20%
1930	76 Outperform	¥43.14B	7.43	7.09%	3.06%	-5.41%	5.68%
1939	76 Outperform	¥94.92B	13.41	―	4.38%	-0.84%	-1.80%
1959	74 Outperform	¥681.82B	12.93	―	2.15%	-5.20%	-1.20%
1934	68 Neutral	¥180.31B	9.99	―	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 Overhauls Executive Lineup to Support 2030 Vision and Mid-Term Plan

Yurtec Corporation has reviewed its executive structure to align with its 2030 Vision and Medium-Term Management Plan for 2024–2028, leading to a series of leadership changes effective April 1, 2026. The board-approved reshuffle covers directors and executive officers, including confirmation of Representative Director and Chairman Toshinori Abe, Representative Director and President Ikumi Kobayashi, and other internal and external directors, with one director, Yasuhiro Suzuki, retiring.

Additional director changes have been internally decided in preparation for formal approval at the 112th Annual General Meeting of Shareholders scheduled for June 2026. The adjustments are aimed at strengthening governance and management oversight as the company pursues its long-term strategic targets, signaling a deliberate effort to align leadership capabilities with future growth and operational priorities.

The most recent analyst rating on (JP:1934) stock is a Buy with a Yen3701.00 price target. To see the full list of analyst forecasts on Yurtec Corporation stock, see the JP:1934 Stock Forecast page.

Yurtec Takes ¥7.6 Billion Hit on Sigma, Cuts Full-Year Profit Outlook

Yurtec Corporation will book significant extraordinary losses in the fourth quarter of the fiscal year ending March 31, 2026, mainly linked to its Vietnamese subsidiary Sigma Engineering JSC, whose profitability deteriorated amid a prolonged slump in private construction and delayed wind power investment. The company will recognize a ¥4.7 billion loss on valuation of Sigma’s shares on a non-consolidated basis, alongside a one-time amortization of goodwill and related asset impairments totaling ¥2.9 billion at the consolidated level.

As a result, Yurtec has revised its full-year forecasts, lowering expected net sales but raising operating and ordinary profit forecasts due to improved construction profitability from tighter cost management. Nonetheless, profit attributable to owners of parent is now projected to decline versus the prior outlook on both a consolidated and non-consolidated basis, signaling earnings pressure for shareholders despite operational efficiency gains and underscoring the risks of its overseas expansion strategy.

The most recent analyst rating on (JP:1934) stock is a Buy with a Yen3701.00 price target. To see the full list of analyst forecasts on Yurtec Corporation stock, see the JP:1934 Stock Forecast page.

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.