Yondenko Corporation (1939) AI Stock Analysis

• Market Cap: ¥65.83B
• Dividend Yield: 4.77%
• Average Volume (3M): 101.00K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.73
• Revenue Growth: -0.84%
• EPS Growth: -1.80%
• Country: JP
• Employees: 2,610
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 33.99
• Shares Outstanding: 48,766,410
• 10 Day Avg. Volume: 71,690
• 30 Day Avg. Volume: 101,003
• PEG Ratio: 0.89
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.57
• P/FCF Ratio: -30.13
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥1,693.00 ▲(12.19% Upside)

Yondenko Corporation's stock is rated highly due to its strong financial performance, characterized by revenue growth and solid profitability. The technical analysis indicates bullish momentum, supported by favorable valuation metrics. However, attention is needed on cash flow management to sustain long-term growth.

Positive Factors

Revenue Growth

The company's consistent revenue growth highlights its ability to capture market opportunities and expand its service offerings, which is critical for long-term success in the competitive engineering and construction industry.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic fluctuations.

Profitability Margins

Sustained profitability margins reflect the company's efficient operations and ability to manage costs, which are essential for maintaining competitive advantage and shareholder value over time.

Negative Factors

Cash Flow Management

Challenges in cash flow management could hinder the company's ability to fund operations and invest in growth, potentially impacting its long-term financial health and operational capacity.

Cash Conversion Challenges

Difficulty in converting income into cash may limit the company's liquidity and operational flexibility, affecting its ability to respond to market changes and invest in strategic initiatives.

Free Cash Flow Decline

A decline in free cash flow can strain financial resources, limiting the company's ability to reinvest in its business and potentially affecting its long-term growth prospects.

Yondenko Corporation Business Overview & Revenue Model

Company Description

Yondenko Corporation engages in the electrical, and electrical power transmission and distribution facilities construction activities in Japan. The company is involved in the construction of building, public, and factory electrical facilities; air conditioning systems; water supply, drainage, and sanitary plumbing systems; water treatment systems; facilities and equipment for telecommunications; and disaster and crime prevention facilities. It also constructs overhead power transmission and distribution facilities; underground power transmission and distribution facilities; civil engineering projects; and solar power generation facilities, as well as information and communications equipment. In addition, it is involved in the private finance initiative business; public private partnership; development and sale of CAD software for building equipment; solar power business; and power pole advertising activities. The company was formerly known as Shikoku Electric Construction Corporation and changed its name to Yondenko Corporation in November 1989. Yondenko Corporation was incorporated in 1948 and is headquartered in Takamatsu, Japan.

How the Company Makes Money

Yondenko Corporation generates revenue through several key streams. The primary source of income is from electricity sales to residential, commercial, and industrial customers, where they charge based on consumption. The company also earns revenue from its investments in renewable energy projects, such as solar and wind farms, which provide additional income through government incentives and power purchase agreements. Additionally, Yondenko offers energy management solutions and consulting services, which help clients optimize their energy use and reduce costs, further contributing to their earnings. Strategic partnerships with government agencies and other energy firms enhance their market reach and operational efficiency, driving growth and profitability.

Yondenko Corporation Financial Statement Overview

Summary

Yondenko Corporation shows strong financial health with robust revenue growth and profitability margins. The balance sheet is stable with low leverage, but cash flow management needs improvement due to recent declines.

Income Statement

Yondenko Corporation has demonstrated strong financial performance with a consistent increase in revenue, showing a growth rate of 14.95% from 2024 to 2025. The company maintains a healthy gross profit margin of 17.36% and a net profit margin of 4.89%, indicating effective cost management and profitability. The EBIT and EBITDA margins are also solid at 7.63% and 9.37%, respectively, reflecting robust operational efficiency.

Balance Sheet

The balance sheet is strong with a favorable equity ratio of 65.05%, highlighting a solid equity base. The debt-to-equity ratio is low at 0.13, suggesting prudent financial leverage and reduced risk. Return on equity (ROE) stands at 7.98%, indicating reasonable returns to shareholders. The overall stability and low leverage position the company well for future growth.

Cash Flow

Cash flow management presents mixed results. The company experienced a negative free cash flow growth rate due to a decrease from positive free cash flow in 2024 to negative in 2025. The operating cash flow to net income ratio indicates challenges in converting income into cash. However, the company has managed capital expenditures effectively in previous years, which contributes positively to its cash flow outlook.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.86B	105.88B	92.11B	89.12B	92.65B	89.63B
Gross Profit	18.00B	18.38B	16.13B	13.99B	14.62B	14.08B
EBITDA	9.53B	9.92B	9.34B	8.12B	8.00B	7.51B
Net Income	5.01B	5.17B	4.57B	3.76B	3.78B	3.65B
Balance Sheet
Total Assets	90.58B	99.63B	103.20B	97.07B	96.52B	99.00B
Cash, Cash Equivalents and Short-Term Investments	15.59B	16.96B	23.06B	11.04B	11.96B	11.99B
Total Debt	6.16B	8.46B	10.05B	11.48B	13.01B	14.09B
Total Liabilities	26.22B	34.74B	41.41B	41.16B	42.34B	47.43B
Stockholders Equity	64.27B	64.81B	61.74B	55.85B	54.12B	51.52B
Cash Flow
Free Cash Flow	0.00	-2.02B	4.62B	2.45B	8.51B	8.11B
Operating Cash Flow	0.00	-536.00M	6.04B	3.81B	9.92B	9.42B
Investing Cash Flow	0.00	-1.18B	-598.00M	148.00M	-1.59B	-1.75B
Financing Cash Flow	0.00	-4.28B	-3.11B	-3.13B	-2.55B	-2.37B

Yondenko Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1509.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1939, the sentiment is Positive. The current price of 1509 is above the 20-day moving average (MA) of 1428.90, above the 50-day MA of 1379.45, and above the 200-day MA of 1302.76, indicating a bullish trend. The MACD of 31.66 indicates Negative momentum. The RSI at 71.46 is Negative, neither overbought nor oversold. The STOCH value of 92.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1939.

Yondenko Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1976	80 Outperform	¥78.02B	10.69	―	3.63%	-3.62%	9.37%
1965	78 Outperform	¥117.65B	14.76	―	1.76%	20.44%	106.45%
1982	77 Outperform	¥99.72B	15.18	―	2.30%	4.81%	-1.16%
1939	77 Outperform	¥65.83B	12.69	―	4.77%	-0.84%	-1.80%
1945	73 Outperform	¥57.98B	20.50	―	2.91%	-7.98%	37.92%
1929	68 Neutral	¥51.13B	18.04	―	3.85%	11.81%	52.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Yondenko Corporation Corporate Events

Yondenko Corporation Reports Decline in Q1 2025 Financial Results

Yondenko Corporation reported a decline in its financial performance for the three months ended June 30, 2025, with net sales dropping by 13% and operating profit decreasing by 18.3% compared to the same period last year. Despite the downturn, the company maintains a strong equity ratio of 71%, suggesting a stable financial position. The company has not revised its forecast for the fiscal year ending March 31, 2026, indicating confidence in its strategic plans moving forward.