Yondenko Corporation (1939) AI Stock Analysis

• Market Cap: ¥63.95B
• Dividend Yield: 4.53%
• Average Volume (3M): 79.88K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.81
• Revenue Growth: 14.94%
• EPS Growth: 13.18%
• Country: JP
• Employees: 2,610
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 26.50
• Shares Outstanding: 48,766,410
• 10 Day Avg. Volume: 70,040
• 30 Day Avg. Volume: 79,880
• PEG Ratio: -2.67
• Price to Book (P/B): 0.94
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ¥1,436.00
• Price Target Upside: 8.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ¥1,456.00 ▲(9.80%Upside)

The overall stock score is driven by strong financial performance and attractive valuation metrics. Technical analysis indicates moderate momentum, but cash flow management needs improvement. The combination of these factors positions Yondenko as a solid but not outstanding investment opportunity in the engineering and construction industry.

Yondenko Corporation Business Overview & Revenue Model

Company Description

Yondenko Corporation, founded in 1939, is a leading Japanese company specializing in electrical engineering and construction. The company operates in sectors such as electrical installation, power distribution, telecommunications, and renewable energy solutions, providing comprehensive services ranging from design and installation to maintenance and support. Yondenko is known for its expertise in delivering high-quality infrastructure projects that support the electrical and communication needs of its clients.

How the Company Makes Money

Yondenko Corporation generates revenue primarily through its contract-based projects in electrical engineering and construction. The company secures contracts from both public and private sectors to design, install, and maintain electrical systems, power distribution networks, and telecommunications infrastructure. Key revenue streams include large-scale electrical installation projects, maintenance services, and emerging opportunities in renewable energy systems, such as solar power installations. Yondenko also benefits from long-term service agreements, which provide a stable income from ongoing maintenance and support. Strategic partnerships with government entities and private corporations enhance its ability to secure significant contracts, contributing to its financial performance.

Yondenko Corporation Financial Statement Overview

Summary

Yondenko Corporation shows strong revenue growth and profitability, with solid margins and a stable balance sheet. However, cash flow management is a concern due to recent declines, impacting the overall financial performance score.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	105.88B	92.11B	89.12B	92.65B	89.63B
Gross Profit	18.38B	16.13B	13.99B	14.62B	14.08B
EBITDA	9.92B	8.76B	7.39B	8.00B	7.51B
Net Income	5.17B	4.57B	3.76B	3.78B	3.65B
Balance Sheet
Total Assets	99.63B	103.20B	97.07B	96.52B	99.00B
Cash, Cash Equivalents and Short-Term Investments	16.96B	23.06B	11.04B	11.96B	11.99B
Total Debt	8.46B	10.05B	11.48B	13.01B	14.09B
Total Liabilities	34.74B	41.41B	41.16B	42.34B	47.43B
Stockholders Equity	64.81B	61.74B	55.85B	54.12B	51.52B
Cash Flow
Free Cash Flow	-2.02B	4.62B	2.45B	8.51B	8.11B
Operating Cash Flow	-536.00M	6.04B	3.81B	9.92B	9.42B
Investing Cash Flow	-1.18B	-598.00M	148.00M	-1.59B	-1.75B
Financing Cash Flow	-4.28B	-3.11B	-3.13B	-2.55B	-2.37B

Yondenko Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1326.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 1326 is above the 20-day moving average (MA) of 1300.85, above the 50-day MA of 1292.20, and below the 200-day MA of 1338.31, indicating a neutral trend. The MACD of 7.48 indicates Negative momentum. The RSI at 63.83 is Neutral, neither overbought nor oversold. The STOCH value of 88.19 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	82 Outperform	¥72.43B	8.78		2.66%	9.78%	38.89%
1965	81 Outperform	¥81.15B	11.70		2.48%	14.25%	63.31%
1982	78 Outperform	¥89.34B	14.94		2.34%	7.19%	25.44%
1939	73 Outperform	¥63.95B	12.12		4.53%	14.94%	13.18%
1945	73 Outperform	¥51.75B	18.70		3.21%	-23.45%	<0.01%
1929	68 Neutral	¥47.83B	19.85		4.16%	-9.64%	-31.42%
Sector *	58 Neutral	HK$14.89B	4.75	-2.78%	5.07%	3.80%	-54.55%

Yondenko Corporation Corporate Events

Yondenko Completes Treasury Share Disposal for Stock Compensation

Yondenko Corporation has completed the payment procedures for the disposal of 56,700 treasury shares under its restricted stock compensation plan, as resolved by its Board of Directors. This move is aimed at aligning the interests of the company’s directors and executive officers with its long-term performance, potentially impacting its corporate governance and shareholder value.

Yondenko Corporation to Dispose Treasury Shares Under Compensation Plan

Yondenko Corporation has announced its decision to dispose of treasury shares under a restricted stock compensation plan, aiming to align the interests of its directors and executive officers with those of shareholders. This strategic move is intended to motivate the company’s leadership to enhance corporate value and contribute to a rise in stock price, thereby strengthening its market position.

Yondenko Corporation Highlights Strategic Ties with Shikoku Electric Power

Yondenko Corporation has detailed its relationship with its controlling shareholder, Shikoku Electric Power Co., Inc., highlighting that 43.7% of its net sales come from contracts with Shikoku Electric Power and its subsidiary. Despite these close ties, Yondenko maintains a degree of independence through its governance system and independent management decisions. The announcement underscores the company’s strategic positioning within the Shikoku Electric Power Group, which could impact stakeholders by ensuring continued business stability and growth through these established contracts.

Yondenko Corporation Announces Board Restructuring

Yondenko Corporation has announced a significant change in its board of directors, with new appointments set to be confirmed at the upcoming Annual General Meeting. This restructuring aims to bring fresh perspectives to the company’s leadership, potentially impacting its strategic direction and governance.

Yondenko Corporation Reports Strong Financial Growth Amidst Cash Flow Challenges

Yondenko Corporation reported a significant increase in its consolidated financial results for the fiscal year ended March 31, 2025, with net sales rising by 14.9% and operating profit increasing by 25.3% compared to the previous year. Despite a decrease in comprehensive income, the company achieved a higher return on equity and improved its equity ratio, indicating a stronger financial position. However, cash flows from operating activities turned negative, and the company announced a reduced dividend forecast for the next fiscal year, reflecting cautious financial planning.