Yondenko Corporation (1939) AI Stock Analysis

• Market Cap: ¥61.54B
• Dividend Yield: 4.7%
• Average Volume (3M): 90.66K
• Price to Earnings (P/E): 11.7
• Beta (1Y): 0.82
• Revenue Growth: 14.94%
• EPS Growth: 13.18%
• Country: JP
• Employees: 2,610
• Sector: Industrials
• Sector Strength: 88
• Industry: Engineering & Construction
• EPS (TTM): 109.44
• Shares Outstanding: 48,766,410
• 10 Day Avg. Volume: 81,480
• 30 Day Avg. Volume: 90,660
• PEG Ratio: -14.18
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.14
• 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

• Rating: 73 Outperform
• Price Target: ¥1,436.00 ▲(12.54%Upside)

Yondenko Corporation's strong financial performance and attractive valuation are significant strengths, offering growth potential and value to investors. Technical indicators suggest neutral market momentum, which tempers the overall outlook slightly. The main area for improvement is cash flow management to support continued growth.

Yondenko Corporation Business Overview & Revenue Model

Company Description

Yondenko Corporation, established in 1939, operates primarily in the construction and engineering sectors, providing comprehensive electrical and telecommunications infrastructure services. The company is involved in the design, installation, and maintenance of electrical facilities, telecommunications networks, and renewable energy systems, catering to both public and private sector clients in Japan.

How the Company Makes Money

Yondenko Corporation generates revenue through its diverse service offerings in the electrical and telecommunications infrastructure sectors. The company earns money by undertaking projects that involve the design, installation, and maintenance of electrical facilities and telecommunications networks. Key revenue streams include construction contracts for power transmission lines, substations, and distribution networks, as well as projects related to renewable energy systems such as solar and wind power installations. Significant partnerships with government agencies, utility companies, and private enterprises contribute to its earnings by providing a steady stream of contracts and projects that require Yondenko's specialized expertise.

Yondenko Corporation Financial Statement Overview

Summary

Yondenko Corporation demonstrates strong financial health with a notable revenue growth rate of 14.95% and solid profitability margins. The balance sheet is stable with low leverage, though cash flow management needs improvement due to recent declines in free cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
104.16B	105.88B	92.11B	89.12B	92.65B	89.63B
	Gross Profit
18.35B	18.38B	16.13B	13.99B	14.62B	14.08B
	EBIT
8.34B	8.07B	6.44B	4.97B	5.42B	5.09B
	EBITDA
9.82B	9.92B	8.76B	7.39B	8.00B	7.51B
	Net Income Common Stockholders
5.43B	5.17B	4.57B	3.76B	3.78B	3.65B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.46B	16.96B	23.06B	11.04B	11.96B	11.99B
	Total Assets
93.70B	99.63B	103.20B	97.07B	96.52B	99.00B
	Total Debt
6.58B	8.46B	10.05B	11.48B	13.01B	14.09B
	Net Debt
-1.88B	-995.00M	-912.00M	3.87B	4.69B	5.63B
	Total Liabilities
30.97B	34.74B	41.41B	41.16B	42.34B	47.43B
	Stockholders Equity
62.65B	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: Neutral
• Last Price: 1276.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1939, the sentiment is Neutral. The current price of 1276 is below the 20-day moving average (MA) of 1288.35, above the 50-day MA of 1264.40, and below the 200-day MA of 1329.83, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 50.88 is Neutral, neither overbought nor oversold. The STOCH value of 74.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	¥66.98B	8.16		3.65%	9.78%	38.18%
1965	80 Outperform	¥66.77B	9.63		3.01%	14.25%	63.31%
1945	74 Outperform	¥38.24B	13.82		4.34%	-23.45%	<0.01%
1982	73 Outperform	¥77.50B	12.96		2.91%	7.19%	24.96%
1939	73 Outperform	¥61.54B	11.66		4.70%	14.94%	13.18%
1929	68 Neutral	¥43.30B	17.84		5.01%	-9.64%	-31.42%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%

Yondenko Corporation Corporate Events

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.

Yondenko Corporation Revises Financial Forecasts Upward Amid Strong Performance

Yondenko Corporation has announced an upward revision to its financial results and year-end dividends forecasts for the fiscal year ended March 31, 2025. The company has experienced steady progress in its construction work, leading to expected increases in sales and profits beyond previous forecasts, reflecting a robust operational performance.