Yondenko Corporation (1939) AI Stock Analysis

• Market Cap: ¥80.74B
• Dividend Yield: 4.38%
• Average Volume (3M): 101.00K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.80
• Revenue Growth: -0.84%
• EPS Growth: -1.80%
• Country: JP
• Employees: 2,610
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 29.06
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ¥1,900.00 ▲(21.95% 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

Balance sheet strength

A high equity ratio and very low leverage provide durable financial flexibility for an engineering & construction firm, enabling the company to bid on large projects, withstand cyclicality, and access capital without raising structural default risk. This underpins long-term strategic optionality and lowers financing costs.

Sustainable operating margins

Consistent gross and operating margins indicate structural operational efficiency in project delivery and cost control. For the medium term this supports reinvestment capacity, steady profitability through project cycles, and the ability to absorb input-cost volatility without eroding core returns.

Recent revenue expansion

A material year-over-year revenue increase signals successful contract wins or higher project throughput, reflecting demand for services and scalable operations. Sustained top-line growth improves backlog visibility, spreads fixed costs, and enhances long-term margin recovery potential in a project-driven industry.

Negative Factors

Deteriorating cash conversion

A shift to negative free cash flow and weak operating-cash-to-net-income conversion reduces internal funding for capex, dividends, or working capital. Over months this can constrain bidding capacity, force reliance on external financing despite low leverage, and increase vulnerability to project payment timing.

Recent revenue metric weakness

A negative recent revenue-growth metric suggests near-term top-line pressure or timing mismatches in project recognition. In engineering & construction, volatile revenue can reflect backlog timing, contract delays or competitive pricing, reducing predictability of cash flows and complicating multi-quarter planning.

Earnings per share contraction

Negative EPS growth indicates pressures on profitability after share-count effects are considered; over the medium term this can limit retained earnings and reduce financial flexibility. Persistent EPS decline may signal margin squeeze, project cost overruns, or lower pricing power in competitive markets.

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 exhibits strong financial health with notable revenue growth and solid profitability margins. The balance sheet indicates financial stability with low leverage, though cash flow management requires attention 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: 1558.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 1558 is below the 20-day moving average (MA) of 1673.80, below the 50-day MA of 1569.54, and above the 200-day MA of 1373.67, indicating a bullish trend. The MACD of 54.47 indicates Negative momentum. The RSI at 74.97 is Negative, neither overbought nor oversold. The STOCH value of 60.92 is Neutral, 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	¥80.94B	10.27	―	3.46%	-3.62%	9.37%
1965	78 Outperform	¥156.27B	16.08	―	1.55%	20.44%	106.45%
1982	77 Outperform	¥108.52B	17.09	―	2.14%	4.81%	-1.16%
1939	77 Outperform	¥80.74B	14.97	―	4.38%	-0.84%	-1.80%
1929	75 Outperform	¥54.43B	16.22	―	3.78%	11.81%	52.35%
1945	73 Outperform	¥58.53B	16.28	―	2.95%	-7.98%	37.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Yondenko Corporation Corporate Events

Yondenko Sets 2030 Growth Plan With Focus on Metropolitan Expansion and Higher ROE

Yondenko Corporation has unveiled its Medium-Term Management Guidelines 2030, a five-year plan covering fiscal 2026–2030 that builds on the early achievement of its previous targets, including surpassing goals for net sales, operating profit and ROE one year ahead of schedule. The new guidelines prioritize securing long-term construction capacity amid demographic headwinds, expanding its presence in the Tokyo and Kansai metropolitan markets, and reinforcing electric power transmission and distribution facilities to meet growing electricity demand. The company aims to mitigate cost and procurement risks, capture business from renewable energy and energy-saving investments, and enhance productivity and value creation through DX and AI, while integrating ESG-focused management across operations. Financially, Yondenko targets fiscal 2030 consolidated net sales of ¥120 billion, operating profit of ¥11 billion, and ROE of 10%, supported by deploying about ¥55 billion in cash flows over five years into human capital, business expansion, and ESG/DX initiatives, alongside maintaining financial soundness and providing shareholder returns aligned with improved capital efficiency.

The most recent analyst rating on (JP:1939) stock is a Hold with a Yen1888.00 price target. To see the full list of analyst forecasts on Yondenko Corporation stock, see the JP:1939 Stock Forecast page.

Yondenko Raises Full-Year Profit Forecasts on Strong Cost and Project Management

Yondenko Corporation has revised upward its consolidated and non-consolidated earnings forecasts for the fiscal year ending March 31, 2026, while keeping sales projections unchanged. Despite initially anticipating lower revenue and profit due to the absence of prior-year large-scale projects, the company now expects consolidated operating profit to rise to ¥8.0 billion and profit attributable to owners of parent to ¥6.0 billion, with corresponding increases in non-consolidated profit metrics, driven by tighter management of construction progress and costs. The revision implies stronger-than-expected profitability and improved earnings per share following the recent stock split, signaling more resilient operational efficiency than previously forecast and potentially strengthening the company’s positioning and returns outlook for shareholders.

The most recent analyst rating on (JP:1939) stock is a Hold with a Yen1888.00 price target. To see the full list of analyst forecasts on Yondenko Corporation stock, see the JP:1939 Stock Forecast page.

Yondenko Maintains Profit Growth and Lifts Dividend Outlook Despite Lower Sales

Yondenko Corporation reported consolidated net sales of ¥68.13 billion for the nine months ended December 31, 2025, a 9.3% year-on-year decline, with operating profit down 11.1% to ¥5.55 billion and ordinary profit down 9.7% to ¥5.88 billion. Despite lower revenue, profit attributable to owners of parent edged up 2.9% to ¥4.04 billion and basic earnings per share rose to ¥85.29, supported by improved comprehensive income and a stronger equity ratio of 71.4% as total assets decreased and net assets increased. The company revised its dividend forecast, now planning total annual dividends of ¥72.00 per share for the fiscal year ending March 31, 2026, and updated its full-year forecast to expect net sales of ¥100 billion, modest declines in operating and ordinary profit, but a 16.0% increase in profit attributable to owners of parent to ¥6.0 billion, signaling an emphasis on profitability and shareholder returns despite a softer top line.

The most recent analyst rating on (JP:1939) stock is a Hold with a Yen1888.00 price target. To see the full list of analyst forecasts on Yondenko Corporation stock, see the JP:1939 Stock Forecast page.