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Yondenko Corporation (JP:1939)
:1939
Japanese Market
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Yondenko Corporation (1939) AI Stock Analysis

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JP:1939

Yondenko Corporation

(1939)

Rating:73Outperform
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 (1939) vs. iShares MSCI Japan ETF (EWJ)

Yondenko Corporation Business Overview & Revenue Model

Company DescriptionYondenko 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 MoneyYondenko 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
82
Very Positive
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
76
Positive
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
67
Positive
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue105.88B92.11B89.12B92.65B89.63B
Gross Profit18.38B16.13B13.99B14.62B14.08B
EBITDA9.92B8.76B7.39B8.00B7.51B
Net Income5.17B4.57B3.76B3.78B3.65B
Balance Sheet
Total Assets99.63B103.20B97.07B96.52B99.00B
Cash, Cash Equivalents and Short-Term Investments16.96B23.06B11.04B11.96B11.99B
Total Debt8.46B10.05B11.48B13.01B14.09B
Total Liabilities34.74B41.41B41.16B42.34B47.43B
Stockholders Equity64.81B61.74B55.85B54.12B51.52B
Cash Flow
Free Cash Flow-2.02B4.62B2.45B8.51B8.11B
Operating Cash Flow-536.00M6.04B3.81B9.92B9.42B
Investing Cash Flow-1.18B-598.00M148.00M-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 Price1326.00
Price Trends
50DMA
1292.20
Positive
100DMA
1282.82
Positive
200DMA
1338.31
Negative
Market Momentum
MACD
7.48
Negative
RSI
63.83
Neutral
STOCH
88.19
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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥72.43B8.78
2.66%9.78%38.89%
81
Outperform
¥81.15B11.70
2.48%14.25%63.31%
78
Outperform
¥89.34B14.94
2.34%7.19%25.44%
73
Outperform
¥63.95B12.12
4.53%14.94%13.18%
73
Outperform
¥51.75B18.70
3.21%-23.45%<0.01%
68
Neutral
¥47.83B19.85
4.16%-9.64%-31.42%
58
Neutral
HK$14.89B4.75-2.78%5.07%3.80%-54.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1939
Yondenko Corporation
1,324.00
175.10
15.24%
JP:1929
Nittoc Construction Co., Ltd.
1,154.00
86.84
8.14%
JP:1945
Tokyo Energy & Systems Inc.
1,620.00
402.59
33.07%
JP:1965
Techno Ryowa Ltd.
4,035.00
2,436.94
152.49%
JP:1976
Meisei Industrial Co., Ltd.
1,570.00
293.22
22.97%
JP:1982
Hibiya Engineering,Ltd.
3,960.00
910.41
29.85%

Yondenko Corporation Corporate Events

Yondenko Completes Treasury Share Disposal for Stock Compensation
Jul 18, 2025

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
Jun 27, 2025

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
Jun 27, 2025

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
Apr 30, 2025

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
Apr 30, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025