Kandenko Co., Ltd. (JP:1942)
:1942
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Kandenko Co., Ltd.
(1942)
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Rating:78Outperform
Price Target:
¥7,749.00
▲(54.12% Upside)
Action:Upgraded
Date:04/30/26
The score is driven primarily by solid financial strength (improving earnings and a low-leverage balance sheet), tempered by multi-year cash flow volatility despite a 2026 rebound. Technicals add support with a strong uptrend and positive momentum, while valuation is reasonable with a mid-teens P/E and a modest dividend yield.
Positive Factors
Low-leverage balance sheet
A conservatively financed balance sheet with debt-to-equity around 5%–8% provides durable financial flexibility for bidding on large EPC projects, absorbing project timing shocks, and funding working capital without forcing distressed asset sales or rapid external financing, supporting multi‑period stability.
Negative Factors
Volatile cash generation
Material swings in operating and free cash flow over multiple years point to working-capital and project-timing risk. Even with earnings up, inconsistent cash conversion can strain liquidity, raise short-term financing needs, and limit the company's ability to consistently fund capex, dividends, or absorb contract delays.
Read all positive and negative factors
Positive Factors
Negative Factors
Low-leverage balance sheet
A conservatively financed balance sheet with debt-to-equity around 5%–8% provides durable financial flexibility for bidding on large EPC projects, absorbing project timing shocks, and funding working capital without forcing distressed asset sales or rapid external financing, supporting multi‑period stability.
Read all positive factors
Kandenko Co., Ltd. (1942) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.42T
Dividend Yield2%
Average Volume (3M)856.03K
Price to Earnings (P/E)17.1
Beta (1Y)0.67
Revenue Growth10.44%
EPS Growth50.36%
CountryJP
Employees10,442
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)311.77
Shares Outstanding205,288,330
10 Day Avg. Volume1,145,720
30 Day Avg. Volume856,033
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)3.06
Price to Sales (P/S)1.61
P/FCF Ratio16.21
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥8,000.00Price Target Upside59.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)325.94
Revenue Forecast (FY)¥773.13B
Kandenko Co., Ltd. Business Overview & Revenue Model
Company Description
Kandenko Co.,Ltd. operates as a general infrastructure company in Japan. It engages in the facility installation works, electrical equipment sale, real estate rental and leasing, and electric power sale, as well as electrical, plumbing, and other ...
How the Company Makes Money
Kandenko primarily makes money by executing contracted construction/engineering projects and recognizing revenue based on delivering those projects. Key revenue streams include: (1) EPC/installation contracting for electrical and building-services...
Kandenko Co., Ltd. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
56
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 742.02B | 671.89B | 598.43B | 541.58B | 495.57B |
| Gross Profit | 120.71B | 92.92B | 71.19B | 60.14B | 56.72B |
| EBITDA | 94.00B | 68.06B | 49.80B | 40.78B | 38.08B |
| Net Income | 63.52B | 42.38B | 27.34B | 21.17B | 20.32B |
Balance Sheet | |||||
| Total Assets | 635.62B | 603.22B | 567.27B | 495.87B | 478.57B |
| Cash, Cash Equivalents and Short-Term Investments | 79.94B | 60.99B | 66.65B | 65.23B | 72.61B |
| Total Debt | 14.06B | 27.11B | 27.27B | 15.78B | 15.80B |
| Total Liabilities | 229.93B | 222.27B | 221.47B | 187.41B | 185.05B |
| Stockholders Equity | 390.27B | 367.86B | 333.94B | 298.40B | 283.98B |
Cash Flow | |||||
| Free Cash Flow | 73.67B | 3.38B | 1.57B | 2.00B | 19.91B |
| Operating Cash Flow | 89.45B | 18.26B | 19.84B | 7.46B | 27.15B |
| Investing Cash Flow | -4.83B | -10.17B | -19.08B | -6.63B | -9.22B |
| Financing Cash Flow | -65.64B | -12.63B | 567.00M | -7.32B | -7.79B |
Kandenko Co., Ltd. Technical Analysis
Neutral
5028.00
Price Trends
6210.96
Negative
5676.56
Positive
4799.23
Positive
Market Momentum
20.53
Negative
49.22
Neutral
30.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1942, the sentiment is Neutral. The current price of 5028 is below the 20-day moving average (MA) of 6140.21, below the 50-day MA of 6210.96, and above the 200-day MA of 4799.23, indicating a neutral trend. The MACD of 20.53 indicates Negative momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 30.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:1942.
Kandenko Co., Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ¥674.13B | 15.99 | 8.34% | 2.66% | 2.61% | 22.78% | |
78 Outperform | ¥266.74B | 9.89 | 7.43% | 2.78% | 2.69% | -6.90% | |
78 Outperform | ¥1.42T | 17.13 | 14.94% | 2.00% | 10.44% | 50.36% | |
78 Outperform | ¥672.68B | 11.33 | ― | 2.15% | 0.46% | 38.67% | |
70 Outperform | ¥568.33B | 14.38 | ― | 2.51% | 17.43% | 16.94% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:1942
Kandenko Co., Ltd.
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Kandenko Co., Ltd. Corporate Events
Kandenko Revamps Board With New Independent Outside Director
Apr 28, 2026
Kandenko Co., Ltd. has announced changes to its board, proposing the appointment of Takayuki Konno as a new outside director, effective following shareholder approval at the annual general meeting on June 26, 2026. Konno, currently a senior adviso...
Kandenko Details TEPCO Ties, Governance Safeguards and Major Share Buyback
Apr 28, 2026
Kandenko disclosed details of its relationships with controlling shareholders, notably Tokyo Electric Power Company Holdings (TEPCO) and TEPCO Power Grid, which together hold over a third of its voting rights and accounted for about 24% of its net...
Kandenko Lifts Medium-Term Targets After Record Profit, Tightens Focus on Capital Efficiency
Apr 28, 2026
Kandenko has revised its FY2024–FY2026 medium-term management plan after fiscal 2025 results exceeded the original final-year targets, driven by productivity gains, optimized construction systems, and a stronger profit structure amid robust ...
Kandenko Lifts Year-End Dividend, Boosting Annual Shareholder Payout
Apr 28, 2026
Kandenko Co., Ltd. has approved a higher year-end dividend from surplus for the fiscal year ended March 31, 2026, raising the planned payout to ¥79 per share from the previously forecast ¥75. The move, subject to shareholder approval in ...
Kandenko Posts Surging Profits and Hikes Dividends on Solid FY2026 Results
Apr 28, 2026
Kandenko Co., Ltd. reported strong consolidated results for the fiscal year ended March 31, 2026, with net sales up 10.4% to ¥742.0 billion and profit attributable to owners of parent surging 49.9% to ¥63.5 billion. Profitability indicat...
Kandenko Sets Terms for ¥128 Billion Secondary Share Offering and Over-Allotment
Feb 16, 2026
Kandenko Co., Ltd. has set the terms for a large secondary offering of its common stock, with underwriters purchasing 18,259,400 shares at an underwriting value of 5,843.64 yen and selling them at 6,095 yen per share, for a total selling amount of...
Kandenko Overhauls Leadership Ahead of New Management Structure in 2026
Feb 9, 2026
Kandenko Co., Ltd. announced a planned overhaul of its top management, including the retirement of Representative Director and Executive Vice President Yuji Ueda, effective April 1, 2026, as part of a transition to a new management structure. Seni...
Kandenko Adjusts Size of Secondary Share Offering After Large Share Buyback
Feb 2, 2026
Kandenko Co., Ltd. has revised the size of its previously announced secondary offering of common stock after conducting a large-scale share repurchase via the Tokyo Stock Exchange’s ToSTNeT-3 system, in which it bought back 5,392,700 of its ...
Kandenko Completes Nearly ¥30 Billion Share Buyback via ToSTNeT-3
Feb 2, 2026
Kandenko Co., Ltd. has completed a major share repurchase via the Tokyo Stock Exchange’s ToSTNeT-3 off-auction system, buying back 5,392,700 common shares for a total of ¥29,999,590,100 on February 2, 2026, thereby effectively using alm...
Kandenko Sets Terms for Up to ¥30 Billion Share Buyback via ToSTNeT-3
Jan 30, 2026
Kandenko Co., Ltd. has decided to repurchase up to 5,392,700 of its own common shares, equivalent to 2.64% of its outstanding stock excluding treasury shares, through an off-auction own share repurchase trade (ToSTNeT-3) on the Tokyo Stock Exchang...
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.