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Kandenko Co., Ltd. (JP:1942)
:1942
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Kandenko Co., Ltd. (1942) AI Stock Analysis

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JP:1942

Kandenko Co., Ltd.

(Frankfurt:1942)

Rating:77Outperform
Price Target:
¥4,032.00
▲(2.54% Upside)
Kandenko Co., Ltd. achieves a strong overall stock score driven primarily by its robust financial performance and positive technical indicators. While its valuation is fair, the company's solid financial foundation and growth potential in the construction industry support its positive outlook. Attention should be given to potential short-term volatility due to technical analysis signals.

Kandenko Co., Ltd. (1942) vs. iShares MSCI Japan ETF (EWJ)

Kandenko Co., Ltd. Business Overview & Revenue Model

Company DescriptionKandenko Co., Ltd., established in 1942, is a Japanese company specializing in electrical engineering and construction services. It operates primarily in the sectors of power distribution, telecommunications infrastructure, and environmental engineering. The company's core services include the design, installation, and maintenance of electrical systems, as well as the development of energy-efficient solutions and telecommunications networks.
How the Company Makes MoneyKandenko Co., Ltd. generates revenue through various streams, primarily from its electrical engineering and construction services. The company earns income by providing comprehensive solutions for power distribution systems, which include installation and maintenance of electrical infrastructure for both residential and commercial sectors. Additionally, Kandenko is involved in the development and deployment of telecommunications infrastructure, contributing to its revenue. The company also focuses on environmental engineering projects, providing energy-efficient and sustainable solutions to its clients. Significant partnerships with government bodies and private sector clients play a crucial role in securing large-scale projects, which are vital to the company's earnings.

Kandenko Co., Ltd. Financial Statement Overview

Summary
Kandenko Co., Ltd. demonstrates strong financial health with robust revenue growth and profitability margins. The company maintains a low leverage balance sheet and strong equity ratio, although there is potential for enhancing cash conversion efficiency.
Income Statement
85
Very Positive
Kandenko Co., Ltd. has demonstrated a strong revenue growth trend, with a 12.26% increase from 2024 to 2025 and consistent growth over the past years. The gross profit margin for 2025 was 13.83%, indicating solid profitability in the construction industry. The net profit margin also improved to 6.31%, reflecting efficient cost management and operational performance. EBIT and EBITDA margins have also shown improvement, reaching 8.68% and 10.66% respectively. These figures highlight the company's ability to grow revenue while maintaining healthy profitability.
Balance Sheet
78
Positive
The balance sheet reflects a healthy financial structure with a debt-to-equity ratio of 0.07, indicating low leverage and a strong equity position. The company has a high equity ratio of 60.96%, which suggests a stable financial foundation with more assets financed by equity than debt. Return on equity improved to 11.52%, showcasing effective utilization of shareholder capital. While the balance sheet shows strong equity and low debt levels, the relatively modest ROE could suggest potential for further efficiency improvements.
Cash Flow
70
Positive
The cash flow statement indicates positive free cash flow growth with a 114.94% increase from 2024 to 2025, demonstrating significant improvement in cash generation. The operating cash flow to net income ratio of 0.43 suggests moderate cash conversion efficiency. The free cash flow to net income ratio is 0.08, indicating room for enhancement in free cash flow relative to net income. Overall, the cash flow position is improving but could benefit from further strengthening.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue671.89B598.43B541.58B495.57B556.04B
Gross Profit92.92B71.19B60.14B56.72B55.15B
EBITDA71.61B54.09B40.78B38.08B37.29B
Net Income42.38B27.34B21.17B20.32B20.15B
Balance Sheet
Total Assets603.22B567.27B487.83B470.97B457.00B
Cash, Cash Equivalents and Short-Term Investments60.99B66.65B65.23B72.61B63.48B
Total Debt27.11B27.27B15.78B15.80B16.63B
Total Liabilities222.27B221.48B179.37B177.45B177.54B
Stockholders Equity367.86B333.94B298.40B283.98B270.42B
Cash Flow
Free Cash Flow3.38B1.57B2.00B19.91B7.12B
Operating Cash Flow18.26B19.84B7.46B27.15B12.87B
Investing Cash Flow-10.17B-19.08B-6.63B-9.22B-972.00M
Financing Cash Flow-12.63B567.00M-7.32B-7.79B-26.32B

Kandenko Co., Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3932.00
Price Trends
50DMA
3499.40
Positive
100DMA
3163.10
Positive
200DMA
2763.22
Positive
Market Momentum
MACD
130.67
Positive
RSI
70.83
Negative
STOCH
57.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:1942, the sentiment is Positive. The current price of 3932 is above the 20-day moving average (MA) of 3769.10, above the 50-day MA of 3499.40, and above the 200-day MA of 2763.22, indicating a bullish trend. The MACD of 130.67 indicates Positive momentum. The RSI at 70.83 is Negative, neither overbought nor oversold. The STOCH value of 57.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:1942.

Kandenko Co., Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
¥75.86B9.70
2.54%4.24%22.05%
78
Outperform
¥184.21B15.34
2.53%8.39%54.30%
77
Outperform
€785.55B16.4914.13%2.03%16.45%60.65%
75
Outperform
¥217.52B10.189.72%3.03%5.58%97.09%
74
Outperform
¥508.39B17.60
1.95%-4.63%-8.48%
71
Outperform
¥140.17B12.43
3.42%6.80%15.08%
71
Outperform
¥267.79B15.158.31%2.75%6.08%11.04%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:1942
Kandenko Co., Ltd.
3,932.00
1,926.50
96.06%
JP:1934
Yurtec Corporation
2,690.00
1,342.15
99.58%
JP:1946
Toenec Corporation
1,460.00
541.40
58.94%
JP:1959
Kyudenko Corporation
7,176.00
786.84
12.32%
JP:1976
Meisei Industrial Co., Ltd.
1,614.00
422.14
35.42%
JP:1941
CHUDENKO
3,955.00
887.74
28.94%

Kandenko Co., Ltd. Corporate Events

Kandenko Completes Treasury Stock Disposal for Compensation
Aug 8, 2025

Kandenko Co., Ltd. has completed the payment for the disposal of 10,106 shares of treasury stock as part of a restricted stock-based compensation plan. This move is aimed at aligning the interests of its directors with the company’s performance, potentially impacting its governance and stakeholder relations.

The most recent analyst rating on (JP:1942) stock is a Buy with a Yen2720.00 price target. To see the full list of analyst forecasts on Kandenko Co., Ltd. stock, see the JP:1942 Stock Forecast page.

Kandenko Subsidiary Revises Financial Forecasts Upward
Jul 31, 2025

Kandenko Co., Ltd.’s subsidiary, Kawasaki Setsubi Kogyo Co., Ltd., has revised its financial forecasts for the fiscal year ending March 31, 2026. The revised projections indicate a significant increase in net sales and profits for both the second quarter and the full fiscal year, reflecting positive business trends and potentially strengthening the company’s market position.

The most recent analyst rating on (JP:1942) stock is a Buy with a Yen2720.00 price target. To see the full list of analyst forecasts on Kandenko Co., Ltd. stock, see the JP:1942 Stock Forecast page.

Kandenko Co., Ltd. Reports Strong Financial Growth in Q1 2025
Jul 31, 2025

Kandenko Co., Ltd. reported a significant increase in its financial performance for the three months ended June 30, 2025, with net sales rising by 28.5% and profit attributable to owners of the parent increasing by 71.4% compared to the same period last year. This robust growth is indicative of the company’s strong market positioning and operational efficiency, which are likely to positively impact its stakeholders and enhance its competitive edge in the industry.

The most recent analyst rating on (JP:1942) stock is a Buy with a Yen3550.00 price target. To see the full list of analyst forecasts on Kandenko Co., Ltd. stock, see the JP:1942 Stock Forecast page.

Kandenko Co., Ltd. Announces Treasury Stock Disposal for Director Compensation
Jul 14, 2025

Kandenko Co., Ltd. has announced a disposal of treasury stock as part of a restricted stock-based compensation plan for its directors. This move aims to align the directors’ interests with shareholders by tying compensation to stock performance, thereby incentivizing directors to enhance corporate value and contribute to stock price appreciation.

The most recent analyst rating on (JP:1942) stock is a Buy with a Yen2720.00 price target. To see the full list of analyst forecasts on Kandenko Co., Ltd. stock, see the JP:1942 Stock Forecast page.

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 31, 2025