Kandenko Co., Ltd. (JP:1942)
:1942
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Kandenko Co., Ltd.
(1942)
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Rating:72Outperform
Price Target:
¥6,598.00
▲(31.23% Upside)
Action:UpgradedDate:02/20/26
The score is primarily driven by strong financial performance (revenue and margin improvement plus a low-leverage balance sheet), partially offset by only moderate cash conversion. Technicals remain supportive due to a strong uptrend, but overbought signals elevate near-term risk. Valuation is a further headwind given the higher P/E and modest yield.
Positive Factors
Revenue Growth
Consistent revenue growth of ~12% YoY indicates durable demand for Kandenko’s engineering and installation services. Over a 2-6 month horizon the trend supports a growing project backlog and stronger contract negotiating leverage, reducing short-term volatility in revenue recognition.
Negative Factors
Cash Conversion
Operating cash flow converts less than half of reported net income and free cash flow is a small fraction of earnings, signaling working-capital tied up in projects. This constrains internal funding for capex or cushions, increasing sensitivity to slower collections or cost overruns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Consistent revenue growth of ~12% YoY indicates durable demand for Kandenko’s engineering and installation services. Over a 2-6 month horizon the trend supports a growing project backlog and stronger contract negotiating leverage, reducing short-term volatility in revenue recognition.
Read all positive factors
Kandenko Co., Ltd. (1942) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥1.29T
Dividend Yield2%
Average Volume (3M)856.03K
Price to Earnings (P/E)13.0
Beta (1Y)0.69
Revenue Growth16.43%
EPS Growth53.76%
CountryJP
Employees10,442
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)97.05
Shares Outstanding205,288,330
10 Day Avg. Volume1,145,720
30 Day Avg. Volume856,033
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.49
Price to Sales (P/S)0.81
P/FCF Ratio162.24
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)303.65
Revenue Forecast (FY)¥737.75B
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 contracting and delivering electrical and related building-services engineering projects. Its revenue model is centered on (1) project-based construction/installation revenue earned under contracts to design and i...
Kandenko Co., Ltd. Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 727.98B | 671.89B | 598.43B | 541.58B | 495.57B | 556.04B |
| Gross Profit | 111.80B | 92.92B | 71.19B | 60.14B | 56.72B | 55.15B |
| EBITDA | 85.44B | 68.06B | 49.80B | 40.78B | 38.08B | 37.29B |
| Net Income | 56.73B | 42.38B | 27.34B | 21.17B | 20.32B | 20.15B |
Balance Sheet | ||||||
| Total Assets | 644.20B | 603.22B | 567.27B | 495.87B | 478.57B | 464.83B |
| Cash, Cash Equivalents and Short-Term Investments | 77.48B | 60.99B | 66.65B | 65.23B | 72.61B | 63.48B |
| Total Debt | 34.56B | 27.11B | 27.27B | 15.78B | 15.80B | 16.63B |
| Total Liabilities | 229.06B | 222.27B | 221.47B | 187.41B | 185.05B | 185.37B |
| Stockholders Equity | 400.57B | 367.86B | 333.94B | 298.40B | 283.98B | 270.42B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.38B | 1.57B | 2.00B | 19.91B | 7.12B |
| Operating Cash Flow | 0.00 | 18.26B | 19.84B | 7.46B | 27.15B | 12.87B |
| Investing Cash Flow | 0.00 | -10.17B | -19.08B | -6.63B | -9.22B | -972.00M |
| Financing Cash Flow | 0.00 | -12.63B | 567.00M | -7.32B | -7.79B | -26.32B |
Kandenko Co., Ltd. Technical Analysis
Positive
5028.00
Price Trends
6140.06
Positive
5564.74
Positive
4670.90
Positive
Market Momentum
-22.66
Positive
52.88
Neutral
53.66
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 5028 is below the 20-day moving average (MA) of 6324.00, below the 50-day MA of 6140.06, and above the 200-day MA of 4670.90, indicating a bullish trend. The MACD of -22.66 indicates Positive momentum. The RSI at 52.88 is Neutral, neither overbought nor oversold. The STOCH value of 53.66 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ¥257.94B | 12.19 | 7.43% | 2.78% | 1.31% | 59.20% | |
74 Outperform | ¥595.64B | 13.52 | 8.34% | 2.66% | 5.14% | 12.52% | |
72 Outperform | ¥1.29T | 12.95 | 14.94% | 2.00% | 16.43% | 53.76% | |
72 Outperform | ¥696.70B | 12.93 | ― | 2.15% | -5.20% | -1.20% | |
70 Outperform | ¥545.20B | 14.38 | ― | 2.51% | 15.47% | 64.50% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
JP:1942
Kandenko Co., Ltd.
6,306.00
3,647.98
137.24%
JP:1941
CHUDENKO
4,690.00
1,481.94
46.19%
JP:1721
COMSYS Holdings
5,128.00
1,939.40
60.82%
JP:1951
Kyowa Exeo
2,747.00
1,042.26
61.14%
JP:1959
Kyudenko Corporation
9,834.00
5,071.87
106.50%
Kandenko Co., Ltd. Corporate Events
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...
Kandenko Posts Strong Nine-Month Results and Raises Dividend Forecast as Auditor Clears Interim Review
Jan 29, 2026
Kandenko reported strong consolidated results for the nine months ended December 31, 2025, with net sales rising 12.3% year on year to ¥511.6 billion and profit attributable to owners of parent jumping 45.0% to ¥46.2 billion, reflecting ...
Kandenko to Launch ¥30 Billion Share Buyback to Bolster Shareholder Returns
Jan 29, 2026
Kandenko Co., Ltd. has resolved to repurchase up to 7.5 million shares, or about 3.67% of its outstanding common stock excluding treasury shares, for a maximum of ¥30 billion over the period from February 2 to February 6, 2026 via ToSTNeT-3 o...
Kandenko Launches Secondary Share Offering to Reshape Shareholder Base and Fund Growth
Jan 29, 2026
Kandenko has approved a secondary offering of its common shares as part of a broader capital and shareholder base restructuring aimed at enhancing medium- to long-term corporate value. The move follows record-high fiscal 2024 results, which allowe...
Kandenko Lifts Full-Year Outlook and Dividend on Strong Nine-Month Earnings
Jan 29, 2026
Kandenko reported strong consolidated results for the nine months ended December 31, 2025, with net sales rising 12.3% year on year to ¥511.6 billion and profit attributable to owners of parent surging 45.0% to ¥46.2 billion, supported b...
Kandenko Subsidiary Kawasaki Setsubi Kogyo Lifts Full-Year Earnings Forecast on Strong Construction Demand
Jan 29, 2026
Kandenko announced that its subsidiary Kawasaki Setsubi Kogyo has revised upward its earnings forecast for the fiscal year ending March 31, 2026, reflecting stronger-than-expected business conditions. Kawasaki Setsubi now projects net sales of ...
Kandenko Lifts Earnings and Dividend Outlook on Strong Renewable and Infrastructure Demand
Jan 29, 2026
Kandenko Co., Ltd. has sharply revised upward its full-year consolidated and non-consolidated earnings forecasts for the fiscal year ending March 31, 2026, projecting higher net sales and significantly improved profits versus its April 2025 guidan...
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.