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

• Market Cap: €734.68B
• Dividend Yield: 2.22%
• Average Volume (3M): 757.86K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.53
• Revenue Growth: 16.45%
• EPS Growth: 60.65%
• Country: JP
• Employees: 10,442
• Sector: Industrials
• Sector Strength: 86
• Industry: Engineering & Construction
• EPS (TTM): 61.91
• Shares Outstanding: 205,288,330
• 10 Day Avg. Volume: 787,270
• 30 Day Avg. Volume: 757,860
• PEG Ratio: 1.99
• Price to Book (P/B): 1.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €3,904.68
• Price Target Upside: 4.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: ¥4,032.00 ▲(8.24%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. 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 works. The company also undertakes works on electrical facilities and equipment inside various types of buildings and structures, building interiors, control equipment, and interior network; and environmental facilities and systems, and renovation works on air conditioning and sanitation systems, as well as water, heat, and disaster prevention systems. In addition, it is involved in the construction and maintenance of networks for cable TV and municipalities; and mobile communication base stations, as well as installation of optical fiber cables and related equipment for electric power providers and telecommunications providers. Further, the company undertakes the construction and maintenance of overhead power distribution lines facilities, including power poles with power cables; and underground distribution lines facilities, such as underground power cables. Additionally, it undertakes works on power stations and substations, and renewable energy power generation; overhead transmission lines; and underground transmission lines and civil engineering works, as well as designs and constructs solar and wind power plants; and inspects and maintains nuclear power plant facilities and equipment. Kandenko Co.,Ltd. was incorporated in 1944 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Kandenko 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

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

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

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.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	671.89B	598.43B	541.58B	495.57B	556.04B
Gross Profit	92.92B	71.19B	60.14B	56.72B	55.15B
EBITDA	71.61B	54.09B	40.78B	38.08B	37.29B
Net Income	42.38B	27.34B	21.17B	20.32B	20.15B
Balance Sheet
Total Assets	603.22B	567.27B	487.83B	470.97B	457.00B
Cash, Cash Equivalents and Short-Term Investments	60.99B	66.65B	65.23B	72.61B	63.48B
Total Debt	27.11B	27.27B	15.78B	15.80B	16.63B
Total Liabilities	222.27B	221.48B	179.37B	177.45B	177.54B
Stockholders Equity	367.86B	333.94B	298.40B	283.98B	270.42B
Cash Flow
Free Cash Flow	3.38B	1.57B	2.00B	19.91B	7.12B
Operating Cash Flow	18.26B	19.84B	7.46B	27.15B	12.87B
Investing Cash Flow	-10.17B	-19.08B	-6.63B	-9.22B	-972.00M
Financing Cash Flow	-12.63B	567.00M	-7.32B	-7.79B	-26.32B

Kandenko Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3725.00
• 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:1942, the sentiment is Positive. The current price of 3725 is above the 20-day moving average (MA) of 3415.90, above the 50-day MA of 3232.92, and above the 200-day MA of 2632.75, indicating a bullish trend. The MACD of 78.55 indicates Negative momentum. The RSI at 71.32 is Negative, neither overbought nor oversold. The STOCH value of 77.18 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1976	82 Outperform	¥73.37B	9.38		2.63%	4.24%	22.05%
1942	77 Outperform	€734.68B	15.42	14.13%	2.22%	16.45%	60.65%
Sector *	71 Outperform	¥269.60B	14.19	8.47%	2.85%	6.33%	12.37%
CKOCF	―	$1.34B	9.39	9.72%	4.11%	―	―
1934	78 Outperform	¥169.56B	14.12		2.74%	8.39%	54.30%
1959	74 Outperform	¥457.45B	15.83		2.13%	-4.63%	-8.48%
1946	71 Outperform	¥128.27B	11.37		3.77%	6.80%	15.08%

Kandenko Co., Ltd. Corporate Events

Kandenko Subsidiary Revises Financial Forecasts Upward

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

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

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.

Kandenko Announces Board Reshuffle Ahead of AGM

Kandenko Co., Ltd. has announced changes in its board of directors and Audit & Supervisory Board members, with new appointments set to be confirmed at the upcoming Annual General Meeting of Shareholders. These changes, including the nomination of Mika Narahashi as an outside director, are expected to enhance the company’s governance and align with regulatory standards, potentially impacting its strategic direction and stakeholder relations.